Can empty nesters downsize without having to deal with an interim home?

Q: The big yard and large house aren’t as attractive now that the kids are gone. Moving to a smaller home in the area would be ideal. The selling of our house would not be an issue. Trying to sell a large home and buy a smaller house seems impossible in this current housing market. Do you have any ideas on how empty nesters can transition successfully to a smaller property, preferably without an interim move?

A: To sell and buy homes simultaneously during a seller’s market — sans an interim move — you’ll need patience, luck, and a deftly skilled real estate agent. Few agents have the will or skill to take on concurrent home sales. This is the case even more so due to limited housing stock. Instead, selling your home, moving into interim housing and having cash in the bank are recommendations by most agents.

In 2021, the California Association of Realtors (C.A.R.) revised its Seller’s Purchase of Replacement Property form. It is named C.A.R. Form SPRP. The first paragraph begins: “The Agreement is contingent on the Seller entering into a contract to acquire replacement property or identifying a suitable property to move to.” The process relies on ready, willing and able homebuyers under contract to buy these sellers’ homes. If a seller fails to secure a replacement property, the homebuyer and seller terminate their transaction.

Additionally, some lenders have refined their bridge loans. It allows a home seller to obtain a temporary loan on their departing residence to use as a down payment toward their replacement property. Then the seller pivots to selling their departing residence to pay off at least the bridge loan. Some lenders will allow recasting of the new primary loan. That allows the proceeds from the sale of the departing property to pay down their new primary loan, recalculating a lower monthly payment.

The newly popular multiple-generation households or work-from-home buyers with kids want four- or five-bedroom homes with oversize lots. The starter two-bedroom condos or single-family homes they need to sell are what empty nesters wish to buy. So be patient, hire a great agent and share the luck by making your moves.

Questions, concerns or inquiries? Realtor Pat Kapowich is a Certified Real Estate Brokerage Manager and career-long consumer protection advocate. His hometown of Sunnyvale, California, is where he is based. Office Landline: 408-245-7700, [email protected] Broker# 00979413 www.YouTube.com/PatKapowich