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  1. #1
    Join Date
    Jun 2005
    Location
    New Hampshire
    Posts
    66

    Default Timing of Selling old House/ Buying New House

    Any advice is welcome, How does this work, is there a right way to do it. Thanks!

  2. #2
    Join Date
    Jun 2005
    Location
    The Whale's Vagina
    Posts
    4,021

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    I think a lot of it depends on the market in your area. Your best bat might be to discuss it with an agent familiar with the market.

    We put in an offer on a new place before our current one sold. W elive in avery hot market though and we were certain we would sell quikcly as units in our building generally stayed on the market less than two weeks. (Ours sold in less than a week.) All offers we made had a contingency clause that we would sell by X date or the buyers could pull the offer and sell to someone else if they wanted.
    'Thou shalt not' might reach the head, but it takes 'Once upon a time' to reach the heart.-Philip Pullman

  3. #3
    Join Date
    Jun 2005
    Posts
    469

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    Totally depends on your market and your own situation. For our situation we think our house may take a while to sell due to the market we are in and we do not want two mortgages. So we are waiting to start looking at new houses before we get quite a few people looking at our current home. I would hate to find a house we loved but maybe had to let it go because ours is still for sale. Of course you can always do a contingency offer on the new home as well if you cannot handle two mortgages. We may go that route this summer if ours still has not sold.

  4. #4
    Join Date
    Jun 2005
    Location
    SoCal
    Posts
    757

    Default

    Like the others said, your decision will be based on your area's market and your tolerance for risk. We bought before we sold because we were confident in our market and our home. It worked out well but because of overlapping escrows we did have two mortgages for a month. It was quite stressful but we ended up getting exactly what we wanted, so it was ultimately worth it for us.

  5. #5
    Join Date
    Jun 2005
    Posts
    23

    Default

    Hi, I am interested in learning more about the same thing.. ee_chick, did you have to qualify for two mortgages in your case? I.e did you have to qualify for your new mortgage, taking account the amount you owe on the first? I've heard about bridge loans -- do any of you guys have any info on that?

    Thanks in advance

  6. #6
    Join Date
    Jun 2005
    Location
    SoCal
    Posts
    757

    Default

    doradora, we did qualify to have both mortgages. Because we wanted to leverage some of the equity in the older house, we took out a HELOC because we found the terms to be more favorable than using a bridge loan. We had enough equity that we could do this without painting ourselves into a corner with regard to selling our house. (meaning that we had plenty of flexibility with regards to selling price -- we didn't leverage ourselves completely)

    I found the process to be extremely stressful, even though we financially qualified to hold both mortgages. In the two months that we bought and sold the market in our area noticably slowed (though this didn't end up affecting us) and we had wildfires that caused both of the homes to be evacuated. I am very glad that we did it this way because I my new house is a gem, but I don't know that I would do it again.

  7. #7
    Join Date
    Jul 2005
    Posts
    379

    Default

    We had originally decided to buy before selling because 1) that makes it easier to move and 2) we KNEW we wanted to find something new, and we didn't want to pass up a great house just because our place hadn't sold. We actually got an equity line on our (current) townhouse so that we could pull out the money we needed for the downpayment on the new house, and we were ready to go. We did this because we thought we would have trouble unloading our townhouse, but this approach was lots cheaper than a bridge loan. (FWIW, banks don't really love it when you do this, so you have to be sure to get the paperwork lined up BEFORE you put your house on the market.)

    In the end we managed to sign contracts for the sale of our townhouse and the purchase of our new house on the same day, so we could have closed on both transactions on the same day. However, for a variety of reasons we chose to close on our new house about 2 weeks before closing on the sale of our old one. During that two weeks, we will technically have THREE mortgages (old, new, and equity); but it's such a short period of time, we know we can swing it financially; and the added flexibility it gives us with respect to moving and our timetable was worth more than the financial costs associated with this move.

    Incidentally, this approach also helped us get the house we wanted. They seller got 2 comparable offers on the same day, but the other offer was contingent on the sale of their place whereas ours wasn't, so we got the house. FWIW, this is NOT a terribly "hot" market (central NC), so we did not anticipate having to deal with that kind of scenario; but boy were we glad to be in a position to move quickly!

  8. #8
    Join Date
    Jul 2005
    Location
    Houston, TX
    Posts
    531

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    I have kind of the opposite situation of most people here. We are living in a transitional area, where most homes are on the market for 2-6 months, and wanting to move into an area where homes sell in a couple of weeks. Because of that, I think the best approach will be to sell this one, then after closing, buy a new one. The danger in that, though is a) being outbid constantly and not being able to find a place fast enough, and b) having to settle for a home that we don't absolutely love. This new house will be our home for at least the next 15 to 20 years, and I don't want to settle.

    I think we'll probably have to live in an apartment between homes in order to do it exactly right without undue pressure. But I SO do not want to move twice...

  9. #9
    Join Date
    Jul 2005
    Location
    Houston, TX
    Posts
    531

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    So, after I posted the above, I was driving and saw a neighbor loading things into one of those PODS storage units. I think this will be our solution, if it comes to it! No need to pack and unload twice if we have to find an interim place to stay. And it's not that much more expensive than the regular storage unit we already have (that is packed to the gills...)

    I just wanted to share this, in case anyone else was having the same issue.

    http://www.pods.com/

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