We're trying to decide to put house on market first and make sure we get what our current mortgage is

Asked by Jim, Shakopee, MN Mon Jun 30, 2008

and then look after it's sold, or to go looking now and possibly making an offer with contingency on ours selling? Problem is we don't have a place to go to if we sold our home now. We don't have the funds to make up any difference from our mortgage if it sells for less.

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9
Christopher…, Agent, Tarrytown, NY
Mon Oct 14, 2013
Have your agent do a comparative market analysis so you can get a good idea where they would comfortably list the home. Nobody can say for sure what it will actually sell for but you are always in control. If you aren't getting offers that will work then you don't have to sell it. I wouldn't make an offer contingent upon your sale until you have a solid buyer that is in contract and close to getting their mortgage commitment. The most important thing to keep in mind is you have to listen to the market when it speaks to you. If the comps are all coming in much lower then what you need to sell for you most likely won't get a buyer to pay what you need. Supply and demand could work in your favor as it is in my area. Just because comps come in low doesn't mean a buyer won't put up more cash needing less of a loan, it depends on how much they want your home.

Christopher Pagli
Accredited Buyer Representative
Licensed Associate Broker
William Raveis Legends Realty Group
914.406.9023
0 votes
Annette Law…, Agent, Palm Harbor, FL
Mon Oct 14, 2013
Terri provided you excellant advise.
What you owe on your exisiting home has no bearing on what it will sell for, This is a very common, 'FATAL' error many homeowners make.
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If you purchased your home since 2005, with minimal downpayment, it is very likely you will barely break even. This means no 'profit' to use as downpayment for next home.
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It is time to call a real estate professional and get a good look at what is really happening in the real estate market in Shakopee, MN. Be aware...all the crappy data you troll through on aggregate real estate websites is for entertainment purposes and is the worst possible reosource to use to find actionable information.
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Request a trend report of the area, such as my "Market In A Minute' http://(www.Trulia.com/blog/annettelawrence) to visulalize the current movement. Also you will need a CMA that will be speciifc to the attributes of your home, recently sold homes and competing homes.
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The trend report may suggest that waiting a year may have a huge influence on the bottom line or reveal the opposite.
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What you need is reliable, accurate, responsible data with which to evaluate your situation.
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Unfortuneately, none of the agents who have responded to date provided a telephone number. Click their name to find their contact info on thei Trulia profile. They can give you access to reliable data and create the reports you need.
Best of success,
Annette Lawrence, Broker/Associate
727.420.4041
Palm Harbor, FL
0 votes
Alan Mackent…, Agent, Chaska, MN
Mon Oct 14, 2013
If you don't have the funds to make up any difference between and the mortgage and sale price, then I'll have to assume, you don't have the funds to make two house payments. Therefore, I'd look at trying to sell your current home 1st. Once you've got a contract for it, you can start seriously looking at new homes. Don't feel like you have to buy a new home before closing on the old. There are short term rental options available. It's also not very expensive to rent a pod or other moving container that can also be used to store your home goods for a while. Good luck.
0 votes
Aaron Dickin…, Agent, Champlin, MN
Mon Jun 30, 2008
While down payments are required by most loan programs, I'm still getting a lot of buyers 0% down using an FHA loan with a Down Payment Assistance Program (DAP). It's out there, but as Teri stated, it is important to talk to a loan officer to figure out what you do qualify for.
0 votes
Teri Eckholm, Agent, St Paul, MN
Mon Jun 30, 2008
Hi Jim!

First things first! Find out what your current home will sell for in this changed market. The rest of the situation is irrelevant unless you can sell your home, pay all fees and have some money for a down payment.

Unfortunately, buyers do not care what you owe on your home. They will only pay what your home is worth to them today.

So find a good qualified Realtor to provide a market analysis that is accurate. Not telling you what you want to hear but what you truly can expect to receive in this market.

If the numbers look good, next visit with a good qualified lender to be certain that you will be approved for a loan with the amount of down payment you have available. Zero down programs are almost non-existant these days so be certain that you will be able to get a loan for the home you want to buy and a payment that works in your budget.

If your home does have enough equity to pay off the mortgage, fees and you are comfortable that you will be able to purchase, then you can look at putting your home on the market contingent on finding your home of choice. Another option is putting your belongings in storage and finding a temporary rental situation near where you want to live.

If you have any questions on how to time a double move, feel free to email or call me. I have many clients that buy/sell with same day closings. It takes the organization and commitiment of a good Realtor but is done everyday!

Good luck!
Web Reference:  http://www.terieckholm.com
0 votes
Aaron Dickin…, Agent, Champlin, MN
Mon Jun 30, 2008
If you've purchased your home in the last few years and did 0% down, it is unlikely you will get out of the house for the amount you owe. Brad is correct that you need to talk with 1-3 agents first and determine what is best in your situation. Each situation is different.
0 votes
Brad Anderson, Agent, Maple Grove, MN
Mon Jun 30, 2008
Jim, the 1st thing you shold do is contact an Real Estate agent to get a Comparative Market Analysis. This will help you decide if now is the time to sell your home. Don't make the mistake of using what you owe on your home as the value of your home. Once you know if you can sell it for what you owe or more, then your Real Estate agent, can help you with timing the sale of your home.
0 votes
Realestateop…, , 55120
Mon Jun 30, 2008
Jim,

A tool that was used a lot years ago was a clause in the MLS stating “The sale is subject to the seller finding a home of their choice”. Then you are protected and you can always remove it when you feel more comfortable with what is going on with the buyers, your bottom line estimates, and your home search.
0 votes
Lenny Frolov, Agent, Brooklyn Park, MN
Mon Jun 30, 2008
Jim: I think in your case if you think you may not be able to get full payoff on your mortgage it would be best to sell your house first and then go looking. You can choose what closing date you want and if you put it 45 days out for your sale you can probably find a home that you want in that time frame and close on both the same day without any hassles.
Web Reference:  http://www.lennyfrolov.com
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