Home Buying in Escondido>Question Details

MLC, Home Buyer in Escondido, CA

We would like to purchase a new home in Escondido. Currently, we own a 2 bedroom condo in Escondido. Should we sell or just save the 20% down payment?

Asked by MLC, Escondido, CA Thu May 9, 2013

The condo has no mortgage. How long will it take to sell? Can I sell only if I can find a home first? Please let me know what you think

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12
Which condo community? If it is priced right, it will sell before it is on the market. I have investors who will buy based on my recommendation. The "best" thing to do will depend on your goal. Having a property free and clear is perfect to rent out or tax defer exchange, but then it depends on the HOA fees and other factors. Feel free to contact me to further discuss.
0 votes Thank Flag Link Mon Jun 3, 2013
Hi,
That's a tough decision which we help clients make on a regular basis. There are a lot of variables that come into play here and I wouldn't feel comfortable giving advice without knowing all the details. So if you are still up in the air, feel free to contact me at 888-503-3117 to discuss.
However the market has bounced back and we are starting to see a sellers market, so if you were in need of selling... now would be the right time. You can also look into other options to obtain the 20% for down payment such as refinancing your current property, renting it out and so on... however I would need to know more details to help you make the right decision. Here is also a recent blog that talks about San Diego County home prices that you may want to read. Best of luck ;-)
0 votes Thank Flag Link Wed May 29, 2013
I've read all the responses and no one mentioned financing. Essentially, since you own the condo free and clear the only "debt" to be services (for loan qualifying on your new purchase loan) would be the Monthly Taxes, Insurance and HOA Fees).

If you have the 20% to put down on a new purchase then there would be no need to sell your condo first before purchasing a new home. You would thereby avoid the potential homelessness that might result from selling your condo before buying and moving into your new home.

If you do not have the 20% to put down on a new purchase, then the advice given by the agents in answer to your question are self-explanatory.

However, as for securing financing on your new purchase, a 20% down payment would be best, but you could also look to lower down payment programs (FHA=3.50%), to make the move before selling your condo, and then after escrow closes and you could sell your condo and pay the loan off (no prepayment penalty). Although you might want to look to a conventional loan (3% down), as FHA loans have very high up-front (MIP) costs.

You would not want to write an offer on a new purchase contingent on the sale of your current home, as with the demand for housing being high and rising, your offer would not get as much consideration.

Although one final note. In the current tight market, offers with large down payments (and cash offers) do get considered first by sellers when looking at multiple offers (which is the status quo at he present time..seller's market).

Just some food for thought. Wishing you the best.
0 votes Thank Flag Link Sun May 12, 2013
I've read all the responses and no one mentioned financing. Essentially, since you own the condo free and clear the only "debt" to be services (for loan qualifying on your new purchase loan) would be the Monthly Taxes, Insurance and HOA Fees).

If you have the 20% to put down on a new purchase then there would be no need to sell your condo first before purchasing a new home. You would thereby avoid the potential homelessness that might result from selling your condo before buying and moving into your new home.

If you do not have the 20% to put down on a new purchase, then the advice given by the agents in answer to your question are self-explanatory.

However, as for securing financing on your new purchase, a 20% down payment would be best, but you could also look to lower down payment programs (FHA=3.50%), to make the move before selling your condo, and then after escrow closes and you could sell your condo and pay the loan off (no prepayment penalty). Although you might want to look to a conventional loan (3% down), as FHA loans have very high up-front (MIP) costs.

You would not want to write an offer on a new purchase contingent on the sale of your current home, as with the demand for housing being high and rising, your offer would not get as much consideration.

Although one final note. In the current tight market, offers with large down payments (and cash offers) do get considered first by sellers when looking at multiple offers (which is the status quo at he present time..seller's market).

