700k house, he asked his Realtor if the Sellers will be willing to take the trade in, and his Realtor said the sellers are willing, how would this work out? My brother wants to move right in, if he has to sell it, he might loose out on the custom house and will have to sumbit the offer with a condition, that he must sell his to buy.
2006-11-13 17:21:53 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
ebay
2006-11-13 17:24:10 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Looks like your brother is in Southern California.
If the sellers agree to the swap, just put the 700k home in the purchase agreement or do two separate transactions. If your brother has not lived in the 700k house for 2 of 5 years, he should look into something called a 1031 exchange. His Realtor should help him out or point him in the right direction.
But you're right, if the sellers do not want to buy the 700k house, then the best route to go is to make the purchase of the 2 million dollar home contingent on the ability to sell the 700k home. Do not get a bridge loan in this market.
Regards
2006-11-14 03:32:44 · answer #2 · answered by Anonymous · 1⤊ 0⤋
That is one of the biggest problems when you have to sell a house in order to buy a house. Putting that contingency in the listing makes is a problem if someone else puts an offer in. Contingencies are not good for the buyer.
It is best to sell your home first then start looking for another home while it is in escrow. Most people can not qualify for the new home if they are still making payments on their present home.
Make sure this 2 million house is worth the money. Many thiings have been over-priced in the last few years and should not be now. The market is leveling off.
If his home is not quite worth what he is asking, of course, he will take your brothers home in trade. Deduct the $700,000 off the price and he still gets a lot of cash.
Can your brother qualitfy for this expensive home? Is it in his best interest to buy it? Do you have an idea what the yearly taxes will be?
Never ever jump at any home. Do your research and take your time. Mistakes are made when the seller or agent leads you to believe it wont be here tomorrow.
2006-11-13 17:31:34 · answer #3 · answered by Nevada Pokerqueen 6 · 1⤊ 0⤋
Talk to a mortage broker, maybe he can get a bridge loan so buying the new house isn't contingent on selling the current home.
2006-11-14 02:48:09 · answer #4 · answered by strtat2 5 · 0⤊ 0⤋
New house 2 million
Old house 700k
Balance of 1.3 million
If there is a balance on the old house it would be added to the balance of the new house.
2006-11-14 17:34:13 · answer #5 · answered by tianaramal 4 · 0⤊ 0⤋