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antoinette
boy mamma
Member since 5/05 2975 total posts
Name:
Antoinette
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has anyone bought before selling?
We found a house that we LOVE infact it is the house that my Dh mother owned 10 yrs ago. Dh spent all of his weekends there for most of his childhood( divorce) Anyhow, we just put our place on the market. We made an offer but they are hesitant because of our co op not being sold or even having an offer. I know that we can get a bridge loan and I did mention that as a possibility but it scares me- I do not like the idea of owning 2 places at once. If we had to go for the bridge loan we would need to knock some money off the price of the place because of all the financing. If the owners waited until our co op sold we would go up on our offfer.
Has anyone been in this situation- if so how did it work out for you?
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Posted 8/9/06 11:46 AM  |
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LisaI
Momma's Little Beans
Member since 1/06 3923 total posts
Name:
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Re: has anyone bought before selling?
Yes, we are doing this right now. We own our home, haven't even put it up for sale yet and also are under contract with the new house, also have 2 property loans (both which are up for sale now). We had no problems getting another mortgage and the other sellers were anxious for us to buy their house ( we are neighbors )
I would do it, especiallyif you love the new place. Everything will fall into place eventually. You'll be fine, it'sok to be nervous (for I am most of the time), but like I said things just fall into place.
Good luck!
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| Posted 8/9/06 12:28 PM |
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riniko
LIF Toddler
Member since 3/06 486 total posts
Name:
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Re: has anyone bought before selling?
What is a bridge loan?
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| Posted 8/9/06 12:31 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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Re: has anyone bought before selling?
We did this - and we ended up owning 3 homes at once! My FH's condo sold right away - within a day on the market. My condo took a little while longer - on the market 3.5 months, offer accepted, and then closed at the 5 month mark.
I have to admit - there were times when it was very stressful. With FH condo the buyer was not a normal person and we thought she was going to end up backing out. With my condo sitting on the market so long I was stressing that it would never sell. It all worked out in the end, but i can't say I recommend it. and with the market the way it is now, you really have to price it right to ensure that it sells quickly. You need to have realistic expectations of what you will get for your house.
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| Posted 8/9/06 12:34 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: has anyone bought before selling?
Posted by riniko
What is a bridge loan?
a bridge loan is a loan that is for a short period of time (in my bank we do commercial bride loans and they are for 150 days) that "bridges" the gap between when you buy your house and sell the other one.
Usually they are interest only, and the proceeds of the sale of you house will go to payoff the bridge loan.
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| Posted 8/9/06 12:44 PM |
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anjerandunder
Positive thoughts worked!!!
Member since 6/06 1909 total posts
Name:
J
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Re: has anyone bought before selling?
i found this website very informative
bridge loan
eta: my husband and i are very afraid of doing this but if we found the house of our dreams, we might very well be in the same predicament. good luck!!!
Message edited 8/9/2006 12:53:44 PM.
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| Posted 8/9/06 12:53 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: has anyone bought before selling?
the people who bought my Dad's house haven't sold there house yet- so my Dad isn't closing until their sells
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| Posted 8/9/06 1:52 PM |
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LisaI
Momma's Little Beans
Member since 1/06 3923 total posts
Name:
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Re: has anyone bought before selling?
Can I ask why buying a new home while you have athoner home would affect closing? do the buyers not have money for a down payment?
We were able to put the 20% down on the new house so that wasn't an issue, but it never came up (from the current owners of the home we bought from) either way as to how we would finace the new house and our current home.
I guess that is what I am asking, why would the seller care how the buyer was getting their money to them??? Or could the buyer not get the moeny to the seller? If that is the case why sign a contract?
I'm just confused about all that since I've heard it more than once. any clarification would be helpful/
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| Posted 8/9/06 2:08 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: has anyone bought before selling?
Posted by LisaI
Can I ask why buying a new home while you have athoner home would affect closing? do the buyers not have money for a down payment?
We were able to put the 20% down on the new house so that wasn't an issue, but it never came up (from the current owners of the home we bought from) either way as to how we would finace the new house and our current home.
I guess that is what I am asking, why would the seller care how the buyer was getting their money to them??? Or could the buyer not get the moeny to the seller? If that is the case why sign a contract?