Just some food for thought. Wishing you the best.
0 votes Thank Flag Link Sun May 12, 2013
Many, perhaps most successful real estate investors began as what we call Situational Rental Owner. Read about the possibilities at our educational site RentSenseBlog.com then talk to Pam in our North County Office (858) 487-4004. Neil
0 votes Thank Flag Link Fri May 10, 2013
The good news is that It is a sellers market. Explore the options of what you can afford to buy before you sell. In this market you can get top dollar for your condo, but you will also have to pay top dollar to buy. It may be a good idea to sell first, rent for a while untill prices stabelize. Markets change every few years. Many people that did that have been able to pay cash for homes over the past 2 years when prices dropped. Please feel free to call should you have further questions.
Aurora
0 votes Thank Flag Link Fri May 10, 2013
Hi MLC,
My name is Ricki Lynn Miller. Thanks for using Trulia to ask your question.
Congrats on the paid off condo! You have accomplished quite a lot right there.
If you don't need to sell the condo to purchase your next home, have you thought about using the condo to leverage your next home's purchase? Talking to a lender first about your plans to move up can open up that dialogue and answer your questions about using the condo's equity for your next purchase.
The Real Estate Market is hot right now. Our lack of Inventory is driving the demand higher and higher with multiple offers and over list price offers. Selling your condo should be fairly easy, but making sure you’re not homeless in the process is my concern for you. You have the ability to sell your condo with the contingency of finding suitable housing. But as Lindsay said below, a rent back might be a thing to consider.
The good news is you have options, and that a good thing.
I would love to help you figure this out. Feel free to call me and we can discuss your options.
Thank You Again for using Trulia.
Blessings,
Realtor Ricki
0 votes Thank Flag Link Thu May 9, 2013
Feel free to call me. We purchase houses + condo's from our clients.
0 votes Thank Flag Link Thu May 9, 2013
Generally speaking, traditional wisdom is that you should sell first. In this market however, I would locate the house you want to buy first.

Do you need the funds from the condo in order to buy the house? The answer to this is important and will guide your actions.

Selling a condo in today's market should not take very long at all...there is so little in the lower price ranges that most condos sell quickly. I would make an offer on a home, get yourself into escrow (if you qualify for a pre-approval) and then get your condo sold.

I'd be delighted to personally assist you. Feel free contact me directly!

Cindy Davis, Broker
(619) 379-8616
0 votes Thank Flag Link Thu May 9, 2013
Hello MLC,

Your best bet is to sell now and rent back at no cost until you find something suitable, which might take a while. A couple of our buyers had to agree to a lease back to get what they wanted. Provided summer is here it should not be a problem if you have kids, the transition should go smooth. Expect to get top dollar for your condo and to pay top dollar for your purchase. We would love to help you and we are just around the corner, stop by and lets meet in person. Ambos hablamos espanol si usted se encuentra mas a gusto...

Julio + Lindsay
Broadpoint Properties
220 2nd Ave in Escondido
858-405-4057
0 votes Thank Flag Link Thu May 9, 2013
Hi Dear,
It all depends on your time line and how much can you put down now and income qualification. Selling your condo is the easy part. Market is very hot and you will get a very good deal to sell now. I love to work with you and give you the best advice you need. Please give me a call and will discuss more about your situation. Thanks Atifa 858-353-2196
0 votes Thank Flag Link Thu May 9, 2013
With the right agent and the right approach, you should be able to sell your condo very quickly at top dollar. You can make that sale contingent on finding a suitable home for you to buy. You should be looking for homes to buy now.

Know that commissions are negotiable and don't get ripped off by an agent who spins the "I earn every penny of my commission B.S." You should get a significant break on what you are being charged, but you may have to find an independent broker to get that break. You can pay thousands more in commissions, but you will not get any value for that. It is a seller's market and offers are coming in before the For Sale sign even gets in the window. It doesn't take any marketing or effort to make that happen. The buy side is where the hard work is these days.

I work throughout San Diego County and can teach you more about the truths of the industry if you like.

BeachBrokerBill
DRE 01775528
(760) 525-8698
Bill@coastalhomesofsandiego.com
0 votes Thank Flag Link Thu May 9, 2013
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