Massachusetts Real Estate

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Is It Wise To Buy A Home Before Selling The One You Own?

Common Approaches And Issues When Buying Before Selling

Buying before selling a homeOne of the age old questions in real estate is should I buy a home before selling my exisiting home? In Real Estate circle we call this the chicken and egg question. Essentially it means which should come first. For most people it will be selling the home they already own first.

Buying a house before you sell your own is usually not a good idea. There are exceptions to every rule, but unless you have significant funds (enough to cover both mortgages for a year or more), you are probably better off waiting. If you have found your dream home, though, and you are not sure you can wait, it’s worthwhile to look at some of the options to accomplish your goal and the issues that come along with buying before selling.


Money

This is the first thing any bank will ask when you approach them with a home you want to buy. You maybe one of the lucky few with enough money to pay on two mortgages indefinitely, but if you are not, the bank is likely to turn you away. Things do not always go according to plan, and the bank is not one to take unnecessary risks.

It is important to understand that real estate buying and selling are uncertain ventures, impossible to put definite timeframes on. Yes, you may get lucky and sell your house a week after you buy the new one. However, it is just as likely that your much-needed sale will take months if not over a year to complete.

Contingency Sales

You may have heard about the concept of the contingent home sale. In select situations, some sellers are willing to accept home sale contingency clauses. These clauses make it possible for some to buy before selling, because you do not actually buy until your home sells.

A home sale contingency clause means that you make an offer on the new house to buy and don't actually have to move forward unless you are successful completing the sale of the home you already own. When your current home sells, you are then able to move forward and everyone is happy. The problem for most sellers is that it is a very big "IF" that you will sell your home. The seller has no idea whether you will do what it takes to sell your place including pricing it properly!

Sellers rarely accept these clauses unless they are in a tight spot – unlikely if the home is really desirable. If you have few other options, though, it can’t hurt to ask.

Bridge Loan

A bridge loan is something that very few people qualify for, and most banks are not eager to offer them. Designed to wrap up the payments of your old mortgage and your new one to “bridge” the gap between your homes, if you do qualify for one it could help you buy before selling. However, the bank will once again want to know that you have the kind of money to cover these payments.


Bringing in Renters

Renters do offer you the opportunity to have someone help you pay the old mortgage while you cover the new one. However, renters come with numerous problems more often than not, and are not recommended as a short-term solution. It can take years to find good renters – ones that will take care of your property, pay the rent on time and generally avoid causing problems. While selling Ashland Real Estate a few years back I remember one of my clients deciding to rent out their home instead of selling. I remember it like it was yesterday because I voiced my opinion that it was a bad move and they didn't listen.

Not only was the real estate market on the way down but I told them how risky it would be getting the right person in the door. Sure enough a few years later the seller had enough of being a landlord and wanted to sell. The only problem was the home had lost ten percent of it's value due to the market correction and on top of it the seller had to repaint the entire home and replace all the carpets to the tune of over $10,000!  

If you are just looking for someone to cover a year of mortgage payments, you might wind up with more trouble than you expected.

Benefits

There is a reason you are considering buying before selling, and it is probably because you have found the perfect home for the perfect price. There are rare times when this could be worth jumping on – such as an amazing deal that will almost surely net you a serious profit. Most of the time, though, it is just not worth the risk. If the bank will not go for it, it’s probably because there is more to lose than there is to gain.

Avoid buying before selling unless you have enough money to comfortably carry both mortgages. Anything less is just asking for trouble.

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About the author: The above Real Estate information on Is It Wise To Buy A Home Before Selling The One You Own was provided by BillRE/MAX Executive Realty Hopkinton Mass Real Estate Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 26+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

For Metrowest Massachusetts Real Estate and home sales see Maximum Real Estate Exposure

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Comment balloon 70 commentsBill Gassett • December 05 2013 04:00PM

Comments

Obviously, it depends on the individual's financial situation in terms of ability to carry two houses. But normally, I tell my clients they can probably buy a house faster than they can sell one... so they might want to hold off on a purchase until they know they have a solid contract.

