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Klutts Real Estate
Yes, your finances are the driving matter, but it is unlikely that making an offer is the next step.
If you have your home priced reasonably, the market is about to take its normal upswing in March-April.
However, if you don't have any solid bites but do have nibbles, that means your close to the right price. If you do spot a replacement (the second home) where and as you like it, make an offer, but try to get it contingent on the sale of your current home.
I'm sorry, if you're like most people, you can't carry two mortgages at once, and the banks don't really let you do that anymore. As to using rental income, the banks want you to have experience in that business, have a lease in place and they won't let you use more than 75% of the rent to cover your existing mortgage payment - an unlikely solution.
You could store your stuff or rent a place, but the point is to get your old place sold. And you want it pending with a solid contract or actually sold and you moved out first, before looking too seriously for a new home. There are 7 months of inventory on the market right now, so it shouldn't be hard to find one to buy after selling. By the way, you probably will be downsizing your mortgage - getting more for your bucks.
I'd check out the market in your current neighborhood and your target area. Here is a place to get a free report with prices and trends emailed to you: http://www.DallasHomeValueReport.info
1. First of all, price your existing home to sell is the most important way to start.
2. Second, if it doesn't sell and you really have to move, you can always lease your home out. There is the
possibility that an investor could buy with the tenant in place providing they would honor the length of the
existing lease. Also, your tenant may want the 'First Right of Refusal' to purchase say in 6-12 months.
3. Third, If you have good credit and some Cash to put down, you could still purchase another home with a
tenant and show the Lease Amount as income. The lender will be the most important of this transaction.
You will have to think "outside of the box" but it is possible and these situations come up more than you may realize.
Coldwell Banker Apex Rockwall
Can you carry two mortgages?
If you cannot carry two mortgages, you can sell existing forst then move everything into PODS and just live out of a suitcase at an extended stay hotel. Once you purchase the new home, PODS brings your furniture. This option keeps you from having to move stuff twice. The money saved from your old mortgage payment might cover all of these costs..... You should look into it.
I have had clients do this.
I look forward to more answers from some of the realtors here.
You don't have to be stuck - there is a way to solve your issue.
In general, here is the strategy that I recommend to Buyers in your position.
Step 1. Determine your finances - this dirves the rest of the equation. You need to know whether or not you can qualify for two mortgages simultaneously. Or you need to determine that you have cash sitting in the bank to write a check for the new house (most people in this position don't ask the question you just asked - they just buy the new house).
If you can own two houses at the same time:
Step 2 Make an offer on the new house. As soon as your deal is solid, you put your old house on the market.
Step 3. If your old house has not sold by XX date, then consider renting and developing a positive cash flow stream from the property until the market appreciates.
If you can not own two houses at the same time:
Step 2. Put your home on the market.
Step 3. Look for homes to move into. Keep a short list of homes that you like - generally 2-3. When one of them sells, replace it on the list.
Step 4. Negotiate the contract for the sale of your home,
Step 5. Once you have a contract on your existing home, make an offer on the best prospect on your list. Work the timing of the closing of this property to match the closing of the sale of your home.
There are many moving parts to this equation, and at times it can be difficult to keep things nicely aligned, but remember, there is always a solution to the issue. It also helps not to get too smitten by the new homes that you find - much easier for me to say than do when I am personally in the market, but your agent can help you with this.
To really get this humming, you have to be very realistic about how you price your current home. Many people are disappointed with market prices at when they go to list thier home - they feel like they should get more. Remember, the home that you are buying is also being affected by the same market conditions - it is on sale! Money is also on sale, as mortgage rates are about as low as they have ever been, even with recent minor upticks. Your purchase dollar is going to go a lot further in this market than it would have just a couple of years ago. It may well be worth settling for a little less on the sales price of your current home to get you where you want to be, when you want to be there.
Alternatively, you can lease your existing property, and use the monthly rent to pay your current mortgage. Then you can either rent or buy in the area where you would like to live. There are always solutions!
If you have questions, please give me a call. I'd love to help you through this process.
Keller Williams Dallas City Center
1) Your first option would be to purchase the home and carry two mortgages. This will depend on whether or not a lender will qualify you to purchase without selling your current house and whether you have the financial means to carry both mortgages until your current home sells.
2) Your other option may be to write an offer on a home that is contingent upon the sale of your home. This will allow you to move forward on the sale process while you are still trying to find a buyer for your home. The great part about the contingency is that if your home does not sell, you will not be obligated to purchase the other.
I hope this helps and please let me know if I can answer any further questions.
2. Ask your Real Estate agent to write a contract on the new house "Contingent on the sale of your home within xx days". Your agent will know exactly how to put this into the contract for sale. The owner will be presented with the offer and the stipulation for their consideration. The owner may accept your offer but include a 72-hour kick-out clause allowing the owner to continue marketing the property for another offer. If another offer comes in, you would have 3 days to remove the home-sale contingency or possibly lose the contract to purchase it.