Home Selling in Tulsa>Question Details

Jj, Both Buyer and Seller in Jenks, OK

We want to buy a new home before selling ours? What is the best way to handle that or is it discouraged?

Asked by Jj, Jenks, OK Sat Apr 18, 2009

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JJ:

There have been many changes in the mortgage industry and standards are much higher than they were a year ago. Do this First, if you still owe on your current home you'll need to talk with a lender to see if you will qualify for a new loan while holding your current mortgage. If you do qualify and you don't mind paying for 2 mortgages at the same time... than go for it.

If you do not qualify for the 2 mortgages, than you will first have to put your current home on the market. I wouldn't be to worried about doing a contingency. It's very common and while there a risks associated with a contingency, there are risks with every Real Estate transaction.

Also, consider having your Realtor talk with local builders to see if they will work with contingency offers or some builders even have a purchase program for their new home buyers.
1 vote Thank Flag Link Sun Apr 19, 2009
Hey JJ:

Just curious to see what you decided to do and how it worked out for you. Would love to have an update posted. Thanks!

Jennifer Henning
0 votes Thank Flag Link Sat Aug 14, 2010
There are many things to consider when you are buying a house and trying to sell the one you own. Be sure to speak with a lender to see what you can qualify for and then find a local Realtor to help you figure out a strategy. I am with Coldwell Banker Select and believe we have the best marketing services offered and I could email you all the properties available in the area you are looking. I would be happy to help out. 918-313-0408

Here is a link with a couple of different views on this subject. Hope this helps and good luck.
0 votes Thank Flag Link Mon Jul 26, 2010
You can put your house up for sale, subject to you finding and closing on a home of choice. That way you will have a buyer on your house waiting for you to find another home.
Web Reference: http://www.GaryRapoport.com
0 votes Thank Flag Link Wed Jun 9, 2010
Jj:

Congratulations on attempting to get advice before you take action! With the quickly changing real estate market, it's the best action you could take.

As a lender and someone who's been in the real estate industry for over 30 years, my strong suggestion would be simply this ... talk to a qualified professional lender before you make any decision regarding the purchase of another home or the sale of your present home. For many reasons, proceeding with another purchase prior to selling your existing home could leave you in a precarious position financially. It would be best to determine what options you truly have financially and financing-wise before you go any further. A lender will be able to give you that information and present the options you have for moving forward.

Being a conservative lender in nature, I am always very cautious when facing this particular situation. Even in a good real estate and employment market, being saddled with two house payments could be financially damaging when faced for even a short time. With current mortgage lending being what it is, banks/lenders are not so likely to even consider this financial scenario for you as they once were. Qualification for another home payment may be indeed nearly impossible. Without having further financial information, it is impossible to make that final determination though ... so speaking and working with a lender is almost mandatory at this time and would provide the best financial protection for you moving ahead.

As I stated above, I am a professional banker/lender with over 30 years of experience and expertise. Through my company, Chicago Bancorp, I am fully capable of lending within Oklahoma. To learn more about myself and my company, please view my website at http://www.genemundt.com. It would be my pleasure to answer any questions you may have regarding financing and selling your home(s) and to also assist you in your financing needs as you move forward.

I can be reached through Trulia, my website, by email: gene@chicagobancorp.com, or my phone at 815.277.4036. Please feel free to contact me at your convenience. I look forward to assisting you soon, earning your trust, and your mortgage business.

Gene Mundt, Professional Mortgage Banker http://www.genemundt.com
Chicago Bancorp
Web Reference: http://www.genemundt.com
0 votes Thank Flag Link Mon Apr 20, 2009
Jj, I hope that you have read all the answers here, are all good information for you to use when making your decision. Now it comes time for you to find a Realtor to market your home and to also find you that new dream home you want to purchase. I just closed a sale in the Jenks schools that took from list date to close date only 54 days, if you need a Realtor please give me a call and we can set down and discuss your needs and get your home on the market and sold quickly as possible.
Jim Hemphill
918.636.6876
0 votes Thank Flag Link Sun Apr 19, 2009
I'm not real sure what your situation is, but I will share with you how I feel as a general rule.

Here are my views on all of it...
1.) If you have to put a contingency on selling your home first, especially if it's not even on the market, you lose negotiating power because the sellers are taking a risk that you will be able to sell your home.

