The low level of homes for sale in Oregon favors sellers. That is, until they want to move. If they put their existing home on the market and it sells quickly, but can’t find a new property, what can they do?
Renting the old home for up to three months can work, if the new owner agrees and the lender allows it. But at some point, the previous owner receives the boot.
A different approach for people who fear they won’t find another place to live: They can borrow a down payment for their next home from relatives or retirement funds before putting their old property up for sale.
Here’s a new option: Knock Home Swap “pre-finances” homeowners against a mortgage so they can bid on a new home that is not conditional on the sale of the old one.
The Home Swap service includes a bridging loan that covers the down payment on the new home as well as money to repair the existing home for sale and up to six months of mortgage payments on the old home.
Homeowners can move into their new home, prepare to list their old home, and not have to make two mortgage payments.
“A lot of homeowners who wanted to move have felt trapped in their homes,” said Drew Coleman, senior broker for the Drew Coleman team at The Hasson Company. “The Knock Home Swap program solves this problem.”
Knock is not an instant buy service, commonly referred to as iBuyer, that buys homes off the market and quickly puts them up for sale after doing minor repairs and upgrades.
Knock is a mortgage originator that charges a convenience fee of 1.25% on the purchase price of a new home or condo. Consumers work with their own agent to purchase a replacement home, then list and sell their current home.
Leslie Hilbert, managing director of Xperience Brokerage Network, said customers can also avoid the anxiety of making a less than desirable contingency offer, the stress of coordinating two closings and the hassle and expense of two moves.
Hilbert’s network includes Keller Williams Realty Professionals; Keller Williams Real Estate Sunset Corridor; Real estate capital of Keller Williams; Keller Williams Realty Eugene and Springfield; and Keller Williams of southern Oregon.
The Home Swap program, in 65 markets nationwide, is also available through Keller Williams Realty Mid-Willamette; Keller Williams Realty Portland Central; Keller Williams Realty Portland Elite; Properties of Soldera; and Ross Seligman, Living Room Realty.
– Janet Eastman | 503-294-4072
Learn more about the Portland and Oregon real estate market:
• These hot Portland homes have sold well above asking price: homeowner pockets $ 605,000 more than expected
• What’s the benefit of appraising a home below fair value? Bidding wars. The history of semi-detached houses
• ‘Really Tan Portland Ken’ lists glass mansion for $ 9,495,000
• The five best Portland area zip codes that savvy shoppers are targeting might surprise you