Home Buying in Florida>Question Details

Rebecca, Home Buyer in 32615

can I buy a home while waiting for my present home to sell?

Asked by Rebecca, 32615 Sun Apr 13, 2008

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Answers

12
Of course you can. I am a real estate investor and would be happy to discuss your real estate questions, comments and/or concerns. Best, Mark Palace
1 vote Thank Flag Link Wed Apr 23, 2008
My answer is actually a question..... What if I have a reverse mortgage and still have A LOT of equity left over even after paying off the reverse mortgage and, that being said, how does one go about buying a new house with a reverse mortgage in the equation?
0 votes Thank Flag Link Mon Sep 8, 2014
Yes, you can depending on several factors. Are you able to financially handle the burden of 2 mortgages? It is vey unlikely that a seller would remove their home from the market contingent on you selling your home. They are in the same boat as you are! If you had a firm contract on your home that was pending sale, sometimes a seller will accept the successful closing of your home on XX-XX-XX date as a contingency to the buying of their home, as long as the closing date was not too far off. In these days, it is definitely a buyers market and sellers need to recognize that. There are going to be many times when a buyer will want to "low ball" an offer on a home. They want to "test the waters" and see what they can get. The sellers first instinct may be to get offended, as their home and it's value is of course, very important and emotional to them. Everyone has to take a step back. Get objective, be patient, try to compromise, and find common areas both parties are willing to compromise on. You may be surprised that everyone will finally come close to terms on price and conditions.
0 votes Thank Flag Link Wed Apr 23, 2008
Perhaps I should clarify one thing that may change your answer(s). Our home is free and clear of payments.
Flag Tue Sep 9, 2014
Yes, But, l would be cautious, pending on the situation. I if the purchase and sale are loans and you will have a payment on both homes at the same time, I woud say that as long as your lender can obtain a loan for you and are able to sustain both properties montly mortgages for a while then You would not have to do an offer contingent upon the sale of your home.

Most sellers in todays market may be more willing to do a contingency, that however may not guaranty you the home, both Buyer and the seller will have to negotiate how long the contingency will be and in most cases they will only give the buyer a 24 hour notice and first right of refusing the purchase if they " the seller" recieve s another offer, usually a better one and you do not release your sale contingency in the allowed time and continue witht he purchase , then the home would could go to the next buyer.
0 votes Thank Flag Link Wed Apr 16, 2008
Depends on your available loan amount or paying cash. I've never wrote a contract, contingent upon sale of another property. It's very rare in our area of Sarasota / Manatee areas.
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Tue Apr 15, 2008
You can buy a home as long as your mortgage consultant can pre approve you and you are happy with the decisison.
0 votes Thank Flag Link Tue Apr 15, 2008
You can but most sellers are not willing to have their house off the market while your waiting for yours to sell. Check with the bank and get a bridge loan if you qualify for two home loans. Or take the equity out of your current home and pay cash for the other home. These are Both Very Risky, the best way is to reduce your sale price on your current house and get the best price now so you can move on sooner. Good luck
Any more questions email me at: loriannmertens@yahoo.com
0 votes Thank Flag Link Mon Apr 14, 2008
In answer to your question about purchasing a home while yours is selling, I guess really you and your lender are the only people that can answer this question. If you have a good strong credit history and a good income, then a bridge loan could work for you. One question you would need to ask yourself is how long am I willing to make payment on 2 homes while mine is selling? If you expect a fast sell or money isn't a problem, then a bridge loan should work great. Talk to your lender and let them explain how a bridge loan works and ask if you would qualify.
0 votes Thank Flag Link Sun Apr 13, 2008
You can buy a home while waiting for your present home to sell. You must be able to qualify for the new home payment with the existing home payment in place. Are you in a position to do that? Does that mean that you would qualify for less of a home with the current payment on your credit? What is the current market time in your area? How long has your home already been on the market? How many others like it are for sale? Can you handle making 2 mortgage payments? And what if your existing home doesn't sell for 6 months or doesn't sell at all? You must have a course of action in mind in case that happens.

The only way to safely consider that option is to contract the new property with a contingency that your home sells, as previously mentioned. This is your protection in case yours doesn't sell. However, the owners that will accept an offer like that will probably put some time stipulation on it, in which your home needs to sell.

I know of a family that purchased another home over 9 months ago, with the hopes of an immediate sale on their existing property. They have had no offers on their previous property and based on the mortgage balance, cannot reduce it low enough to sell. They can no longer make two house payments either. We have heard the same story time and time again.

So be very careful..
0 votes Thank Flag Link Sun Apr 13, 2008
If you can comfortably afford having both homes parallel for a while, yes.
If you want to make the purchase contingent on a sale first, follow Marlene's advice. However, if the contingency gets rejected by the seller, walk. You do not want to be stuck with two homes, do you?
My advice: I would not go route #1; too risky and too potentially costly. There is a lot of inventory out there, and if the seller can't accomodate you in route #2, you certainly will find another property after yours has sold.
Good luck!
0 votes Thank Flag Link Sun Apr 13, 2008
You can do a contract with a contingency clause that makes the purchase dependent on the sale of your home. If you really want to sell and buy something else, price is paramount. Work with your realtor to make sure your price is competitive so you can move forward. Remember that the buyer of your property is probably looking for the same sort of bargain you are and price accordingly.
Web Reference: http://www.MykeTriebold.com
0 votes Thank Flag Link Sun Apr 13, 2008
Rebecca,
of course you can if you are financial able to. Tell me where in FL you would like to purchase. Email me at terry@marianschaffer.com
The Schaffer Realty Group
http://www.marianschafferrealty.com
877-886-8388
0 votes Thank Flag Link Sun Apr 13, 2008
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