Dee... I see soooo many people buying another home before the previous one sells.... Know what I see most come from this? Pressure. If I were your Realtor... If I were your Friend... If I were someone in your family... I would talk you out of inviting additional pressure to your life.... life is tough enough! If you are really set on doing this -- let me do a study for you on your property... and take a hard look on what you can expect. Parts of Garland... specific price points... sell fairly well due to convenience to the highways there...so it may not be too much of a gamble. Give me a shout and we'll take it from there.

I would be more than willing list your home with a 4% listing with a very flexible cancellation policy and see if we can get some good interest or possibly even find a renter for your home so you can purchase the home of your dreams and either sell yours or rent it and hopefully make a couple hundred bucks a month. Call me and we can make something work where you can minimize your risk of getting stuck.

RJ Avery
214-682-0598
rj.avery@att.net

You can afford to carry 2 mortgages for a 'while'.

Don't let someone talk you into this..... especially someone with a commission on the deal!!!!!!!!

Only YOU can decide

SUGGESTION: why wait if it's your prefect home you can carry 2 mortgages, why not lease your other home if you feel you cant sell it, perhaps secure a lease purchase tenant. Contact my office if I can assist 972-699-9111
http://www.lynn911.com http://www.homes-for-sale-dallas.com

If you are not already working with a realtor, get one (and I'd like to be the first person you interview and the one you hire.)

Check with a mortgage broker to get yourself qualified for another mortgage. It's nice that you think you can afford to carry two mortgages. It's even better if the lender agrees with you and will preapprove you. Make certain it is understood that you will be carrying two mortgages. It will only come around to bite you if you fudge on the truth.

Other than the issue of financing, the decision is up to you.

If your desire is to not keep your current home, put it on the market as soon as possible. It is not uncommon these days for people to put their home up for sale or for lease at the same time if they anticipate a slow sales process. Are you willing to lease the property, or do you want an out and out sale?

The real estate market is unpredictable. We are fortunate in the Metroplex to be less effected by the problems other regions are having. Good pricing is one of the keys to selling and selling quickly.

I very much hate to see people pass on their dream home. But I have seen what happpens to people when that current one doesn't sell. It pretty much wrecks your savings and creit.
I think that only you can answer the buying question.... but you really need to look ahead and consider the downsides.
I am sure that the realtors here can tell you more about home prices where you live and how that will answer part of your question.
Good luck!!!

SELL first, then look and buy once you get a contract and are confident that it will close.

In this market you may get a little less money for the current home,but hopefully can get even a better deal on the next house. This is a great time for move up buyers.

Get really agressive with selling the current one both price and marketing wise and then go after the DREAM.

Hi Dee:

I think you will need to sit-down, put emotion aside and put things down on paper and pen and decide whether and for how long you can afford carrying two homes. You also have to use the worst case scenario before you decide what to do.

If you carry two mortgages, how much negative do you have each month, how long can you do that for? What happens if your home does not sell past that time frame? Do you plan or are you able to drop price on your home in order to sell? Will you be forced to take an unexpected price drop so you can get out from that home and ended up losing a lot more than you plan to? Will you be behind on the mortgages and ended up losing one or both homes to the lenders?

In general, if you are in the same location; the appreciate rate and depreciation rate should be similar between two level of homes, but sometimes it could be quite different between starter homes and luxury properties, homes on the lake or not, ..etc. You need to understand all that before you know where the house (either one) will increase of decrease more than the other.

Call your Realtor and ask him/her to give you a detailed analysis on the situation and then decide from there.

Make it a business matter, not just an emotional matter.

Best,
Sylvia Barry
Marin Realtor .

Dee
I am curious what other advice you are receiving from your Realtor?
Some certainties you should be aware:
1. No one knows the future with certainty.
2. All things being equal, if you are upsizing to your "perfect home", even if you lose a little in the sale, you will be able to negotiate a better price on the purchase, with a lower tax basis and the certainty of current interest rates and terms.
3. Who knows when you will find the next "perfect home"? I recommend considering the options carefully, then moving forward decisively. The cost of carrying two mortages is not just principle and interest. it is also taxes, depreciation, insurance, and maintenance.

However, the most important is LOST OPPORTUNITY. What other opportunities might come up? You might want to talk with your CPA or financial planner. How might this affect your retirement plans?

I would suggest considering retaining your current home for a rental property. I cannot run all the numbers here, but your CPA can. Please consider the option of creating an additional portion of your retirement plan.

If you need an expert Realtor in your area I would happy to recommend one to you. Interview three, pick the best one. Measure twice, and cut once.

You might want to read the Millionaire Real Estate Investor

Good luck!

Don't carry two mortgages. You don't know what the future could bring. As I mentioned in an different post, my spouse had cancer and we racked up huge medical bills even with insurance (not to mention the issue of lost wages.)

Wait until you sell your home.

Dee, what you lose by selling you can more than make in by buying in this market. Sellers right now are not getting top dollar so get a net sheet done by a realtor to see what your bottom line will be. If the bottom line is something you can live with, then go for your dream home and get a strong negotiator for an excellent deal.

Also you can consider leasing your present home, until the sellers market improves. Let me know if I can be of any further help.

Valerie Alfred

Hi Dee,

The answer in already in your question, Your Dream home found. if this is really how you feel about this house then go for it. In the meanwhile put the one you are currently living on the market making sure it will close after you get the other one.
Good luck.
Leonardo

Hi Dee, go for it. The reason I say this is because you said you found your dream home and that's what it's all about.

If you are going to make the move, make sure to hire a knowledgeable Realtor who knows the area and can tell you what your home is worth on a worse case basis.

You can never time a market, but it's a great time to buy if you are moving up in price. I would say wait to purchase if you were buying down.

Best.

Dave Tapper
Burlingme Ca.

Hi Dee,
Real Estate is very fickle. You never really know what is going to happen until it has been happening for a few months. There are certainly pockets of communities throughout the metro area that sustain value, or even increase. But there are also areas that continue to fall.

My advice is this: If you are ready willing and able to buy now, go for it! Will you find this home in a year? Possibly. But the point is, you have found it now and want it now. I would snag it.

Now, what to do about your current home? You should get it on the market immediately and have a Realtor price it competitively so that it sells fast. You place an offer on your dream home contingent upon closing your original home and you're all set. Keep in mind, market prices fluctuate frequently.

Depending on the market condition, time of year, overall buying mood, etc. you may or may not get more out of your home in a year. Your best bet is to assess a range of how much you need to get out of your home, or how much you are comfortable accepting and be willing to realize that your home may not be worth what you want it to be worth. This way, you can seriously consider offers within your acceptable range.

If you have any further questions, please feel free to contact me.