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Selling and buying a home at same time....

Bigbore500r

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We've been playing with the idea of selling our house and moving. The plan was to get the house perfect, sell and get top dollar, and then walk away with the proceeds and be a contingent-free buyer for the next property. We would rent month-month if we have to, so we aren't rushed into buying and can find what we really want.

But.....

A house came up that checks all the boxes, in an area we like, for a good price. I'd be willing to take less for my house for a quick sale as-is, and get this house. Total opposite plan from above....

Who has bought and sold at same time? It seems like a stress ball and a pain in the ass. I'm sure an offer contingent on my house selling isn't as desirable as some other the buyer would receive. The good thing is, i'd be coming in with 40% down.

Any advise? Pitfalls to watch out for? How successful is it to buy a home contingent upon selling yours? Houses in my area sell quick, and I would price to sell.
 

530RL

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Depending upon the area and that market, most sellers right now are not that interested in a deal contingent upon your house selling.

If they are not interested in a contingent close and you are getting what you believe to be a good deal, you can always get a hard money loan for the short period while you sell your house.
 

rivrrts429

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I would agree with 530. Put the shoe on the other foot and you’re the seller in a hot market. You going to take the contingent or no contingency? It’s still largely a sellers market and a lot of cash is floating around.

I had $200k put down on a $350k home purchase and still had to fend off half a dozen all cash offers. A lights out Rocky Balboa type realtor in my corner made all the difference.
 

Springfield

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Jerry,
The California sales market seems pretty hot and homes are selling quickly. As previously stated contingent of sale isn't attractive if multiple offers. Most sellers would at least like to see you in escrow when looking at your offer. It is best if you can sell and rent back for a bit to shop and select your new home. Selling and buying to close concurrent adds pressure and you don't want to just settle on your next home. You have my number if you want to chat.

Michael
 

Englewood

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Price your home right and it will sell. If you have a strong buyer with tight timelines, you can purchase the next one as non-contingent. This is a situation where a good agent is worth their weight in gold.
 

Cole Trickle

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I would agree with 530. Put the shoe on the other foot and you’re the seller in a hot market. You going to take the contingent or no contingency? It’s still largely a sellers market and a lot of cash is floating around.

I had $200k put down on a $350k home purchase and still had to fend off half a dozen all cash offers. A lights out Rocky Balboa type realtor in my corner made all the difference.

That market has passed.....

A couple years ago when things were flying off the shelf any deal was tough if you didn't have cash.

Things are moving a little slower now. It was almost dead for 6 months but seems to have picked up a little in the past couple months due to the rates decreasing.

Give it a go.
 

Springfield

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Price your home right and it will sell. If you have a strong buyer with tight timelines, you can purchase the next one as non-contingent. This is a situation where a good agent is worth their weight in gold.
And get a larger deposit on your sale than you make on the upleg to cover your ass.
 

73beast

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My son did this and was a pain for him as he needed the money from old house to fund new house. Managed to do this on a thursday by 5:00pm,then had to be out of old house on friday by 5:00pm. Got it done ,new house was less than 5 miles away,three pickups ,one pulling an 12ft trailer and four guys doing the moving..
 

spectras only

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It all depends on the area. You can do it if the RE market is robust where you're. We did sell/buy house same time twice. It helps making the decision easier if you have no mortgage and have founds to back it. In both case, we sold our places within two weeks. Our last we did best, selling our place 80K over asking and getting the new place for way under market value.:) Our new house increased its assessment value over 200K in less than 3 yrs. Right now, RE is a bit stagnant here because of BC's clamp down on foreign [ chinese money laundering in RE around Vancouver ] investors scheming.
 

Ziggy

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We've been playing with the idea of selling our house and moving. The plan was to get the house perfect, sell and get top dollar, and then walk away with the proceeds and be a contingent-free buyer for the next property. We would rent month-month if we have to, so we aren't rushed into buying and can find what we really want.

But.....

A house came up that checks all the boxes, in an area we like, for a good price. I'd be willing to take less for my house for a quick sale as-is, and get this house. Total opposite plan from above....

Who has bought and sold at same time? It seems like a stress ball and a pain in the ass. I'm sure an offer contingent on my house selling isn't as desirable as some other the buyer would receive. The good thing is, i'd be coming in with 40% down.

Any advise? Pitfalls to watch out for? How successful is it to buy a home contingent upon selling yours? Houses in my area sell quick, and I would price to sell.

@Riley1
 

BHC Vic

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We just did it. There’s some posts about it on here. It all worked out but it was super stressful. At one point I had some sort of anxiety/panic attack, that was gnarly. I would do it all over again though because we absolutely love our new place.
 

BHC Vic

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If you recall I was also out of town when the move took place. Timing didn’t work out as planned
 

Wizard29

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When my fiancée and I bought our current house last year, we had TWO houses to sell - hers and mine - in order to buy the new one. The seller accepted our offer and it was stressful, but it can be done.