Posted by Nina Hollander, Your Charlotte/Waxhaw/Fort Mill Area Realtor (RE/MAX Executive | Charlotte, NC) almost 4 years ago

Agreed Nina - there are some who are in the fortunate position of being able to buy a home before they sell. For others in makes sense to understand what you can and can not do.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) almost 4 years ago

Pretty good points, very informative. Thanks for sharing.

Posted by Randy Shamburger, FHA, VA, USDA and Conventional Mortgage Expert (Movement Mortgage) almost 4 years ago

Bill, as ususal, great and timely post.  In our market where inventory is soooo low, these ideas are becoming very real discussions.  More detailed discussions about pricing, what waiting can mean to interest rates, and being a landlord are key to making move-up buyers understand the strategy.  Keep on writing!

Posted by CJ Brasiel 408-406-6035, Choose a real estate partner with a different view (Veridian Realty Group) almost 4 years ago

Bill,

It’s a good though provoking post, but I disagree with some of your conclusions.

Individuals often find the exception is the norm. Very few think of themselves as normal.

You write that contingence clauses, "Sellers rarely accept these clauses unless they are in a tight spot." my experience is 180 degrees different, troubled sellers are not normally in a position to accept anything, but a sure and certain closing.

Contingence clauses are need by some and if the seller is in no hurry they can work, but I recommend to sellers that they either ofer a "right of refusal" and continue to market the property or a renewable monthly option that covers their holding cost.

It’s probably a regional thing, but your uses of the term "bridge loan" ". Designed to wrap up the payments of your old mortgage and your new one to "bridge" the gap between your homes," differs from mine. No big deal, there use to be over 130 different definitions of "cash flow!"

Renting is a viable possibility, but not as a short term solution! Month to month tenants are never a good choice.

There’s one other though that comes to mind. With any form of delayed closing the agent also waits to get paid with his fiduciary.

Bill

Posted by William J. Archambault, Jr. (The Real Estate Investment Institute ) almost 4 years ago

Sometimes is it better to buy then sell.  Some home will not sell because the seller has a difficult time with showings while they live in the home.

Posted by Nesha Jackson (World Wide Realty) almost 4 years ago

Great article Bill, it really depends on the Buyers finiancial condition. Some times buying before selling can sink you ship.  I have seen it with some overly agrresive buyers.

Posted by Steven Nickens, R(S)GRI ABR, Maui Real Estate Hawaii (Elite Pacific Properties Maui) almost 4 years ago

Would you advise your clients to do a 1031 Exchange? 

Posted by R O almost 4 years ago

I have a client currently that did it the right way. They sold their home, and they are in a rental until the right house comes along just so they would not be stressed

Posted by Ed Silva, Central CT Real Estate Broker Serving all equally (RE/MAX Professionals, CT 203-206-0754 ) almost 4 years ago

Every situation is different as well as different markets. Just have to look at it at the time.

Posted by Bill Reddington, Destin Florida Real Estate (Re/max Southern Realty) almost 4 years ago

Yes, in general I agree the first house should be sold (or already under contract) before making the offer for the next home, but there are always exceptions.

Posted by Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900, Family Helping Families Buy & Sell Homes 40+ Years (Get Results Team...Just Call (408) 252-8900!) almost 4 years ago

Bill- I have FIVE pets.  So I really am going to have no choice but to buy before I sell.  I will need to replace carpets and touch up paint and give time for those here and there brown lawn spots to green up again... That being said, my clear plan is to pay it completely off before I buy another.  Because I totally agree that two mortgages are bad bad bad.

Posted by Tammy Lankford,, Broker GA Lake Sinclair/Eatonton/Milledgeville (Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668) almost 4 years ago

Super post, Bill.  Yes, this is challenging for many to afford unless their current mortgage is paid off.

BTW, I think there might be a glitch w/ your footer.

