**..Can't make two mortgage payments and our down payment is tied up in the equity..**
You just answered your own question ...
Take your time and sell your existing home .. there's is no such thing as "house of our dreams", some are just different than others - and they come up everyday ...
In the meantime, this will give you time to study the market and get your research done ... by that time, you'll have found 4 or 5 "house of our dreams" ... then, you'll know what to pay.
The 2 most important things you need when buying real estate - 1.) accurate information .. 2.) patience.
Look long and look hard .. it can only save you thousands.
Keep in mind that if something seems too good to be true, it likely is. I would be happy to help you by looking over your financials to help you determine a realistic course of action. One that will bring you a dream home with your dream payments! :-)
Best Wishes to you...
Handle the sale of your first house first. The good news is: while you may have to reduce the price on the sale of your property, you will very likely make it up on the purchase of your new home.
Best of luck!
Option 1 that would allow you to purchase the home with the contingency of your home selling. With so much inventory on the market sellers are having a difficult time finding buyers and are more apt to allow a contingent offer. What this means is that you will need to list your home with a Realtor (if it's only for sale by owner now that won't fly). The reason I say this is because the listing agent (of the home you want) will tell the seller that unless buyer's home is listed on the RMLS with a motivated price it would not be a good idea to have his home taken off the Active status. The percentage of Unrepresented homes selling is very low compared to Listed homes. Only a potential buyer who is highly motivated to move his listed home would be a good candidate for seller to consider for his home sale.
A second option (a slim but possible one in a market like this) is a trade. Many agents are not familiar with this older form of negotiating. Seller may be motivated to negotiate a deal to 'buy' your house if you buy his. The deal should be negotiated with a professional Realtor (I would love to help you through this). I wouldn't recommend you allow the Seller's agent to represent you too as buyer. You need to have someone who will look out for your best interests and keep you from being taken advantage of. Your best interests are of high priority. That won't happen when an agent represents both the seller and the buyer in a single transaction. It's best to have two agents working on a transaction such as this. Seller(of the house you want) has his listing agent to help him with the purchase of your home, you should have your agent to help you with your purchase and with the sale of your house. Seller may like this option because if his home is higher priced than yours and yours is a good home and likely candidate for a reasonable sale then it may be one that he wouldn't mind considering for a short term investment He would want to be able to make some money on it so if you are motivated enough to make it worth his while in order to get the house you want , it could work.
A third option is for you to rent out your home and keep it rented for a while so you can show it isn't interfering with your income- to retain eligibility for the new purchase. If you have a lease with option to buy and allow the renter to have a portion of his rent set aside as down payment on the purchase (non-refundable of course) then you could very well qualify for the new home and still work both mortgage payments out. You would want to get the renter to qualify for the purchase if possible and could actually have the purchase negotiated to some degree in the rental docs. The docs would be drawn up professionally to cover your interests where the renter is concerned. I could give you recommendations for that. For more details please feel free to contact me via my web site link below. Let's get it done! Best to you. To see my quality service rating (data collected from my past clients by an independent research company) go to http://www.qualityservice.org type in my name June Lizotte and Oregon
Man I was out all day with 2 clients.... both in the same boat. The buying options out there are crazy. Such deals. I want to buy almost every deal I see. These prices are going to increase but the fact is it is hard to pull the trigger and be stuck with two payments. So let's review the options:
1: Sell yours..and Buy the other. This is the #1 way to go. Drop your price, double your marketing efforts, change Brokers, paint some rooms.... try whatever you can because with out a sale you are probably not really in the game.
2: Offer on a contingency.
3: Offer them a deposit to wait for you to sell.
4: Try for a Bridge Loan but that is hard to do.
5: Rent yours? Maybe you could refi. on an Interest only with a 3 year fixed rate?? That could make renting it easier.
6: Offer to sell you home on a lease option or a wrap around contract.
7: An equity trade might work but that can be a long shot.
8: Offer to by theirs and do a delayed closing...maybe a 120 close with a nonrefundable.
There are more ways.
I do not know about your home. At some point you have to sell or make a move. People are very nervous right now but I say.....there has to be a way. Take a hard look and take a leap.
I am around and we can help.
I am not #1 for no reason. Had to brag but it is a fact.
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