Buy or Sell First?

Asked by SMMom, Stewart Manor, NY Tue Sep 21, 2010

Hi, I currently live in GC area and am looking to trade up. My current home is paid off and I've saved up to hopefully avoid a mortgage (or get a very small one) with our new home. I'd prefer to sell first so that I know exactly how much money I have towards the new home. But I'm afraid that if I wait to buy until after I go into contract, I might be limited in terms of choices. In today's market, what would you recommend?

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Nina Harris’ answer
Nina Harris, Agent, Williston Park, NY
Thu Apr 12, 2012
Although this question is from 2010, it is an important question when trying to juggle both selling and buying at the same time.

Since your current home is paid off, you can stay put and search for a new home. Rent this home and then use the proceeds to contribute toward your new larger home. Or if you need the money from this house as a down payment for you new purchase...price it correctly, make sure it shows well and get it on the market for sale.

Remember....if you have to sell to buy, most sellers are not going to wait for your home to be "in contract" to strike a deal with you. So be proactive...get your home on the market and sold. You will be in a much better position to purchase the much larger home you desire.
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Reema Sharma, Agent, Glen Oaks, NY
Sun Mar 25, 2012
Since your home is fully paid you can rent it out and use the income to pay your new mortgage.
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Peter Owen, Agent, Garden City, NY
Sat Nov 19, 2011
Very common question - in the GC area houses are moving well and selling should not be a big problem assuming the house is priced correctly and shows well to new buyers. Finding a home in GC area is also not a problem as there are a lot of properties on the market in all price ranges. It is a balancing act on when to buy and when to sell. Please call me to discuss further as I am an agent in GC and know the area well.

Peter B. Owen
Licensed Sales Associate
The Donnelly Group
730 Franklin Avenue
Garden City, NY 11530
Office: (516)741-4333
Cell: (516)317-2860
Fax: (516)741-4330
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Jerry Cibuls…, Agent, Southold, NY
Wed Aug 10, 2011
In todays market there are many choices. Take the time to identify three or four homes that meet your needs. Place your home on the market and once you have closed you will be comfortable with negotiating on your dream home. This allows you to be educated in the market and places you in the strongest financial position.
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Mtg 101, , Garden City, NY
Tue Jun 28, 2011
hey SMMom,

I see you have came to a cross road, if you decide you will be buying another home: The banks will require a HUD to show your current home is sold also make sure it is some-one that does not require to sell there home better if the person you sell to is a first time buyer or else this could lead to major delays waiting for the buyer to sell there home.
If you decide to rent your home it is the faster way to go/ most risky and your current home would need to be appraised and have 30 percent equity to be able to go this route, of course if your current home is under water you would have no choice to sell the property unless you had enough income to qualify for both homes remeber when renting the bank will only use 75 percent of the rental income and you will need a one year lease agreement with the depsoit check. feel free to call me i am a local PNC mortgage lender 666 Old Country Road Garden City NY 11530 516.222.3207 or 516.233.4842 e:
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Annette Levi…, , New York, NY
Tue Sep 21, 2010
I would recommend that you purchase first. Many of the homes in Nassau County are owned by banks or are offering short sales. Negotiating with a bank is a time consuming process. It is so bad that Congress has HR6133 before them requiring banks to make a decision on short sales in 45 days not the year then are now taking. If you find that you need a mortgage, in NYS there are no prepayment penalties for a fixed rate mortgage. That means if you take out a mortgage 6 months later you can pay it in full without a penalty. I would recommend that you speaking with your accountant on what is best for you.
In your area you can always rent your current home if you have trouble selling. Do expect the purchase process to take at least 3 months if you are buying a house only from the seller.
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