- Debbie

Posted by Women of Westchester Working Together, Women helping Women get ahead (Women of Westchester Working Together) almost 4 years ago

Great post one might think about two of everything before one moves forward

Posted by Laura Filip RE/MAX UTOPIA | 903-271-4978, Your locally owned RE/MAX OFFICE (RE/MAX UTOPIA , Serving all of Texoma ) almost 4 years ago

Bill, 

Excellent points, and well written blog, I love so many things you bring to light here!  This is comprehensive and most people would have never thought of bridge loans.  The use of contingency offers along with the drawbacks to consider are very valuable tips for buyers.  Your analysis of the drawbacks of renting your home out to then have to do a great deal of expensive repairs, negating the rental savings are also a good point.  That point does need qualification though, because if the home isn't very large and rehab costs wouldn't be very large, or if the interest rates are so low, or the home is paid off so that the rent is straight profit (except taxes and insurance) then renting the home may be an excellent option, especially in an appreciating market.

It's also important to consider market conditions, if it is such a sellers market that you may not be able to win a house for several months, or inventory is so low that it might be hard to find exactly what the buyer is looking for, then that is another consideration that might make sense to get a property under contract first before selling yours.  

Love your blog!

Posted by Jared Garfield, Invest With The Best For The Highest Returns! (Rich Life Real Estate Team) almost 4 years ago

Bill - Great post. I helped clients buy a home with an offer contingent on them selling their home first. Luckily they listened to my advice and listed their home at the right price and it sold in 8 days. I was holding my breath the whole time. I usually don't recommend it however, if my clients aren't going to price their home correctly. Still, although my people acheived the goals, they probably paid a little more for the home they brought and got less for the home they sold. 

 

Posted by Rich Cederberg, eXp Realty Agent Albuquerque (eXp Realty) almost 4 years ago

Bill, as always, very nicely written post. And as Tammy mentioned, barring few exceptions, it is not a good idea to buy before selling the home.

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (eXp Realty) almost 4 years ago

It's not wise to buy before selling, unless of course you live in a market where homes are selling fast. i.e. Denver, Colorado!

Posted by Kristal Kraft, Selling Metro Denver Real Estate - 303-589-2022 (The Berkshire Group Realtors) almost 4 years ago

Excellent points!  I recently assisted a client who sold their home and purchased a new one. Of course there was a home sale contingency clause. With proper guidance, these transactions closed smoothly.

Posted by Rosie Moore (Serving Sugar Land, Richmond, Rosenberg, Missouri City) almost 4 years ago

Bill, yes it is an excellent post.  I had Sellers call me this year to say they already bought a home four states away, the wife, children and mother in law have already moved and now all we have to do is sell this one, then the husband can join them. What they forgot to do was remove all the wall paper we talked about, price the home in the recommended price range and keep the home spotless like it was when they all lived under the same roof.  Home didn't sell, out of state REALTOR(r) told then they needed to remove the wallpaper and stage the home...

Posted by Evelyn Johnston, The People You Know, Like and Trust! (Friends & Neighbors Real Estate) almost 4 years ago

Two mortgages is not something that I would ever recommend.  But I had a couple this year that found their dream home.  The current condo was in her name only.  They more than qualified to buy the new home and still cover the old home.  We bought the new one and sold the existing one during the escrow period with the closing to be two weeks after the new house, so timing worked out perfect.  But the pressure was on me to get it done and I pushed hard with lots of marketing to get it sold quickly.  Luckily, it worked.  

Posted by Karen Feltman, Relocation Specialist (Cedar Rapids/Iowa City, IA Lepic-Kroeger REALTORS) almost 4 years ago

If your finances allow, or there is work needed on the buy prior to your occupancy.  Sometimes getting one half a job done makes the remainder much easier to handle.  Imagine not doing this full time for a living...Moving downright stinks.

Posted by Joe Fasone, More...It's What I Do! (Weichert Realtors - Suburban Properties) almost 4 years ago

Bill this is a question that comes up often.  I think you have done an excellent job of outlining what sellers should consider.  Execellent post.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) almost 4 years ago

If I were a richer girl... but yeah, babysteps.

 

Love and light,

Laura

Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) almost 4 years ago

Bill I had this question just a few days ago, I discussed some of these very points.

