Home Buying in Portland>Question Details

Mike, Both Buyer and Seller in Gresham, OR

Buy house of dreams now...sell existing house later....must be LOW risk.

Asked by Mike, Gresham, OR Sun Mar 30, 2008

Are there any safe ways to buy the house of our dreams now.....before selling existing house. The house we currently live in has been listed since November, the house we want just dropped 25K in price....................we are pretty sure it will sell at that price. Can't make two mortgage payments and our down payment is tied up in the equity.

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Moab11,

**..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.


:^)
2 votes Thank Flag Link Mon Mar 31, 2008
Mike ~ I truly understand your pain. As others have mentioned before, however, this is a gamble that I would never advise my clients to take. I am a very ewthical loan consultant. Sadly, though, there are some out there who may still tellyou that they have a low risk or no rish opportunity for you.

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...
1 vote Thank Flag Link Tue Apr 1, 2008
Price your house to sell and be realistic. What has your realtor said about your price? Sounds like you need to reduce your price and sell it and buy the next house while the rates are down. If rates go up 1/2-1% the buyers trying to buy your house might be priced out and that will not allow you to sell. You are in a beauty context with a price war on your house. If you have lived in your house more than 3 years you probably have some equity and if you have a great location you probably have maybe 25% equity. Price it to sell in the next 30 days.
0 votes Thank Flag Link Tue Jun 17, 2008
In this market but at anytime it is best to sell before you buy. Then at least you know what you have to work with. It also puts you in control of a closing date
0 votes Thank Flag Link Mon Mar 31, 2008
you want to have your cake and eat it too
be happy with your house
you like it, thats why you bought it
quit going to open houses
just makes you want something better
kinda like dreaming
quit dreaming

anyways

good luck
0 votes Thank Flag Link Mon Mar 31, 2008
There will always be deals out there. After 19 years as a Realtor, I have seen more than one buyer get into financial trouble because they put the cart before the horse and over extend themselves. If you are not in a position to make two house payments... you already know what you need to do. Yes, there are several options that might put you into your 'dream home,' and several of them - while legal - can put you into a very precarious financial position.

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!
0 votes Thank Flag Link Mon Mar 31, 2008
You have options but....The only safe way to do this is to find ways without risking the family finances. Before I give this answer let me first say you should have representation in the transaction by a licensed Realtor (c). I would be happy represent you as Buyer Agent free of charge on your behalf.

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
Web Reference: http://www.junelizotte.com
0 votes Thank Flag Link Mon Mar 31, 2008
Moab...

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.

Best wishes;

Dirk Knudsen
Re\Max Metro
Re\Max Hall of Fame
#1 Re\Max Team in Oregon
503-799-8383
Web Reference: http://www.nwhomecenter.com
0 votes Thank Flag Link Sun Mar 30, 2008
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