We own a condo and would like to sell it and at the same time buy a house. What is the best way to go? Sell the condo, rent and then find house?

Asked by Hhunter, Des Plaines, IL Wed Mar 30, 2011

Our condo is in a nice Des Plaines downtown area, built 2005, relativelly new, with lots of upgrades. We bought it 3 years ago, and would like to sell it now, and find a house. Problem is, we don't want to have two mortgages. Condo can not be rented. Do we sell the condo first, then rent for awhile, then start looking for a house to buy, or what should be smarter? Do we look for a house first, then list the condo for sale? Any advice is appriciated. Thanks.

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8
John Walin, Agent, Libertyville, IL
Thu Mar 31, 2011
HH
Focus on the condo , know your competition in the building and market in general. is the condo near METRA? Sounds nice! Once you get an accepted contract on condo, you can write a contract with a home closing contingency to coordinate the two transactions to close one day apart.

A reverse home sale contingency is a good option too. That is where you get an acceptable offer and the contract gives you 7-10 days to find suitable single family house. If you don't find a house you can expire the contract for the condo. I recommend renting back your condo for a week from the condo buyer, that's called a post possession agreement.

If you like my answer, best answer and thumbs up!
1 vote
Jeanne Feeni…, Agent, Basking Ridge, NJ
Wed Mar 30, 2011
Coordinating two closings can be tricky. Also, your condo sale will set you up for a contingent offer on the buy side which will lessen your leverage. My advice is to focus on your condo sale - get it listed pronto so you capitalize on the Spring Market. Once you get traction on that end, start looking. If you are in the position to rent on a short term basis, that would be ideal so that you can buy as a non-contingent buyer.

Your goal - become a buyer - once you are there, ah, a great market awaits! Good luck to you. Be smart with your pricing and aggressive with your marketing!

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
1 vote
Gerard Schef…, Agent, Park Ridge, IL
Sun Nov 27, 2011
Sell the condo, rent and then find house? I think you just answered this question yourself....I just wonder how are you doing after couple of months when you asked this question...what option worked out...Did you get the right, expected price for your place ???
0 votes
Jan McNulty, Agent, Mt Prospect, IL
Wed Nov 16, 2011
Personally, I would put the horse before the cart and sell the condo first. With proper staging and pricing it should sell. Unfortunately the amount of condos on the market is relatively high and it may take a while. I would think keeping an eye on the market for what you want while you are on the market with the condo makes sense. Renting is never a good option in my humble opinion. Good luck for you!
Web Reference:  http://www.janMcNulty.com
0 votes
Jason Solarz, , Rolling Meadows, IL
Fri Jun 3, 2011
Great advice from everyone. I won't repeat what was said but wanted to add that to speed things along while you are waiting for a contract on your condo, you could be getting prequalified or preapproved for your home. This way at least you will know exactly how much you can afford once your condo does sell. In addition if your lender has all of your information beforehand as soon as you are ready to submit your formal application everything can be turned in and speed up the process a great deal. I would be more than happy to help with this if you would like. Best of luck!
Jason Solarz
Platinum Home Mortgage
847-797-9500 ext 8264
jsolarz@ephmc.com
0 votes
Suzanne Hami…, Agent, Orland Park, IL
Thu Mar 31, 2011
Good question and one many people are pondering. The answer is there is no easy answer. But, the lowest risk without carrying two mortgages is sell first, but try to do both at the same time.

I would get a few Realtors to give you an analysis and evaluate your list price to see how fast your property will sell. There is no crystal ball on time to sell, but at the same time, look for properties so you and your agent get an idea of what you want and keep looking, because your favorites may be sold before you can buy. Get preapproved, get everything done, so when you do sell, you can be ready to put in an offer. Fast closings are possible and with a little luck, you can do both with little time in between.

Contingencies on sale are not really possible, but most people are OK with contingent on close, if your buyer is qualified, etc.
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Mar 31, 2011
We recommend for our clients sell the property they currently own THEN at closing move into an extended stay hotel search for another property.

Many lenders will decline mortgage if you own another home based on CURRENT economy conditions.

Best to be cautious
Web Reference:  http://www.lynn911.com
0 votes
Linda Dressl…, Agent, Schaumburg, IL
Thu Mar 31, 2011
Hello Hhunter!

You will have stronger purchasing power and options if you do not have to make an offer on a house that is contingent upon the sale of your condo. Typically in a short sale, if you are going to go that route for a purchase, a home selling contingency ties things up and might kill the deal. Do you have a friend of family member that you could move in with or perhaps you could find a month-month lease... If you put the condo up for sale, it might take awhile for it to go under contract. What condition is it in? Would you buy it... right now... as it is... compared to what is out there? I could go on and on here with advice, I suppose my strongest bit of advice might be for you to hire a Realtor®. Interview a few, see who you click with and trust. They will help advise you towards the goal of single family detached home ownership. I would be happy to speak to you one on one, feel free to give me a call!

Wishing you the best,
Linda Dressler, Realtor®
(847) 809-1257
SRES, SFR, ADPR
Schaumburg, IL
0 votes
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