I suppose the decision is easiest in those markets with no inventory.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) almost 4 years ago

Great post, I agree carrying two mortgages is not a good thing!

Posted by Collette Sarmento, 781*258*9718--Your Agent For Life (Cameron Real Estate Group) almost 4 years ago

Some may want but can they, unless its all cash

Posted by Ron Aguilar, Mortgage & Real Estate Advisor since 1995 (Continental Mortgage) almost 4 years ago

Buying before selling your existing home is never a good idea unless you are in a financial position that allows you to carry both homes with no stress.  

Posted by Terry McCarley, REALTOR, SRES, CDPE - Cape Coral, FL (REMAX Realty Team - Cape Coral FL) almost 4 years ago

Great Post Bill, long time no hear from. Hope all is well in Western MA. Hope you don't mind I'm going to repost this on Google+  Happy Holidays Lisa

Posted by Lisa Coates, Residential Home Sales Specialist (Precision Realty) almost 4 years ago

This is an excellent explanation. Sometimes it's hard to convince sellers to wait to look for properties before they have their home under contract. Many will heed my advice but there is always one who will argue the point.  I was fired this year because a couple insisted on looking for a home before listing theirs. On top of it, the husband had no time to look.  The wife wanted me to drive her around 2 counties and then go back to the homes she had narrowed down to with the husband when he was available. I cant think of a better way to waste time and gas than that. The homes may have been sold by that time. I advised, they didn't like my advice and they fired me.

Posted by Alyse "Aly" Sands (Village Real Estate Services) almost 4 years ago

I would beg to differ with you on the point of contingency. Case in point, I had a great listing in Salem N.H. however the Seller was holding for top dollar and was not motivated enough to accept any of several offers (most lowball) and he said he would wait for the market. I then had a call from a young Lady wanting this home but needing to sell hers - We, at my leadership negotiated the sale of Her home and the purchase of My original Clients home at a fair price. We did this by putting rules and deadlines in place, Giving the Buyer a period of time to secure a viable contract - in this case 6 months - to complicate things even further we negotiated the sale of her home with a Buyer who also needed to close on the home she was selling - I also represented Her. - The moral to this story and my not being able to agree with you is - You as an Agent should be able to offer guidence to your Client and not just shut them out of the market, there are many ways to use the contingency of selling before buying, such as non rufundable deposits and time frames. I am a Broker in Ma N.H. Fla. run my own business and would be VERY upset if an Agent of mine took your tack. - I wish You luck in your enterprise but could not in good concience Refer a Client to you. Regards.

Posted by John Fountain, Broker Associate C21 Northshore NH. & Mass (Century 21 North Shore) almost 4 years ago

Sometimes sellers want to see what they can buy if their home sells.  I don't often recommend it because it can break their heart if it should sell prior to getting their's under contract.  On the other hand, if they find their dream home, they are often more pliable on asking price...

Posted by Carol Tunis, Carol Tunis...a "HouseSold" name! (Florida Homes Realty & Mortgage) almost 4 years ago

Good things for people to know and explained quite well.

During the boom in the 70s and 80s there were a lot on multiple home owners. They would buy, rent it out (or owner carry) and move up. (People were getting 50-100% pay raises during this time). Normally it only took one person to stop making payments for several home owners to be in trouble.

Posted by Than Maynard, Broker - Licensed to List & Sell - 405-990-8862 (Coldwell Banker Heart of Oklahoma) almost 4 years ago

Up until recently- I would always insist that they sell their home first then buy- now that houses are flying off the market- my answer to your question is slowly changing...

