Home Buying in Knoxville>Question Details

Belinda.hayse, Home Buyer in Powell, TN

Our house has not sold yet but we have found the perfect house to buy.

Asked by Belinda.hayse, Powell, TN Fri Oct 26, 2012

We have about 11% of the price of the home in cash. Have any sellers that you know of ever worked out a plan to make the purchase possible?

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Answers

9
Hello Belinda,
As many of my fellow agents have said, there are a number of possibilities with regard to making the purchase of the home you're interested in. Placing a contingent offer may be an option, but contingencies can be complicated, and there is always the potential for disappointment should your current house not sell in the meantime. Mr. Tabit's comments are wise in this situation. If you are currently represented by an agent in the sale of your house, a conversation about timing and motivation may be order. If you are representing yourselves in a For Sale By Owner situation, I would strongly advise you to consider utilizing the skills and marketing expertise of a professional Realtor in order to sell your house quickly. I would be more than happy to speak with you about what I can accomplish for you in either the sale of your existing house, or the purchase of your dream home if you are unrepresented. Please do not hesitate to let me know of I may answer any other questions, or help you as you negotiate the real estate market. I'm available by email, phone, or text at any time.

Warmly,

Caroline Holt, Realtor
Coldwell Banker Wallace & Wallace
(865) 323-1836
1 vote Thank Flag Link Fri Oct 26, 2012
i might have a way but its complicated. i am a mortgage broker in knoxville tn. i don't recommend making an offer on a home with a contingency of selling your's first in this market. its not easy to sell a house today. i'm not a realtor but making an offer like that is a waste of time because the seller will continue to show and take offers on the house and even though you know what rates and underwriting guidelines are today they may not be the same next week or even tommorow. if rates go up you may not even qualify for the house by the time you sell yours. if you're really serious about the house and can make 2 mortgage payments for a while then go for it. however you can't get an fha loan if you already have one on your existing home. if that is the case you might need to refinance it out of an fha loan and into a conventional loan. i have a lender that will do that even though your house is currently on the market. if you wish to discuss this option please feel free to call me at 865 322 0984.

roy cook
0 votes Thank Flag Link Wed Jan 9, 2013
Belinda,
You have some good advice so far, but no one has suggested what I think may be the most important, get serious about selling your house. If you've been on the market for a while but haven't received any offers ask yourself and your agent, why?
Are you well marketed, in every available website with great color pictures, compelling descriptions highlighting the homes best features? Do you have great flyers and other marketing pieces that create interest or just relay facts? Does your home have "curb appeal" or are there overgrown bushes against the house, a messy roof and stuff strewn around the yard? Is your home ready to show on short notice or do you have severe limitations that are telling buyers and agents, don't bother? Finally, compared to the other homes in your market segment of similar age, size and condition are you a good value? Buyer's don't want to clean up other peoples messes or look past the deferred maintenance a home may need and they certainly won't just "make an offer" if the home isn't compelling for the price.
If you get your home sold, by addressing any of the issues above that require it, buying the new one will be easy.
0 votes Thank Flag Link Fri Oct 26, 2012
Making a contingency offer on your home selling is one way, but all that means is you and the sellers of the new home have agreed on pricing and terms. BUT if someone else comes along before you sell your home, you will have a certain amount of time ( usually no more than 72 hours) to either buy the home or lose it. First of all, do you qualify to purchase the new home without selling your current home? If so, do you have enough money to sustain two mortgages in the event your current home doesn't sell within a certain period of time?
Maybe the sellers of the new home would do a lease agreement and give you a year to sell. We actually just did this ourselves. We found a perfect home, put our home on the market, did a lease purchase agreement. It took over a year to sell our current home and it appraised "under" the amount owed, so we took a loss in order to sell it.
Only make this decision to move if you have the means to sustain yourselves, or you could find yourselves in a bigtime financial crunch.
0 votes Thank Flag Link Fri Oct 26, 2012
You could do a bridge loan, local banks still have these, but only if you can afford both payments. I just did this myself and it is a workable solution. If you'd like more info let me know. 865-584-9500.
0 votes Thank Flag Link Fri Oct 26, 2012
A lot will depend on whether or not you will qualify for two mortgages at the same time. Speaking to a loan officer should be your very first step in the progress.
0 votes Thank Flag Link Fri Oct 26, 2012
In today' s market, the hardest thing to do is sell. Buyers are limited, inventory is high, and as a result, buyers want a deal. You can put a purchase offer that is contingent on you selling your home. However, the sellers may not see that as a desirable option, and will likely get rejected. I would recommend lowering house even more to get it sold quicker, offer a higher cooperating compensation to the buying agent. Or even offer a bonus if sold in next 30 or 60 days. Do one or all of these. Yes it will cut into your equity, but is sure to expedite the sale in a slow market.

Dustin Teske
Coldwell Banker Wallace & Wallace
865-257-1448
0 votes Thank Flag Link Fri Oct 26, 2012
Belinda,

I am actually writing an offer this morning for a buyer that has an existing home to sell. We are writing their offer to purchase the new home contingent on their existing home selling. This allows them to have the first shot at purchasing the new home, should we sell their current home in the contracts time frame.
Your home is a desirable floor plan, in a sought after area; have you considered listing it with a REALTOR? Please feel free to look at my listings and notice the wide angle photography that shows off the room sizes; I have 2 more of my listings closing in the next 2 weeks, including one that was listed for nearly a year with another agent, that I had under contract in less than a month with my marketing plan.

What you are asking about is a common issue that home buyers run into, but it is easy to resolve.

Please read my reviews and give me a call/text!

Ray Gaudet
Affiliate Broker
Realty Executives
865-748-3346-CELL
0 votes Thank Flag Link Fri Oct 26, 2012
First, you have to review your finances. If you purchase the home, would you be able to afford or be comfortable carrying two mortgages when the payment for the new home becomes due.

Second, check with a local loan officer to see if you can qualify to carry two mortgages with the down payment you have available to dispose of.

Best of Luck.
0 votes Thank Flag Link Fri Oct 26, 2012
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