Trend Alert: Retiring? Why New Construction Is Winning
I realized something this past weekend. A large number of my recent clients who have retired and moved out of San Jose have moved into newly constructed homes. Can you imagine how nice that would be? You’d be able to move into a perfect and fresh new house, leaving all your unfinished or unstarted projects and repairs behind. Additionally, everyone is moving to less expensive areas: Southern California, the greater Sacramento area, the Sierra Nevada foothills, Idaho, Washington, Oregon, North Carolina, Texas, etc!
So, how can you make this work?
- Purchase the new-construction home contingent on selling your Bay Area property. Developers are often open to this, especially if you have already hired a Realtor and have a schedule in place.
- If you need to pull money from your current equity in order to access funds for your down payment, talk to a lender about your options. Examples include a HELOC, bridge loan, etc. You will likely need to arrange a HELOC before you put your current home on the market. If a bridge loan is a better option, talk to the developer’s lender, and there may be a discount for using them.
- Move into temporary housing like an Airbnb or a standard rental while you sell your home and wait for escrow to close. Many find that renting something that is close to their new home is beneficial; you can keep an eye on the construction and get to know the community.
- I recommend negotiating a “rent-back” when you sell your home, allowing you to stay in your current home after closing, even for just a week to allow for the funds to transfer to your new home’s escrow. You can usually negotiate rent-backs for up to 60 days.
These tips can also be used if you buy a previously owned home! Whatever your plan, you can usually find a way to make it happen if you have been building up equity in San Jose and are ready to “right size” your cost of living and get a nice change of scenery!
Where would YOU go?
Give us a call if you have any questions! We’d love to help you get into your dream home.
Your Local Realtor and Cambrian Specialist,
Kirsten Reilly | Broker Associate
(408) 835-2962