Posted by Shanna Hall, I love selling houses!!!St. Louis, MO 314-703-1311 (Real Estate Solutions) almost 4 years ago

I had an unsual situation recently.   I receive a call from a seller who is moving to another state.   They have found their dream home there..."there is not a home more perfect for us".   They want to sell there home here.   I do my usual listing appointment give them the information on the listing price and the aproximate time period in their area.   They were like oh no no we don't want to wait that long to sell our home we want it closed in under 60 days.   I again gave them the facts even if they went below what everyone else was offering it would still take X amount of time to close also gave them options on the rental market here etc.   They thanked me told me they had a lot to think about and would call me.  Not an hour later the wife calls and said we want to list the house for $55,000, we only owe 30,000 on it would you list it for us at that price?  We know you will be getting a cut in commission but that is what we want to do.  I told them I had no problem listing it at $55,000 ($20,000 under market) but only if they slept on it and I would be back over there tomorrow.  So the house listed at $55,000, under contract the next day sold for CASH at $50,000.   My clients think I am the best agent in the world.   They sent me pics of their new home and how happy they are.   Sometimes it just takes a really motivated seller LOL

Posted by Andrea Curtis United Country Premier Properties Certified Military Relocation Professional, Certified Military Residential Specialist (United CountryPremier Properties) almost 4 years ago

I recall several buyers who wanted to buy on the contingency of selling their present home - when their home wasn't even on the market yet. Most of my sellers said no to that - but yes to the ones whose home was already under contract.

Posted by Marte Cliff, your real estate writer (Marte Cliff Copywriting) almost 4 years ago

Thanks everyone for all your comments. There is obviously more than one way to skin a cat.

John Fountain - Out of all the comments I received I will admit yours just blows me away. It is easy to see why you would disagree with me because essentially it looks like you are working for what's best for you and your pocketbook. It seems you placed the dominoes very well to line your pockets with a hefty commission. Luckily for you the first domino fell where you needed it to.

It is interesting to note you had your original clients home off the market for six months all the while someone else could have come along and purchased the home for more than likely more than what you got for it with YOUR client.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) almost 4 years ago

Bill,

Excellent advice that every seller should seriously consider and every agent should espouse.

Posted by Bill and MaryAnn Wagner, Jersey Shore and South Jersey Real Estate (Wagner Real Estate Group) almost 4 years ago
I would beg to differ with you on the point of contingency. Case in point, I had a great listing in Salem N.H. however the Seller was holding for top dollar and was not motivated enough to accept any of several offers (most lowball) and he said he would wait for the market. I then had a call from a young Lady wanting this home but needing to sell hers - We, at my leadership negotiated the sale of Her home and the purchase of My original Clients home at a fair price. We did this by putting rules and deadlines in place, Giving the Buyer a period of time to secure a viable contract - in this case 6 months - to complicate things even further we negotiated the sale of her home with a Buyer who also needed to close on the home she was selling - I also represented Her. - The moral to this story and my not being able to agree with you is - You as an Agent should be able to offer guidence to your Client and not just shut them out of the market, there are many ways to use the contingency of selling before buying, such as non rufundable deposits and time frames. I am a Broker in Ma N.H. Fla. run my own business and would be VERY upset if an Agent of mine took your tack. - I wish You luck in your enterprise but could not in good concience Refer a Client to you. Regards - See more at: http://activerain.com/blogsview/4274273/an-answer-to-a-lead-blog-buy-a-home-before-selling-the-one-you-own-#sthash.L1opStDH.dpuf

As stated in my response which for some strange reason is not visable - My Seller was not motivated, However I did not mention in my response that the property remained on the market active, and the Seller & Buyer had a performance clause in effect - so the Seller could have at any time given the Buyer with the contingency 30 days or quit thus freeing his hand to close with another Buyer - I keep my Clients best interest first and formost in mind,and am educated enough to enable my Client to use what R/E contracts are drafted for - To sell homes and Protect the Client.

Hence this is why I do not agree with your Blog-I see that you assumed that my Clients home was OFFthe market - not so.

It is interesting to note

 

 

 

Posted by John Fountain, Broker Associate C21 Northshore NH. & Mass (Century 21 North Shore) almost 4 years ago

All good alternatives to consider.  The sellers strategy should also take market conditions into consideration. The market in Houston is moving very quickly, so contingency offers aren't favorably received. When it was a buyer's market there were a lot of sellers who would accept a contingency if the buyer's house was on the market, and even better, under contract. Bridge loans aren't available in every state so that's not a consideration for everyone.

