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catch22 for housing tradeup?

What if the housing crises gives you a tempting opportunity? A dream home becomes available, and in desperation the price even drops to affordable levels. But it is very uncertain that you can sell your home in timely fashion in order to get it. What is the financially prudent approach... just ignore the opportunity because the crises is a two edged sword?

A problem is that all motivation to move vanishes if that one target house is snapped up. So it's hard to justify a lot of typical slow processes - decisiveness seems the thing! It's not absolutely needed to get money out of the old house right away although it would be extremely preferable. Assume no loan problems, but just wanting to be financially responsible, avoiding pitfalls like falling out of the cap gain timeframes, but taking advantage of any unconventional methods suitable for unusual times... tks

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Reply to
dumbstruck
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You can make an offer contingent on the sale of your house.

-- Ron

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Reply to
Ron Peterson

You can also make the offer contingent on winning the lottery. In this market, making a sale contingent on selling a house is pretty much the same as saying that you are not serious about the purchase, and that you might come back with the money a year later. No seller that has any choice is going to stand for that.

-john-

Reply to
John A. Weeks III

The main risk is you will own two houses for some unknown time. If that is frightening, then stay away. It it is tolerable then talk to a realtor to better understand the risk. You current house may be saleable in a reasonable time.

Frank

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Reply to
FranksPlace2

sell house A before putting any money into house B.

This means you rent between A and B, or work with buyer of A or seller of B on the timing.

"Opportunity"=investment of some sort. This example would be why real estate is really not a good investment- the liquidity in this case hurts you when selling house A.

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Reply to
jIM

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Reply to
PeterL

I don't see where your question has anything directly to do with "the housing crises". At *any* time that you are trying to both sell and buy, you are probably going to be in the driver's seat on one side of the transaction and hoping against hope on the other.

Search the archives of this group for the usual ideas -- bridge loans, lease-option, and so on. Just as the home you might buy has come down in price out of "desperation", so you too will be able to sell your home in short order if you price it appropriately.

Do it if it makes sense. The only people guaranteed to make money on the deal are the realty agents and mortgage brokers. Contrary to John's post, why not make an offer contingent on sale of your home? The real estate agent has a fiduciary duty to present the offer, what does it cost you?

-Mark Bole

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Reply to
Mark Bole

You might consider keeping the old house and renting it to tenants for some period of time until the market picks up again and then maybe even sell it at a higher price than you could get now.

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Reply to
Don

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