Would not owning 2 houses for a while at the same time be a risky business?

Asked by Barbara Sandberg, 18324 Tue Oct 21, 2008

We own a home in PA and have put a bid in on a short sale in NY. It may be a foolish move but we can afford to do it since our home in PA is paid off. My husband would rather sell this house first before buying the other one. At this point we are waiting for our offer to be accepted by the bank and have time before a contract would be signed. I hate to let the house in NY go but I know it is a financial burden to have 2 houses in this day and age.

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Lawrence&She…, Agent, Plainview, NY
Fri Oct 24, 2008
Can you afford this? On Long Island short sales can take upwards of 6 months before you even hear if your bid has been accepted, and many short sales are disappointments to homebuyers. Just make sure you can handle them both.
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Phil Svendsen, , Huntington, NY
Tue Oct 21, 2008
I sense a difference here between you and your husband. Suggest that you two come up with one answer that speaks for both of you. In this economy, get a sharp pencil do some simple math and let that be the final answer. Use your head not your heart, is my opinion on this matter.
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Gail Gladsto…, Agent, 11743, NY
Tue Oct 21, 2008
Buying real estate in NY (especially Long Island) is very different from PA. Even if your offer were accepted, the house would still be shown until closing.

With a short sale, several offers are presented and the bank takes an interminably long time to respond and if your offer is accepted as a short sale, they will want to move on it immediately.

If you can afford to put a mortgage on the 2nd property (your primary is paid in full), in this one instance I would disagree with your husband. What if you sell your primary and the short sale does not go through? Do you have a place to live?
Web Reference:  http://GailGladstone.com
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Anthony Marc…, Agent, New Rochelle, NY
Tue Oct 21, 2008
To be in a position of strength, you must have "staying power" for both new and old home bills. As a broker, I have never recommended to a client to buy before they sell. This becomes especially good advice in a down market. You must be prepared to either take much less for your home if market conditions worsen or lease your old home to cover the expenses in your new and old home. You will also be able to make a better deal for yourself if you can purchase your new home all cash and close much sooner. I have been in the business 15 years and have watched countless people put themselves in a position of weakness by buying a home first. You will have plenty of short sale opportunities. I agree with your husband and wait.

Anthony Marciano, Broker
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