Buying a new home when I own one already... HOW?

Asked by 20872buyer, Damascus, MD Thu Mar 25, 2010

I found a home I'm interested in. I live in a home that I bought and updated. I've already got $40k equity before the updates. How do I go about purchasing a new home already on the market if my house isn't even on the market yet? What if there are no buyers immediately? I can't pay 2 mortgages!

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Tammy Durbin, Agent, Mount Airy, MD
Thu Mar 25, 2010
I have a great lender if you need one. They are very competitive with rates and easy to talk with.

Remember with a house to sell contingency you don't have to get stuck with two mortgages. Just remember to list your home with an agent who is agressive and can price it to sell not sit on the market.

Good Luck,

Tammy Durbin, A-REO, e-PRO, GRI, SFR
Accredited REO Agent
Short sale and Foreclosure Certified.
Long and Foster - Mount Airy

cell 240-405-3118
Web Reference:  http://tammydurbin.com
0 votes
Patty Smith, Agent, Frederick, MD
Thu Mar 25, 2010
You can go ahead and put a contract on the home that you like and make it contingent on you selling your home. Typically you will get 30-90 days to sell. A lot of existing buyers are doing this now. I working with a couple that is doing the same thing. The key is you would have to list your home at a great price to sell on the quicker side. I'm your neighbor up the street in Mount Airy. I work with a Team of Realtors and each one of the team members has a different speciality. You get all of us for the price of one!!!! Call me on my cell (240) 876-3424.

Thank you, Patty Smith

Long & Foster Real Estate
TEAM GARDINER
Mount Airy, MD 21771
(240) 876-3424
0 votes
Brian McMurr…, Agent, Tawas City, MI
Thu Mar 25, 2010
Then you need to Sell your current home first. You may need to go into temporary quarters if your home sells depending on what you can do on the purchase side. The home you're interested in may or may not be available if/when yours sells. Sometimes you can get a seller to agree to terms with a contingency based upon the sale of your home. Work with a local Realtor on these logistics and the process.
0 votes
voices member, , 21117
Thu Mar 25, 2010
I am going to have to agree with Scott. In this market, you absolutely want to sell your home first! Unfortunately since most homeowners enter this process in the reverse, it is difficult to understand. In an appreciating market, sellers are much more likely to accept a contingent offer because there is a high probability your home will sell quickly. However, in the market we are now in, very few sellers will accept this type of offer. There are a few reasons for this. First, the obvious reason is because the chance of your home selling quickly are not as probable. Also, if the seller accepts your offer for a specific period of time while you try to sell your home, it hurts him (the seller). Their home is still on the market, but is listed as "under contract." Very few agents or buyers will then pursue a home that is listed this way. So in theory, it is essentially no longer on the market.

I would definitely say you should get your home evaluated, then listed asap. If you make the sale of your home contingent on finding a new home, then you don't have nearly as much pressure. Chances are, if you list your home at an aggressive price from the start, it will sell quickly and you can then pursue the new home. If for some reason during this process, the home you are keeping your eye on is sold, you then have the option of removing your home from the market or pursuing another.

I hope this helps a little. If I can assist at all or answer any questions, feel free to call/email me.

Lisa Devnew
LDevnew@cbmove.com
410-615-0990
0 votes
Joan Congilo…, Agent, Freehold, NJ
Thu Mar 25, 2010
It would be very risky to commit to buying a house without even having a contract on your present home yet.
$40,000 equity really isn't that much in todays market. What you should do is call your real estate agent or if you don't have one call a local real estate agent to come & look at your house & give you an accurate evaluation of what your home would sell for in todays market, how much you would net, & how long it would take to sell. Based on that information you need to speak with a lender & get preapproved for a mortgage based on the home you like, what you expect to net from the sale of your house & how much you will need for closing costs.. If the numbers work then list your house for sale & make an offer after you get a solid contract on your home.
Web Reference:  http://www.joancongilose.com
0 votes
Scott Godzyk, Agent, Manchester, NH
Thu Mar 25, 2010
You will want to get preapproved with the preapproval staing you need teh funds from your sale to purchase the new home, you then want to get a brokers price opinion on your home so you can see if it is worth what you think it is, if so than list with a great broker and make the sale contingent upon you finding a new home. Then have your broke rpull listings and start viewing them, if you find one you like, and your house is not sold, make the sale contingent upon you selling your home. Most sellers will give you a 48 hour first right of refusal where they still market their house and if another buyer makes an offer, you have 48 hours to waive the contingincy or withdraw and get your deposit back. good luck with your sale and purchase.
Web Reference:  http://www.ScottSellsNH.com
0 votes
Tammy Durbin, Agent, Mount Airy, MD
Thu Mar 25, 2010
Hello,

That's wonderful you found a home. I assume you have already spoken with a mortgage broker and are aware of how much you need to put down and what your monthly payment would be. The next step would be to find out how much your home is worth and how much you will net from the sale. Before you put a contract on a home make sure you check the neighborhood to see what homes are selling for. You don't want to pay too much for a home. The next step would be to write the contract contingent on your house selling. They usually give you 30 to 45 days to get a contract on your current home. Feel free to call me with any questions on buying or selling. I used to live in Damascus and know the area very well. I was also the top sales person in my office last month. I could stop by and give you an idea of what it would sell for if your not already working with an agent. The market is really picking up and I could sell your home fast. I work with professional stagers and advertise on several websites, newspapers and have a 24 hour hotline for your home.. Call me.

Good luck

Tammy Durbin, e-PRO, GRI, SFR, A-REO
Accredited REO Agent
Executive, Directors and Presidents Sales Awards
Long and Foster Real Estate Mount Airy Office

cell 240-405-3118

email: tammyd@longandfoster.com

.
Web Reference:  http://tammydurbin.com
0 votes
Search Advice
Search
Ask our community a question
Home Selling in Damascus Zip Codes

Email me when…

Learn more