I'm just confused about all that since I've heard it more than once. any clarification would be helpful/
imo, (i have never sold a house - )but most people dont have 20% to put down, they need the equity from their previous house - so the deal will be contingent on the buyers selling their current house - and especially in todays market, who knows how long that can take!
think about it - if you have two offers - and you want to move asap - and one is for $10k less but the buyers can close immediately, and the other is for $10k more than the other, but they have to sell their house first, which would you rather have?
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| Posted 8/9/06 2:10 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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Re: has anyone bought before selling?
Just to add to Meaghan's response, if you wont be able to close on the house because your down payment is tied up in your other house, you have to ask the seller to put in a contingency clause that the purchase of their home is contingent on the sale of your home. This is a very risky thing to do for a seller because they have no control over how you price or market your home. I would not have accepted an offer with this contingency unless it was the only offer I got, however, many sellers are willing to put it in a contract, so it's worth a shot to ask.
Our realtor encouraged us to put our home on the market right when we started seriously looking because of this. It doesnt leave you as much room to be picky if your house sells before you find a new one, but it eliminates the risk that you find a house you love and your offer is rejected because of financing. Hope that helps.
Message edited 8/9/2006 2:19:26 PM.
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| Posted 8/9/06 2:18 PM |
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Re: has anyone bought before selling?
I wouldn't only because I couldnt see owning two homes especially since the market is a little slow. Our house has been on the market for 2 months and we only had a hand full of people look at it.
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| Posted 8/9/06 2:31 PM |
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riniko
LIF Toddler
Member since 3/06 486 total posts
Name:
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Re: has anyone bought before selling?
Well what would the payments be on the bridge loan in the interim?
I would probably use that as the determining factor.
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| Posted 8/9/06 2:37 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: has anyone bought before selling?
Posted by riniko
Well what would the payments be on the bridge loan in the interim?
I would probably use that as the determining factor.
they are usually interest only, probably prime + 1%. so it depends on the amount..
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| Posted 8/9/06 2:38 PM |
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LisaI
Momma's Little Beans
Member since 1/06 3923 total posts
Name:
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Re: has anyone bought before selling?
ok, thanks so much for the education on this. We are going to put our house up for sale soon. While DH knows all this stuff, I need to learn so I am not frustrated through the process. Thanks ladies.
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| Posted 8/9/06 3:05 PM |
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antoinette
boy mamma
Member since 5/05 2975 total posts
Name:
Antoinette
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Re: has anyone bought before selling?
Posted by Meaghan729
Posted by LisaI
Can I ask why buying a new home while you have athoner home would affect closing? do the buyers not have money for a down payment?
We were able to put the 20% down on the new house so that wasn't an issue, but it never came up (from the current owners of the home we bought from) either way as to how we would finace the new house and our current home.
I guess that is what I am asking, why would the seller care how the buyer was getting their money to them??? Or could the buyer not get the moeny to the seller? If that is the case why sign a contract?
I'm just confused about all that since I've heard it more than once. any clarification would be helpful/
imo, (i have never sold a house - )but most people dont have 20% to put down, they need the equity from their previous house - so the deal will be contingent on the buyers selling their current house - and especially in todays market, who knows how long that can take!
think about it - if you have two offers - and you want to move asap - and one is for $10k less but the buyers can close immediately, and the other is for $10k more than the other, but they have to sell their house first, which would you rather have?
we need the equity- around 70k to put down on the house- we dont have 80K in the bank- if we did we would be 
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| Posted 8/9/06 4:42 PM |
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antoinette
boy mamma
Member since 5/05 2975 total posts
Name:
Antoinette
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Re: has anyone bought before selling?
Posted by riniko
Well what would the payments be on the bridge loan in the interim?
I would probably use that as the determining factor.
we are prob looking at 8-9%  which is why it kinda stinks
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| Posted 8/9/06 4:43 PM |
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christy
Mommy of 2
Member since 5/05 6787 total posts
Name:
Christy
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Re: has anyone bought before selling?
We are buying a house, and have not sold our condo. In fact, now we'd rather rent it out.
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| Posted 8/9/06 5:18 PM |
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