Home Buying in 46236>Question Details

Rick Artusi, Both Buyer and Seller in Indianapolis, IN

my house is not sold yet, but i want to buy the house of my dreams what can i do

Asked by Rick Artusi, Indianapolis, IN Mon Jan 14, 2008

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The classic Catch 22 that many sellers run into. You want to get the highest price for your home you have for sale, yet you have a home you want to buy for the best price. Unfortunately, the two usually don't mix if you buy before you sell.

As you probably know, it is a buyers market right now in the Indianapolis area. My company not only is a full service real estate office, we also offer property management services and manage almost 300 single family homes in the Indianapolis and surrounding area. My company does something unique that no other company in Indiana does....guaranteed rent program for buyers of a home they want to purchase.

Basically it allows you to purchase your new home without worrying about selling your home for less then you want right now. My company will guarantee to get your home rented or we will pay your mortgage on that home. Certain restrictions apply but give me a call or an email and I can get you more details. In 3 years of doing this type of guarantee, I have never had to pay a mortgage because our unique marketing plan gets your home rented quickly, usually we have it rented before you even more into your new home.

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Web Reference: http://www.rentindynow.com
1 vote Thank Flag Link Fri Feb 1, 2008
Rick-all good advice. I am currently in your situation, have a nice house now but want another one which I like better. which is curently under construction. I have chosen to sell mine first, or at least to get a strong contract before purchasing another. I actually was in the situation of having two personal homes for sale and had put a deposit down on a another new home earlier last year. I was sweating bullets to get the other two sold before having to proceed with the third. I was lucky and it worked out, but in this economic climate, I would not advise going throught that again. Sell first-then buy. There could always be another "DREAM" home out there. Just my 2 cents. Good Luck!
1 vote Thank Flag Link Tue Jan 15, 2008
Depending on your financial situation, you could get a bridge loan from a bank to cover your payments as you make your move. It is very important that IF your home is listed, you talk with your agent and ensure it is priced right for the market. The 4 major inputs to a sale of the home are (1) condition, (2) neighborhood, (3) marketing and (4) price. Some of those inputs can't be changed; so if your home is in good condition you may have to adjust your price. Contact your agent and discuss options. Good luck and hope you achieve your dream!
Web Reference: http://www.KSHomeSales.com
1 vote Thank Flag Link Mon Jan 14, 2008
Good advice below. However, you need to supply more information about your finances, prices of the houses, etc. And also--how long has your house been on the market? The other advice about making the purchase of the new home contingent on the sale of the current one is fine, but the owner of your dream home won't likely accept your offer if your house has been on the market for, say, 240 days. Anything over 100 indicates it might take quite a while to sell.

As I said, the other advice is good. But, in today's market, I'd strongly advise selling your current home first.

Good luck.
0 votes Thank Flag Link Tue Jan 15, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
I have assisted a few buyers in this situation. Nobody wants to carry a double mortgage, if it is at all possible instead of offering a 1st right you can ask for a delayed closing- (90 days/negotiable). Of course there is always a 1st right offer which prevents danger ahead of carrying two mortgages.
Delayed closings work, you should have better luck selling this time of year as the market has been active beginning in January...
0 votes Thank Flag Link Tue Jan 15, 2008
Rick - would you be willing, and are you in a strong enough financial position to rent your existing home? Is the rental market strong enough to allow you to rent the home on a positive or slightly negative cash flow basis?

If so, talk to your lender to see if it is financially feasible for you to do so - you may need a signed lease before you can close on the new home and the lender may want you to have some cash set aside to cover a few months of vacancy each year.

Being a landlord has its own set of challenges but with a good tenant, they may be minimal - some day the market will be stronger for Sellers and then you could sell - in the meantime, maybe your tenant will want to buy the home - best of luck - keep us posted.
0 votes Thank Flag Link Mon Jan 14, 2008
This is every buyer’s nightmare. Without knowing more about your specific situation, it’s hard to give you a specific answer. But generally speaking, I would say the answer is every seller’s nightmare, cutting the price you are asking for your current home.

Additionally, you could have your agent write an offer based on the contingency of selling your existing home. They might, that’s MIGHT, accept the offer with certain time considerations. Or, you could have your agent try and get a first right and put up significant money to show the seller of your dream home you are serious. Just understand, it does little to secure the new home, it may buy you some time. If your situation hasn’t changed by the time they have another acceptable offer, you’ll have to find another dream home.

Best of luck to you in realizing your dream!
0 votes Thank Flag Link Mon Jan 14, 2008
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