Wanting to get rid of our house to take advantage of the market and buy larger

Asked by Cricket, Northbrook, IL Wed Aug 8, 2012

my fiancee and I bought a house together 4 years ago, it was our first house. We both have good steady jobs and never miss any payments. We want to take advantage of the market and buy a larger house but we still owe a lot on our current house. We don't think we will do more than break even (if that) if we try and sell. Is there any option for situations like ours? We would hope that our financial situation would help us somehow.

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Dayle Lively’s answer
Dayle Lively, Agent, Winnetka, IL
Thu Aug 9, 2012
Hello Cricket,

It sounds like you and your fiancee have developed responsible financial habits, and I think it makes sense for you to want to take advantage of low interest rates and reasonable home prices. I assume that your desire for a larger house means that you would plan to stay in it long term, which would make it a good investment, as well as providing a comfortable environment for your family in years to come.

The first step is to have a real estate professional help you determine the probable selling price for your current home. Then, of course, you should meet with a mortgage professional to provide guidelines for the $ amount that you could realistically spend on a new home.

Once you have all the numbers in place, you should make a list of your priorities for the house you'd like to purchase. I don't know what your price range would be, but If you are considering Glenview and Northbrook, there are currently 59 four+ bedroom homes for sale in Glenview in the $400,000-$800,000 range and 26 more in the $800-$1,000,000 range. Northbrook currently has 58 four+ bedroom houses for sale between $400,000-$800,000, and 13 in that next tier of
$800,000-$1,000,000. As I'm sure you know, both of those villages have a wide variety of home styles and many different kinds of neighborhoods. You could narrow your search if you wanted to target certain locations--such as near the train, business districts, particular schools/and or school districts.

I'm familiar with both Glenview and Northbrook, as well as other North Shore towns, and would be happy to assist you in your buying and selling processes. Feel free to give me a call at 847-507-8832.


Dayle Lively
1 vote
Frank Dolski, Agent, Lahaska, PA
Thu Aug 9, 2012
Good answers and I agree. Have a professional evaluate the value of your home. If you do not have a lot of equity, hopefully you are saving and can add to a down payment. I also recommed speaking with the Mortgage Loan officer to see how much of a mortgage and home that you can safely afford.
1 vote
Marcus Neces…, Agent, Bentonville, AR
Wed Aug 8, 2012
Jackie is right. Have a professional evaluate your home. It's possible that you may lose a little on the sale of your current home but you'll undoubtedly make it up in the reduced value of the next one.

If home prices have dropped, say 10% in your area, it might be a $20,000 drop in your house but it's a $40,000 on the one you're buying (on a 200k and 400k home respectively).

Then consider your interest rate difference. Your new rate may be as much as 2% less than your current rate if you bought 4 years ago. That could be an huge drop in interest payments.

To answer your question directly though, there aren't any programs available that would help you make up the loss on your home as long as you've been making the payments. Loan modifications or a short sale may damage your credit enough to where you wouldn't be able to purchase the new one.
1 vote
Maria Ascenc…, Agent, SAINT CHARLES, IL
Wed Aug 8, 2012

I suggest that you speak to a lender and get qualified to purchase, once that is taken care of then you can work with a real estate agent in marketing your current home.

If I can be of any help, please feel free to call, text or email me at your convenience... I'm here to help!

Hope to hear from you soon

Maria Ascencio
1 vote
Jackie Thom, Agent, Wilmette, IL
Wed Aug 8, 2012
You should probably have a market analysis done on your house so that you can see how that compares to how much you owe on it. If you can sell without having to bring too much money to the closing table, you may want to take advantage of the low interest rates and move up in house while those values are down. Even though you may lose some money on the sale of your home, you will make up for it on the purchase of the larger home. Don't hesitate to call me if I can help. 773-617-7361.
1 vote
Edith Karoli…, Agent, Winnetka, IL
Fri Aug 10, 2012
You bought at a time when owning your home for 4 years only did not give you a long enough chance
to have a lot of equity in your current home. Depending where your home is located and its size, you
could probably rent it, when you do so, the lender who will provide you with the loan for your next
property will look at the current equity in your home.... in order for them to accept the income from
that property to fit into their financial consideration of your total income and total responsibilities....

Here it is difficult for us to make good suggestions to you, not knowing all the numbers, and the home itself.

Your first step should be to connect with a lender or two or three and discuss with them your situation
and your desire.

Now it could be possible that you can break even on your current home, just depends what where and how updated and inviting to buyers it will be once on the market, so good preparation of
the home will be necessary, how large is the lot, can a new buyer add on / expand the home?

Would you then have enough down payment for the next home, and what price range are you
looking at, which you will have to secure with a committed lender of course...

Just be careful how you proceed, take it slow and one step at a time.....
Northbrook, Glenview and Wilmette offer some really good larger homes.... Feel free to contact
me with more detailed information and I can make some good suggestions for good lenders.

Take care,
Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Covering for @Properties the city of Chicago, all N and NW suburbs,
the fine homes on theNorth Shore, and many of the W and SW suburbs,
and with her trusted Partner Agents all of the US and worldwide properties.
Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093
EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com
Check out my website at htttp://www.tinyurl.com/MeetEdithHere
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Thu Aug 9, 2012
Good idea. Your financial situation will definitely help you get a loan faster and easier. But it could also help you rent this house as a last resort depending on income. My advice is to get withba loan officer and see what home you can afford with or without your current home. Then see what kind of home you want and see ifvthe numbers work. Then get a good agent to tell you what your hone can sell for in this market.
0 votes
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