2.) If you do a bridge loan expecting that your home will sell with no problems, and it takes longer than you expect you can wind up in a huge pickle (I've seen this happen).

3.) If you buy a new one with your old one expecting to get lets say $100,000 because that's what the market analysis told you before you bought the new one, but yet something happens and now you can't find a buyer willing to pay more than $85,000... not fun.

But here's the biggest concern I run into... "But Jace, I don't want to be homeless." That's the great thing about being the seller, if they give you everything you ask for in their offer, but they want to close in 2 weeks and you don't think you can find your new home for 2 months then counter back at closing in 2 months. You are in control of the situation, you don't have to worry about not having a place to stay.

I have a buy/sell analysis that we could go over and make sure what would be best for you, but in general I feel it's best to have your home on the market first for all of the above reasons.
Web Reference: http://www.OKLocations.com
0 votes Thank Flag Link Sat Apr 18, 2009
Hi Jj--there is more info I need to know. Have you spoken with a local lender about this? They would be the best one to speak with in regards to your ability to pay two mortgages at the same time. You can find out if you could qualify for bridge loan. Once you discuss the situation with them and you know what you can qualify for, you should speak with an experienced Realtor who know Jenks well, show them your home, and discuss what your needs are in terms of time/ money. She can then do a comparative market analysis (CMA) for you that will show how much your home is currently worth and how long it takes to sell in comparison to other .homes in your subdivision or area. She will tell you what the "fair market value" of the home is---meaning the amount a buyer will pay and a seller will accept for a home similar to yours. This is the price your home should be listed for. Now, having said all of this, I currently have clients that, like you, would like to have a back-to-back, seamless move from one home to the new home. Their home wasn't ready to be put on the market at the time we found them the home of their dreams. We made an offer on the home, but because we were too far apart in price, and because my client was not able to get a bridge loan, and because their home wasn't currently on the market, the offer was rejected--which isn't surprising, because a contingency offer is weak anyway, but if the buyer's home isn't currently on the market, it is very weak! They then realized they needed to get their house listed, and then look for the new home. It is listed now and we are looking for the future home in South County/Jenks area. The moral of this story is this------ list your home and actively be looking for another at the same time. Make sure your Realtor suggests a price for your home based on the facts-a CMA- and if it is in good condition,in a good location--it should sell fast. Most of the homes in Jenks do, because of the wonderful community/schools. Let me know if I can help you further
0 votes Thank Flag Link Sat Apr 18, 2009
Lori makes some great points, Jj, but I will attempt to answer the "best way" part of your question. Please remember that I am a Realtor, not a financial planner, loan officer or accountant, but you may consider refinancing your current home and maximizing your cash out, keeping in mind you will likely need to have at least 20% in the deal on a LtVR. You may then take the proceeds and buy a new home (with cash if the math works out on the purchase), which in my area could not qualify for the best, lowest interest rates, since it would not be the principal residence.

You could then take your time moving out, cleaning up and rehabbing anything on your "old" house that needed fixing, presumably buying in a lower priced market with great rates and selling in (hopefully) a somewhat better market, while still only making payments on the one property, if you can pay cash for the second. Having said that, please remember it is a risky proposition, but may work out for some.

Good Luck!
0 votes Thank Flag Link Sat Apr 18, 2009
Jj-
This depends on your qualifications as seen by the bank. You first need to talk to a reputable lending company to see if you qualify to handle two mortgages. Unless you owe no money on your current home then that won't be an issue. If that's the case then as long as you're up to maintaining utilities & the yard while it's on the market and caring for your new home at the same time, jump right in!

Let me know if I can be of any further assistance.
0 votes Thank Flag Link Sat Apr 18, 2009
Jj, it is better to have your home sold first. If that is not a possibility, there are some things you will want to check into.

What is the average market time for homes like yours? Add 3 months to that just in case and ask yourself if you can afford to pay the mortgage on both homes for all that time.

What is the average rental market time in case your home doesn't sell?

If you are able to sell your first home, you will be in a better buying position. It may enable you to have a larger down payment which can help keep your interest rate lower on your next purchase. Sell if you can - back to back transactions are possible.
0 votes Thank Flag Link Sat Apr 18, 2009
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