Posted by Debra Hight, Debra Hight (Coldwell Banker United, Realtors) almost 4 years ago

Buying before selling can be tricky, but it can turn out okay if it is done right. You have it down quite good. The other way around also requires some expertise in handling the transaction. Coincidentally, I have a seller who is demanding that the closing of his home be contingent on finding the right home to buy, and closing escrow. At the same time, he wants to be sure that when he finds the right home to buy his acquired home will not close escrow until his existing home closes escrow. Any advice? I'm not sure how to handle it, and my broker isn't much help. 

Posted by Flavia Brown, Realty One Group United (310-374-9093) almost 4 years ago

In really hot markets like Silicon Valley its almost a necessity to sell first.  Almost nobody will take a contingent offer which means closing before buying.  While not ideal and with some risk, it's just part of the current market dynamic.

Posted by Bryan Robertson, Broker, Author, Speaker (Intero Real Estate) almost 4 years ago

Making the jump from the old to the new house can be tough.  Especially in a market where contingency offers are not looked upon well.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) almost 4 years ago

Well in my area it's a no-go on contingent sales. There are no bridge loans anymore in my area that I can find so that ends that portion of suggested ways. More & more lenders are getting more particular about people renting their homes also because 9 times out of 10, they don't know what they are doing so vacancy rates are high.

Posted by Lyn Sims, Schaumburg IL Area Real Estate (RE/MAX Suburban) almost 4 years ago

Bill-You laid out the options very nicely. We see contingent sales on occassion if the Buyer has their home under contract. Still not a slam dunk the deal will get done but it works enough that some Seller's are willing to give it a go.

Posted by Wayne Johnson, San Antonio REALTOR, San Antonio Homes For Sale (Coldwell Banker D'Ann Harper REALTORS®) almost 4 years ago

I think the main problem people face when buying before selling is all of a sudden, they don't give a crap about their existing home and will do anything and everything to dump it as quickly as possible. Even if they think they won't succumb to that emotion and thought process, they do, and in doing so they throw away thousands of dollars.

Posted by Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents, Put 40 years of experience to work for you (Lyon Real Estate) almost 4 years ago

Thanks Bill! Shared on our FB and Twitter and sending to a client because you did a great job of laying out options. 

Our Team remains creative in the process.  Joy

Posted by Joy Carter & Jeff Booker Brother and Sister Team, Trust Your Family's Move To Our Expertise! (Keller Williams Parkland/Coral Springs Realty-GreatFloridaHomes Team) almost 4 years ago

If only more people could afford to sell their existing home AFTER they've moved and the emotion and attachment has been moved.

Posted by Jim Beitz (Keller Williams Success Realty) almost 4 years ago

Generally wouldn't recommend it. Even for sellers that can afford to carry two homes, as soon as they're making two payments it starts to eat at them.

Posted by Aaron Hofmann, aka Mr. Smyrna Vinings (Atlanta Communities) almost 4 years ago

Great post and you put all the options out there.  If they can afford it and know the risk(selling for a lower price) then it is a go.  Otherwise it is probably best to wait unless they can pay both mortgages for an extended period of time.

Posted by Ric Mills, Integrity, Honesty, and Vast Real Estate Knowledge (Keller Williams Southern Az) almost 4 years ago

In my opinion, it is best to sell before purchasing, even though it may mean an interim move in a fast paced market.

Posted by Sharon Parisi, Dallas Homes (United Real Estate Dallas ) almost 4 years ago

I'm OK with buying before selling but only if (1) you afford both payments for a fairly long period and (2) you really must have that new home because there's something unique about it that has made finidng your next home difficult. It is clearly taking a risk and that needs to be thought through before proceeding.

Posted by Judie Berger, Sarasota Luxury Homes Expert (Premier Sothebys International Realty) almost 4 years ago

It's a common question and I pretty much recount the same options with pros and cons. Been there myself a couple of times through relocations.

