What should i do? Need expert suggestions please?

Question

I want to buy a new house, but I still have to sell my old house. I'm afraid that I won't be able to sell the old house soon enough and I would have to worry about paying monthly for both houses if I move into new house. What would be the best way for me to handle this situation, besides telling me not to buy the new house? I really need to move. Thanks in advance!

I'm still kinda a newbie in buying houses. Some of you are mentioning "contingencies", can you please elaborate more on what that is?

I do have a real estate agent working with me.

Answer 1

You have 3 options:

1) Don't buy a new house until yours has been sold (meaning you have the money in your hand, not that you have an offer to purchase).

2) As others have said, do a contingent contract on the home you are trying to buy. A contingent contract states that you will buy the new house if your existing house has sold by a specific date. While this is a valid option, many sellers will not accept a contingent contract.

3) Rent your current house then buy a new one.

If you need more info, please feel free to email me.

Answer 2

I have a question...

How come you don't know this?

If you are actually in the market for a house, you have not had a real estate agent mention anything about "contingincies" to you? It's the most common strategy in selling a house that I'm aware of.

You put your house up for sale...

You go looking for the house you want to buy...

You find a house you want to buy...

You make an offer on the house you want to buy...

and the purchase of said house is contingent on the sale of your current house...

Answer 3

I am by no means an expert, but you might be able to get a contingency sale through your real estate agent that your purchase is contingent on your current house selling within a certain time frame.

Answer 4

READ CAREFULLY - Now, it seems you are like the millions of other homeowners who do not want to hear the truth. They want someone who is going to justify what they already want to do. I am not a newbie. I was once the youngest general certified appraiser in the US (LICENCED BY THE STATE). I have always been around people in Real Estate, and have an background in Finance and Economics... THE REAL ESTATE MARKET HAS CRASHED...POOF...GONE...BYE BYE. What you see in the news in delayed information about 3 months old. This means is what they are reporting (facts and figures) happened really 90 days ago. So what you need to do is when you read or watch one of these stories is to say "Damn, I wonder where they will be in 3 months"...which pretty much means "foreclosure". There is no way you will be able to sell your home. If you did you will be upside down. This means you owe more on your home than it is worth. If you can stay in it for the next 5 to 7 years (I pray you have a fixed rate), you might be able to get out of it without having to write a check at your own escrow. If not, you need to really start looking at what the future holds without the rose colored glasses. Stay in constant contact with your bank, check to see how long homes are staying on the market in your area, PAY ATTENTION TO THE MARKET. Remember, this is going to get real ugly before it even starts to clear up.....

Good Luck ~ BD

Answer 5

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Answer 6

Renting it out is actually a good idea! But if you're fixed on getting it sold, I can give you a hint on how to find the right realtor...the one that's more likely to get it sold for you. A reputable realtor is NOT what's its all about, in my personal opinion. It's those that advertise their listings in every magazines, newspapers, etc... The key to selling is exposure! The more it is exposed to the public, obviously, the higher the chance it's going to be seen by others! Dont settle for someone who uses only the MLS to list his/her properties. Ask where he/she advertises and verify. I'm not a realtor, but I have ownership in a real estate company and that's what I have observed!

Meanwhile, it wouldnt be a smart idea to look for another house before you have the other sold. List your house first, ones you at least find a buyer THEN look for another property. It's going to take about the same amount of time for your buyer to close on your home as it will for you to close on your new home! Make sure you find a qualified buyer! (unless of course he/she buys it cash)

Answer 7

In this stagnate market......the last thing you should consider is buying before your current home sells.....homes are taking a lot longer to sell and for quite a bit less than 6 months ago.....

You need a real estate agent.....especially for a contigency sale....the fact that you don't know about it means you could really benefit from their knowledge.....

Answer 8

Hello,

Have you considered renting it out? If the market has gone soft (like with me due to seasons and economy) and you are losing on your old house, this might be an option. Don't want to deal with renters? For a fee, have a property manager do it all for you.

I am going through the same question. Go to Forbes.com for a rent-or-sell calculator. A real estate investment could pay off, especially if you have alot of your mortgage paid off. I don't have anything paid down, and I am considering renting it out anyway. Of course, for your second home you may not be able to get a mortgage through a bank, you may have to look to a mortgage broker (which may give you lower rates than banks anyway - and if you have paid down your first mortgage, you can back your second house with your rental).

The best thing for you to do is to lay out ALL your finances to a financial advisor. Get one FREE through your bank and ask for the best one available (lots of experience with real estate investment, LOTS of credentials and one that handles 250,000 in assets, because with house purchases you are in that range.) Consider handing your property to a property manager like I am - especially if moving far away. I am actually going to keep my property and run it at a loss monthly to avoid the heavy bank penalties of getting out of my mortgage. Make sure- if you are going to do this - that your next property is cheaper to lessen your risk and that in the end your mortgage is paid down more than you are paying out (I am going to be paying out 170.00/month to keep my property, but my tenant is paying 320.00 down on my mortgage). This is a risk but over the long term can really help.

My situation: I am going to a job that pays more, and I can handle a loss of 10 000 better in 3-5 years than right now - right now I am hovering on bankrupcy because of the mortgage penalties are over 15 000 (I am moving 6 months after purchasing and the real estate market has gone down) -- but I have to move for my future. If I can hold on to my property for even 2 years, better yet 10-20 years, I am laughing and considered rich. Poverty and wealth is a very fine line, my friend.

Best advice: go to your bank manager that holds your mortgage and get recommended to the best advisor you can get that is specially trained in large investments.

Good luck and I hope this helps!

Answer 9

You should sell the house and let however much time go by that's ok. If the house has not sold by that time, then rent it out. That's what my parents did.

Answer 10

make the offer on the new house subject to the sale of your existing house within a limited period of time.