Home Selling in 18045>Question Details

Marcr, Home Seller in 18045

We are in the middle of relocating and waiting for our house to sell. How long should be wait before we look at a short sale?

Asked by Marcr, 18045 Fri Sep 10, 2010

We are looking at buying a home in the city we are relocating to, but the kicker is we haven't sold our other house yet and need the equity for a down payment. We can't afford to pay 2 mortagages either. What options do we have? I was thinking of maybe making an offer on a house we like with a 90-day close and hoping for the best.

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Your new mortgage might be contingent on you selling your present home so I would check with your mortgage broker first. If you were my client I wouldn't advise buying without selling first if you can't afford the possibility of two mortgages. If you want to move ahead with a new home make sure the home you are selling is priced correctly.
1 vote Thank Flag Link Fri May 18, 2012
You first have to look at how long your house has been on the market, how many showings are you getting per week and what is the feedback from those that have visited your home. Perhaps you need a price adjustment. Personally I would go the safe route and sell first and buy thereafter. If you need to put things in storage and take a short term rental then do it. Don't buy until you have your down money in hand because you will be in a stronger negotiating position to purchase your next home. Be brave, be smart, and stick to your plan.
0 votes Thank Flag Link Fri May 18, 2012
You can always put in an offer with a home sale contingency. If a seller is willing to do this they usually will want to keep the home on the market, and give you the first right of refusal should another offer come in. This could work for you or against you. It is good in that the seller can't take another contract that also would have a home sale contingency attached to it. On the other hand if someone comes in with an offer without the home sale contingency you could loose the home if you don't use your first right of refusal and buy the home. If this happens it can be very disappointing, because by this time you're usually very emotionally attached to the home.
0 votes Thank Flag Link Tue May 24, 2011
Marcr
I understand that you want to get the timing right but you really should wait. Legally you would need to disclose that there is a contingency that your house sells. The problem with that is, doubtful anyone will accept an offer with that contingency. It would be hard enough to get the offer accepted if your house was in escrow.
I know some buyers that wanted to move here thinking their house would sell almost right away, a year later they still have not sold it. I recommend you have patience and when you get your house in escrow then perhaps you will be in a better contingency situation.

Good Luck!!!

Kindest Regards,
Dianne Hicks
Web Reference: http://www.di4homes.com
0 votes Thank Flag Link Sat Sep 11, 2010
The "hoping for the best" strategy rarely ends in successfully reaching your goal...

Each of the first six answers cover many of the considerations that may impact your situation.

I think you have 3-4 possible options... Plan A, Plan B, ...Plan D to guide you to your goal.

Plan A would be to get the details of how much equity you need for your new home, how much do you have in your current home, etc. and create a marketing plan to list your current home. Plan A should also contain a time-line for possible price adjustments, researching whether your budget can handle a rental in your new location, etc. The continuing research would help you to define & update Plan B, C, etc.

Then at the end of the pre-determined Plan A time-line you would move on to Plan B, etc.

Good luck ! Joe K.
0 votes Thank Flag Link Sat Sep 11, 2010
You need to know that your idea is not original. As a matter of fact, you are actually contemplating loan fraud...and a loan officer is not going to happily help you accomplish that.

1. You need to qualify for the purchase of the new home. The lender is going to ask you "what will happen to your current home?" knowing that if you are not going to qualify for the loan without selling it, it is something to be watched.

2. "We need the equity" is a lot different than "we cannot afford two mortgage payments" to a loan officer. The first says that there will be proceeds from the sale, so the loan officer is going to explore how equity there will be...and with desktop modeling with find out instantly if you are optimistic....or clueless.

3. "I was thinking of making an offer on a house we like"....what kind of offer....a contingent offer.....that you want the seller to wait until you sell your home? In order to use the equity? The seller, and their Realtor, if they have half a brain, are going to ask you to provide a letter of pre-approval...which the lender will not be able to produce unless you sell your current home.

4. Smart Realtors are well-aware of "rats living a sinking ship) and trying to buy one house before they allow there current home to be foreclosed...and that is called "loan fraud".

I recommend taking a strong dose of reality and realizing that if you do need to in fact short sell your current residence, you will not be able to buy for two years. If you do, and they find out, it is loan fraud for you. What will your new employer think about that?

Good luck/
0 votes Thank Flag Link Fri Sep 10, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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You really can't (or shouldn't) make an offer if you have a house you need to sell first. Any house-sale contingency will cause most sellers to reject your offer.

Unless you are qualified (and willing) to buy withut selling - you need to sell first - you really don't have any other option. You can't make an offer, and "hope for the best".

It may not be what you want o hear, but it is reality.

Perhaps you should consider renting first in your new city while wating for the house to sell. The good news in doing that is you can get a sense of the new location before committing to a home purchase. That might be the best way to go.

Good luck...........
0 votes Thank Flag Link Fri Sep 10, 2010
You would be wise to sell before you buy. If you choose to make an offer, then I would recommend that you include a home sale contingency rather than "hoping for the best".

Talk with the agent on your current home about the list price - consider adjusting it downward to attract attention and more importantly an offer.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Sep 10, 2010
The problem you will have in a short sale transaction is that you will not be a ready, willing, and able buyer. The bank typically is only going to approve an offer with a 30 day window or less to close. If the short gets approved, you may not be in a position to buy it. I have never heard of a bank accepting a home sale contingent deal. You might be better off making an offer on a non short sale home with a right of first refusal clause. This allows you to stake claim to property and still have it be home sale contingent. If another buyer made an offer you would at least have the right to waive the contingency. Talk with your agent and/or your attorney, but we employ that strategy often and it might work well in your situation. Hope that helps.
0 votes Thank Flag Link Fri Sep 10, 2010
It sounds like you already have your home listed for sale. I would ask to see recent "comps' for your home and work with your Realtor to price your home slightly under market value to sell. If you have your home listed as For Sale By Owner" please give me a call. Before you consider a short sale, you should consult your financial advisor or tax consultant. This could prevent you from buying a home where you are relocating.
Web Reference: http://www.debiandrews.com
0 votes Thank Flag Link Fri Sep 10, 2010
Short sales can be tricky...they have gotten better on closing if the agents involved know the process. Do you need me to refer you to a top-producing agent in your area? I have had one short sale that we got done in 45 days but I have had another that took about 5 months! The bank can have a lot to do with it as well. The best thing to do is try to coordinate those closings so that you do not have to move twice. A contingency offer would also work if you are working with an individual. Banks normally will not look at contingent offers. I hope this helps! Please let me know if you need anything else!

Sarah Padgett
Century 21 Judge Fite
cell: 817-614-6390 (call or text)
sarahpsellshouses@gmail.com
0 votes Thank Flag Link Fri Sep 10, 2010
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