Agent

Tight inventory forcing sellers to make double moves

Despite inconvenience, setup offers benefits when buying replacement home

It's nice to know where you'll be living next before you let go of the home you've been comfortable living in for years. However, not only is this not possible for most repeat homebuyers, it may not be the most financially prudent approach. Lender tightening in recent years has made it difficult for most buyers to buy a new home before selling the old one. This may not be the case for homeowners who have plenty of cash for a down payment on a new home and plan to keep the current home as a rental property. If the rental property will generate a cash flow and the owners have good employment histories and excellent credit, this is a workable strategy. It enables the homeowners to stay put until they find a home they want to buy. In low-inventory markets, offers made contingent on the sale of a buyer's property have little chance of success, especially if there are multiple offers from buyers who don't need to make a contingent sale offer. In this situation, buyers need to sel...