If a new home purchase is based on selling your present home should you sell first before looking for a new house?

Asked by Cathy Miramontes, Chicago, IL Thu May 30, 2013

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Gary Dobbs, Agent, Yorba Linda, CA
Mon Mar 16, 2015
That would make the transition from you current residence to a new one much easier.

Or else, you can sell making it contingent on finding a new residence. Buyers will take this into consideration when making an offer and deciding to commit.

Lastly, you can obtain a bridge loan. My company offers this to our clients, few brokers can offer this because they are not capitalized like we are.

The way a bridge loan works is you borrow from your equity before the sale to make the purchase on the new home. This is helpful in case you want to secure the residence and need to commit. We do consider many factors about both your sale and purchase before we'd suggest a bridge loan.
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Mike Opyd, Agent, Chicago, IL
Mon Mar 17, 2014
Ideally yes. Its can be difficult to convince a seller your buying from to accept your offer based on selling your current home unless you can show you have your home under contract already.
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Nicholas Rad…, Agent, Chicago, IL
Fri May 31, 2013
Balancing the sale of your current home and purchasing a new home is a very difficult and stressful position to be in. You need to find an agent that you have confidence in, because you are going to have to work very closely with that agent to accomplish your goals.
To answer the question you asked, you should be looking for a new home while your present home is for sale. You can talk about purchasing a new home and you can look at homes on line all day, but until you actually get out there and view what is on the market, you really don't know what you are going to end up buying. You need to get out there and decide which features in a new are really important to you. Once you accept a contract for the sale of your present home, the pressure to find your new home increases greatly. That is not the time to start the search for your new home. That is the time to make a final decision on the options that are out there for you.
Nick Radakovich Home Sales Realty
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Erik Sachs, Agent, Chicago, IL
Thu May 30, 2013

I am currently working with quite a few clients in your same position. A few recent examples to illustrate that it all depends on your situation:

- I found one family of four a home in Oak Park, they bought it, renovated and paid two mortgages until I sold their home in Chicago. Financially they were able to do it and they had two small kids so it was the preferred route for them. We listed their home at the same time they got serious about the home purchase.
- I found another family of four a builder that constructed a new home for them in Glen Ellyn. We listed their condo in Chicago and found a cash buyer that would rent back to them for up to 6 months so they had cash for their Glen Ellyn home. They committed to a purchase before they sold their home but ended up closing prior to their purchase due to the rent back provision.
- I helped another couple sell their Chicago condo and they rented until we could find them the perfect home. Financially they could have carried two mortgages but that did not match with their priorities. I found a wonderful home for them in Lincolnwood, we were able to sublet their rental and I was able to get them a great deal because they allowed themselves flexibility on their purchase.

Bottom line: hire a realtor that can help you prioritize your wants and needs and summarize them with your financial goals in mind. Depending upon your situation I might be that realtor. That said, there are others like myself with expertise that can help you through the process successfully.

Best of luck, please let me know if I can help.

Erik Sachs
RpV Realty and Development
Cell 773/368-5515
Email esachs@rpvinc.com
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JIM Michaels, Agent, Chicago, IL
Thu May 30, 2013
email me and start looking now!
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Joanna Weiss, , Chicago, IL
Thu May 30, 2013
You can acutally sell you home on the same day as you purchase the new home. This would be reccommended unless you are able to carry the monthly debt of both mortgages. It is best to speak with a Mortgage Banker to see what your options are. I would be happy to help. Joanna 773-327-35580.
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Philip Sencer, Agent, Chicago, IL
Thu May 30, 2013
I would start looking before you list to get an idea as to what your options might be, or might not be. Then list.
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Sari Levy, Agent, Addison, IL
Thu May 30, 2013
Yes, you should certainly have your home on the market before you begin looking for a new house as my peers have answered. It is okay to do some casual research on the markets in which you intend to search for a new home but actually going out and seeing homes will only lead to disappointment - unless of course you can carry two mortgages for a period of time.

Sari Levy
Managing Broker, ABR, SFR, CNC
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Bill J Delig…, Agent, Naperville, IL
Thu May 30, 2013
Have the area that you wan to live in and if possible 1-2 homes that meet your needs, and once you have the executed contract to sell your home, move forward on the purchase of your new home taking in mind the timing of the sale.
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Joe Schiller, Agent, Chicago, IL
Thu May 30, 2013
you should not be looking for a home until you are getting 3-4 showing per week on your place unless you are able to cover the mortgage of your new home regardless of the 30 days ..that is the absolute most it should take to sell your home.. you also should be working with a team like mine that would never have you searching on Trulia for answers.. we are the market makers..hire us!
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Dirk Gould, Agent, Chicago, IL
Thu May 30, 2013
Unless you are willing and able to carry 2 mortgages, you should at least secure a contract on your current home before going under contract on the new home. But it really depends on your market and the condition of your current home. I think recent history taught us to be more cautious in our approach to real estate purchases. Why take the risk of carrying two mortgages? That said, you still should look at new houses, get pre-approved, and generally learn the market so that you are prepared to move quickly when the time comes. Good luck.
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Matt Laricy, Agent, Chicago, IL
Thu May 30, 2013
Yes, do one thing at a time. Sell first, then worry about buying.
Web Reference:  http://AmericorpRe.com
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Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Thu May 30, 2013
Yes - a year ago I would have said no -
However the current market is very competitive and you may have difficulty finiding a seller who will accept your offer with a current home sale contingency.
Good Luck
Sam Sharp
Senior VP of Mortgage Lending
Guarnateed Rate
773 290 0455
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BJ Tregoning, Agent, Chicago, IL
Thu May 30, 2013
A lot of factors play into that decision. If you want to talk through it I'd be happy to offer my opinion on your situation. Feel free to call me or email me so we can discuss.
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Santiago Ken…, Agent, Chicago, IL
Thu May 30, 2013
Depend if you need the money to buy a new one ...
You can keep to houses .
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Laura Feghali, Agent, Stamford, CT
Thu May 30, 2013
Hi Cathy,
You should be out looking at homes that most closely match your needs and desires to get an idea of what is currently available within your price range. That way you will be more prepared and have a better understanding on the size, condition, and location that you prefer in a home.
Most sellers don't wish to see a buyer who has a property to sell before purchasing so do keep that in mind when out searching for a new home.

Best wishes!

Laura Feghali
Prudential Connecticut Realty
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