Selling one house while buying another is actually relatively easy if the seller is willing to accept your offer with that contingency.
 

RiverDave

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Tell your agent you want to make a contingent offer. Worst the seller can say is no.. if they say no then revisit with a new strategy
 

j21black

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We've been playing with the idea of selling our house and moving. The plan was to get the house perfect, sell and get top dollar, and then walk away with the proceeds and be a contingent-free buyer for the next property. We would rent month-month if we have to, so we aren't rushed into buying and can find what we really want.

But.....

A house came up that checks all the boxes, in an area we like, for a good price. I'd be willing to take less for my house for a quick sale as-is, and get this house. Total opposite plan from above....

Who has bought and sold at same time? It seems like a stress ball and a pain in the ass. I'm sure an offer contingent on my house selling isn't as desirable as some other the buyer would receive. The good thing is, i'd be coming in with 40% down.

Any advise? Pitfalls to watch out for? How successful is it to buy a home contingent upon selling yours? Houses in my area sell quick, and I would price to sell.


I've done it, had to carry the mortgage on the first property for a few weeks so the buyers could get their ducks in a row.

It started out as contingent on the house I already owned closing (already under contract), but it got drug out 90+ days so we changed it to carry both mortgages. I grabbed some money from my 401k, and paid it back once the 1st house closed.

It wasn't a big deal, but dealing with the banks was a royal PIA.....
 

BHC Vic

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When my fiancée and I bought our current house last year, we had TWO houses to sell - hers and mine - in order to buy the new one. The seller accepted our offer and it was stressful, but it can be done.

Selling one house while buying another is actually relatively easy if the seller is willing to accept your offer with that contingency.
Up until the person buying your house walks away or the inspection goes south... we got super lucky the sellers were willing to take a chance and wait. I think my kids played a huge part in why they chose our offer
 

stephenkatsea

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We found a house we wanted in LHC, our offer was accepted, realtor hooked us up with a loan broker who was offering a mortgage we could handle, but we told that broker we intended to pay off any mortgage as soon as our Camarillo home sold. Although, it wasn't even listed yet. And we would not accept a LHC mortgage with any prepayment penalty whatsoever. Our credit rating was over 800. We signed mortgage papers for a loan we were happy with. We closed, prepared the Camarillo house for sale, moved into the LHC house. Camarillo went on the market, it sold in one day for 0.5% less than our asking. Our first LHC mortgage payment wasn't due for a month. We received the funds from the sell of the Camarillo house and immediately paid off the entire mortgage on the LHC house. We never made even one payment. About 3 months later we got a call from that mortgage broker. He was severely pissed off. Said because of what we had done he wasn't going to receive a dime on that mortgage. I told him he could go pound friggin' sand, because we had done exactly what we had previously told him we had planned to do and nothing more than that.
 
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Bigbore500r

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Also thought about just keeping the current home as a rental, pulling some equity and throwing it in savings. Let that house establish itself as a rental with income on the books for a year, then go qualify for another mortgage and use the money we pulled as 20% down.....plus the cash would be sitting in savings for a year and "seasoned".

Then we're not giving 30k to realtors to sell, paying closing costs, termite....etc etc.

The house would full-cover and pull 2800 a month in rent, break even.

A little risky but would pay dividends in the future.
 

Riley1

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We've been playing with the idea of selling our house and moving. The plan was to get the house perfect, sell and get top dollar, and then walk away with the proceeds and be a contingent-free buyer for the next property. We would rent month-month if we have to, so we aren't rushed into buying and can find what we really want.

But.....

A house came up that checks all the boxes, in an area we like, for a good price. I'd be willing to take less for my house for a quick sale as-is, and get this house. Total opposite plan from above....

Who has bought and sold at same time? It seems like a stress ball and a pain in the ass. I'm sure an offer contingent on my house selling isn't as desirable as some other the buyer would receive. The good thing is, i'd be coming in with 40% down.

Any advise? Pitfalls to watch out for? How successful is it to buy a home contingent upon selling yours? Houses in my area sell quick, and I would price to sell.
In the middle right now. I feel the worst part is not having the same amount of negotiating power. I have wanted to tell the buyer to F-off more than a couple times. But knowing that delays here would effect two other families down the line kept me from resisting.
I know everyone says it’s business and don’t let it get personal. But I’m not going to put another family through this roller coaster of moving more than once if I can help it. All in all, I think I’ve lost maybe 10-15 grand by being in a rush and by buying while selling. Dropped the house 10 for a quick sell, and agreed to a credit to not fall out of escrow.

School schedule played into this as well.

Losing a couple grand, I’ll make that back in short time.
Telling Newsom to get F*cked by taking my family and Tax Dollars to another State. PRICELESS. lol
 

Riley1

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Also thought about just keeping the current home as a rental, pulling some equity and throwing it in savings. Let that house establish itself as a rental with income on the books for a year, then go qualify for another mortgage and use the money we pulled as 20% down.....plus the cash would be sitting in savings for a year and "seasoned".

