What is the best way to go about getting this new home?

Asked by Susan, Texas Sat Dec 13, 2008

I have a two-story home that was built in the 70s. It is in need of several repairs and needs new windows,carpet, kitchen cabinets,etc...I paid 102 for it five years ago. It has been on the market about four months,no interest. It is in a good neighborhood and is very pretty on the outside. I have put new laminate floors in it also, just in the living area. I can't afford the repairs it needs. I have located a foreclosure. The house is two years old, and the tax office values it at 130. I can get it for 108. I would love to have this home. Only, my house hasn't sold. I don't have much money but this would be good for me. I could get a home equity loan but the interest is unreal! What else can I do? I have good credit. I am a single mother with three children. This new house is in very good shape with exception of of a few holes in the walls and etc..
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3
T.E. & Naima…, Agent, Dallas, TX
Sun Dec 14, 2008
Your situation is a difficult one. Without money to do the repairs your house will be more difficult to sell. You could make a deal with the buyer who is interested but wanting the repairs to have the work completed just prior to closing once the new buyer's financing is approved. You could then put the repairs on a credit card in anticipation of closing a week or so later.

The foreclosure property is higher priced than the current value of your current house. So, the question must be asked, if you can't afford repairs on the old house, how will you afford the payments on the higher-priced new house?

Be aware that Christmas time is not the best time of year to sell. It's a great time to buy, but sellers tend to wait until after the holidays to buy. You might be better off hanging on until the new year starts and saving up a little cash to do the repairs. The foreclosure may look attractive, but even if it sells first, there will probably be others to buy later.
Web Reference:  http://www.SumnerRealty.com
1 vote
Bruce Lynn, Agent, Coppell, TX
Mon Dec 15, 2008
Susan,

My advice would be don't look until you can get your home sold or at least under contract. That doesn't mean don't dream, but be realistic too. Price as agressively as you can. Be creative with your finances. Perhaps instead of giving presents for the holidays, give your family home updates. If you have kids at home, trade child care for upgrades. If you have equity in your home, offer repair/update allowance with the purchase. Price out estimates for all the work you would want done if you stayed in the home and leave the estimates with the showing materials in your house. If your the new house is for your family get them in on helping you raise the money for repairs. Can you get a family paper route? Can the family move snow or mow yards to raise money? Work together and you can make it happen.
Web Reference:  http://www.teamlynn.com
0 votes
Bill Eckler, Agent, Venice, FL
Mon Dec 15, 2008
Susan,

It doesn't sound advisable to consider buying before you sell your current home.

Keep this in mind. It's unlikely your current home has appreciated in value during the past 5 years when the real estate market is showing wide scale depreciating home prices. What do you have your home priced at?
Your home needs to be priced appropriste to the current market that probably means you will need to sell it for much less than you paid for it.

Talk with a real estate professional about pricing the home to sell....and then once again review weather or not this is practical for you.

God luck
0 votes
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