 

Posted by Jeff Dowler, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) almost 4 years ago

As with any situation, there are some that can handle it and some who can't.  For those who understand the entirety of the situation it is a great option to buy the home of your dreams before someone else does.  For others it could be the start of financial ruin.  It depends on the individuals involved.

Posted by Raymond Patterson, President - Patterson Team Homes (The Patterson Team @ Keller Williams Excellence) almost 4 years ago

Do the sellers want to lose thousands of dollars, if so then they should buy first then sell.  

Posted by Jim Miner, Loan Modfication & Short Sale Specialist (Miner Noh & Associates) almost 4 years ago

Hi Bill, another "wrinkle" to this is when the seller is building their dream home, and wants to wait until they are closer to completion of that home before selling their existing home.  We discussed the pros and cons with them, and they are willing to take the risk in delaying the sale of their current home.  Thanks for the great post!

Posted by Alexander- Slocum, Realty Team- Vancouver WA Real Estate (Premiere Property Group, LLC - Vancouver Washington) almost 4 years ago

Many of you have left really good points. I appreciate all of your comments. It is interesting to see how some markets vary slightly on what is common and what is not.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) almost 4 years ago

Your last two sentences wraps it up nicely with a perfect bow--if you don't want two mortgages, don't do it.

Posted by Norma Toering Broker for Palos Verdes and Beach Cities, Palos Verdes & Beach Cities Homes in L.A. (Charlemagne International Properties) almost 4 years ago

To me it all boils down to... do you make enough to do it and are you comfortable with the possibility of 2 mortgages for a time. If the answer is you make enough and you dont mind then OK but your advice is sound

Posted by David Shamansky, Creative, Aggressive & 560 FICO - OK, Colorado Mtg (US Mortgages - David Shamansky) almost 4 years ago

Two mortgages may sound doable until you get into five or six months of double payments.  Always try to seel before you buy if money is an issue to you.

Posted by Marnie Matarese, Showing you the best of Sarasota! (DWELL REAL ESTATE) almost 4 years ago

Happy Holidays, Bill.  I included a link to your 20 real estate tips in my upcoming newsletter (going out later this week) and I'm including this post and that one in my upcoming hootsuite updates.

Posted by Women of Westchester Working Together, Women helping Women get ahead (Women of Westchester Working Together) almost 4 years ago

Thanks very much Debbie I appreciate you sharing the post!

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) almost 4 years ago

Well written article Bill that provides insight if it's wise to buy a home before selling the one that  they currently have. This is of great information to home owners who are planning to do such action. Thank you for sharing and keep them coming.

Posted by Katerina Gasset, Get It Done For Me Virtual Services (Get It Done For Me Virtual Services ) almost 4 years ago

Unfortunately, if the offer is contingent upon the sale of any property owned by Buyers, it is unlikely it is going to be accepted if Sellers who received multiple offers...

Posted by Inna Ivchenko, Realtor® • Green • GRI • HAFA • PSC Los Angeles CA (Barcode Properties) almost 4 years ago
This is very good information Bill. You laid it all out pretty well. Keep it up and stay the best!
Posted by Barbara Gregus, Sandia Park Paa-ko Homes (CARES Consumer Advantage Real Estate Services) almost 4 years ago

Good info- well written.  I need to print and give to my clients. lol

Posted by Cindy Graesser, CG Premier Realty Group. "We'll Get you Moving!" (Keller Williams) almost 4 years ago

Great information! Thanks for sharing.

 

 

Chicago2NapervilleRealEstate.com

Posted by Joe Graham, Naperville Real Estate Marketing Specialist (Graham Real Estate Group) over 3 years ago

Great article Bill Gassett ! I reblogged!

Posted by AnnMarie Belair, Sterling Realty Belair, INC (Real Estate Worcester County MA) almost 3 years ago

Thanks AnnMarie Belair I never got the notification - just seeing this now.

Posted by Bill Gassett, Metrowest Massachusetts Real Estate (RE/MAX Executive Realty) over 2 years ago

This is the age old question but i agree with you to sell your home first and then buy a replacement. i would add, the sellesr should strat looking at available homes to get a jump start on their quest. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) over 2 years ago

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