Then we're not giving 30k to realtors to sell, paying closing costs, termite....etc etc.

The house would full-cover and pull 2800 a month in rent, break even.

A little risky but would pay dividends in the future.
That was the original plan. But heard a few horror stories about people loosing their houses due to bad tenets. They have way more rights than the “greedy” landlords in this state.
 

varmit86

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That was the original plan. But heard a few horror stories about people loosing their houses due to bad tenets. They have way more rights than the “greedy” landlords in this state.
X2 California land of the lawyers isn't that what it days on the license plates now.
So glad I am out of there!

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SKIDMARC

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I did the same thing last year. The best thing is to have your house in escrow. If not its a hard deal for the other seller. That what I had to do.
 

outboard_256

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My friend did that, it worked out for him. I went a different route, bought the 2nd home and was going to sell the first after we moved but ended up finding a good property manager to handle the 1st house. He takes out 7% of the rent and deals with everything. First few years were a little tight but now really happy we kept the 2nd house.
 

hallett21

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Also thought about just keeping the current home as a rental, pulling some equity and throwing it in savings. Let that house establish itself as a rental with income on the books for a year, then go qualify for another mortgage and use the money we pulled as 20% down.....plus the cash would be sitting in savings for a year and "seasoned".

Then we're not giving 30k to realtors to sell, paying closing costs, termite....etc etc.

The house would full-cover and pull 2800 a month in rent, break even.

A little risky but would pay dividends in the future.

One of the loan guys can confirm but I believe you’re only allowed to count 75% of your rental income when getting another mortgage.


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Bigbore500r

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One of the loan guys can confirm but I believe you’re only allowed to count 75% of your rental income when getting another mortgage.


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If you have at least 20% equity in the home I believe they will count it as a full cover
 

LargeOrangeFont

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Also thought about just keeping the current home as a rental, pulling some equity and throwing it in savings. Let that house establish itself as a rental with income on the books for a year, then go qualify for another mortgage and use the money we pulled as 20% down.....plus the cash would be sitting in savings for a year and "seasoned".

Then we're not giving 30k to realtors to sell, paying closing costs, termite....etc etc.

The house would full-cover and pull 2800 a month in rent, break even.

A little risky but would pay dividends in the future.

Do that.
 

shintoooo

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We did it, but we didn't put a contingency on buying another house. We instead rented our house back for two months after the close of escrow and that was all agreed upon by the buyer before we opened escrow.

While we were in escrow on the house we were selling, we started looking at houses to buy. We closed escrow August 15th on the sale and rented it back as agreed per escrow until October 15th. We closed escrow on our new house on September 20th and did all the renovations before we moved in on October 15th.

It was one of the most stressful things I have ever done in my life. I lost a lot of sleep during those two months lol.
 

OldSchoolBoats

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60 day rent back of your current house after escrow closes. 30 days to find new property and 30 days to close new house.

Done and done.

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Bigbore500r

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60 day rent back of your current house after escrow closes. 30 days to find new property and 30 days to close new house.

Done and done.

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Joe, the rule for a lender considering your rental as a "full cover" is contingent upon having 20% equity in the property right?
 

OldSchoolBoats

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If you have at least 20% equity in the home I believe they will count it as a full cover
One of the loan guys can confirm but I believe you’re only allowed to count 75% of your rental income when getting another mortgage.


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If you are departing, FNMA will allow 75% of the lease agreement to be used, however it can only be used to offset the current mortgage payment and no income can be used to qualify. All you need is an executed lease agreement, no proof of payment or security deposit. Easy peasy.

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OldSchoolBoats

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Joe, the rule for a lender considering your rental as a "full cover" is contingent upon having 20% equity in the property right?
Na, they did away with that. Just need a lease agreement now and a good LOE as to why you are departing. Call me. Just did one 2 months ago and it was a lot crazier than what you are trying to do.

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grumpy88

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Where is the new place ? Every other house on the west side hood is for sale right now . Its really causing home prices over here to tank .
 

spectracular

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Lost sleep when we moved to TN. best advice I can give is to line up temporary housing and do everything in phases. Bite sized pieces. We had temp housing AND rented our new place back to the seller because their new place want ready.

It never hurts to ask for “on contingency” but as pointed out earlier, it’s a total crapshoot. Same thing with going in with a huge deposit. Unless you are all cash...you are just another person that has to go through ALL of the bank/loan bullshit.
 

Deja_Vu

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It’s muy stressful dude. Especially if your timing isn’t as good like my situation. Havasu house is on the market and had contingent deal here in Tucson to build new but lost that deal cause my contingency expired. Doh

I agree with the rental strategy if you aren’t super attached to the property and can stomach some damage here and there. Renters are hard on stuff.
 
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