68

Compared to the other answers, I feel like I'm taking crazy pills, because: Is my following calculation correct? Sorry to be the bearer of bad news, but no, this is not correct. In 3 years, if the market gets soft, and I have to sell the house for $200,000. Am I still better off than renting, because, $180,000 (taking off 20k for the realtors and ...


54

You can make a contingent offer: "I will buy this house if I sell my own." In a highly competitive environment, contingent offers tend to be ignored. (Another commentator described such a contingency clause as synonymous with "Please Reject Me".) You can get a bridge loan: you borrow money for a short term, at punishingly high interest. If your house ...


45

You negotiate with the buyer's realtor, just like a seller's realtor would do. He already has a contract with the buyers that says he won't charge them a commission. He will have to get it from you. You will tell the realtor his clients will have to offer more to cover his commission, and he will resist. And eventually you will either agree a price and a ...


40

the highest offer we could make is substantially below the asking price by around 5%. I wouldn't necessarily call that 'substantial', especially if the property has been on the market some time (I surmise this from "sales in our local area are slow"). That you are ready to proceed also makes you a strong contender, and reduces the window of opportunity for ...


28

There are other things you need to account for in your math: Property Taxes Home Insurance Utilities Maintenance Neighborhood dues (maybe) Yes you build up equity in the house, but you still pay interest on your mortgage plus all of the above factors. Closing costs of getting a mortgage should also be considered, but that's a one-time upfront cost and ...


25

We’re in Utah rather than Florida, but we bought our house like this (almost 6 years ago). The seller wanted nothing to do with an agent and did not list the home anywhere, but just had a sign in their yard. However, we wanted an agent to make sure everything was done properly. The agent asked them to pay the standard commission, and they refused. We decided ...


15

The two most common scenarios are: You put an offer on a house which is conditional on you selling your own house first. You sell your house with the condition that you will rent it from the new owner until you purchase a new house. Since you have more control of timing when you are the buyer compared to when you are the seller, #1 is probably more common, ...


13

A bridge loan (or bridging loan) is designed for exactly this circumstance. They're short-term loans (6 months is common) designed to help home-buyers to bridge the gap between buying and selling. MoneySupermarket defines them like this: Bridging loans are designed to help people complete the purchase of a property before selling their existing home by ...


12

If you can qualify for two mortgages, this is certainly possible. For this you can talk to a banker. However, most people do not qualify for two mortgages so they go a different route. They make offers on a new home with a contingency to sell the existing home. A good Realtor will walk you through this and any possible side effects. Keep in mind that ...


10

is this how it usually works? Usually, the seller hires a realtor and agrees to a commission the realtor will get in case of a sale. This commission is included in the price, so the seller receives the amount the buyer offers minus commission. Part of it is shared with buyer's realtor if they have one. In your case, this commission is not agreed upon when ...


9

(Disclosure - I have a Realtor license) You are free to negotiate any deal you wish. There are brokers who may be willing to list your home for a $1000 flat fee and 2% to the buyer broker. Another might be willing to put it up on MLS for you for a small fee, and not provide any other service. You sound like a candidate for FSBO, for sale by owner. You ...


9

Typically, in the U.S., buyer- and seller- agents (or Realtors) acquire their commission from the purchase price. If you don't have a seller-agent, then that commission is not paid. Example: You list the house at $200,000. Standard commission values are 3/2%, which means 3% for the first $100,000, 2% thereafter. Sometimes they're 3/1.5% or 3/1%, but usually ...


9

You asked, What is the best way to maximize growth on this sum of money And you gave some constraints: given that the time frame for investment would be short (no more than 1 year), it needs to be extremely liquid, and it needs to be a very safe investment since I am making concrete plans based on the amount. Is a simple savings account the best ...


8

Some things immediately spring to mind: If the remaining lease term is short (75-80 years or less), buyers will struggle to get a mortgage on the property and in turn you may struggle to find a buyer and/or you may have to accept a reduced price. Unless you pay to extend the lease or agree to start the process of doing so and negotiate the costs into the ...


8

First off this house is a very odd configuration. Twelve bedrooms and three baths in a 2500 sq ft home? The bedrooms must be pretty darn small. These things are key to your question: ...I'm a programmer, not a DIY guy. ...but my ex sigh rushed us into the purchase... First off, money in real estate is typically made at the buy, and it sounds ...


8

Your friend and her husband should urgently consult a lawyer. Worst case they are fully responsible for the mortgage while owning only half of the house. I really, really hope that you or they misunderstood something.


8

Assuming it's under English law - Scotland is different - then offers are not binding. Similarly, acceptance of offers by the seller aren't binding either. It only becomes binding when the contracts are exchanged. If you are in Scotland, then check the local law. This means that gazumping is possible, and there's nothing you can do to stop it, other than ...


7

Am I better off? Not necessarily. Renting: Buying a service. You are paying 54k for the 'service' of housing. You do not own any asset. Buying: Buying an asset, of course. Not only are you purchasing an asset, but you must also service the debt associated with it. You must also maintain the asset. This must all be done to provide yourself the same housing ...


7

"listed as an equal co-owner" means just that. Heck, he might own half if your friend+husband are considered a single unit. After all, they are only paying the mortgage because the other friend is paying the rent. Did your two friends have a contract specifying ownership percentage?


6

If you want to buy a house for below market price, don't fall in love with the house. Look at many houses, and focus on those which are short-sales or distressed properties. Alternatively look for properties which have been on the market for some time and have not had many viewings, and appear to be undervalued, but which also show potential. Keep an eye ...


5

There's also the option to put most of your stuff into storage and rent an apartment or go to an extended stay hotel. Some apartments have month-by-month options at a higher rate, though you may need to ask around. I've known some people to use this as their primary plan because it was easier for them to keep the house clean and ready to show when it's ...


5

You can definitely get access to cash during the selling of your home and buying of a new one. Think of the home sale and buy as two distinct transactions. You sell your house, come away with some amount of cash, let's say $180k. You do what you want with that money, in this case, maybe you want to put down $150k on the new house to have a little extra ...


5

For the sake of putting in an answer, Interestingly, real estate sales paradigms are culturally and regionally driven; you can't, really, deviate from those. For example, in Sydney Australia, it's totally and completely normal to auction a house for sale. In other markets, the practice is totally unknown, and if you did (somehow, the mechanism barely ...


5

The thinking might be very logical; yet the usual problem is that you do not have the data to make the optimal decision: if there are other buyers and how much are they willing to offer; how quickly does the seller need the money... The rule of thumb is that the lower your offer the more risk that it will not be accepted. Having said that: But if we ...


4

There is no standard way to divide property under these circumstances. This is why lawyers recommend agreeing how property will be divided up front, and why they make so much money sorting out issues like this when couples divorce. Incidentally, you don't say which country you are in, but in many countries if you have lived together for five years, your ...


4

I've heard that the bank may agree to a "one time adjustment" to lower the payments on Mortgage #2 because of paying a very large payment. Is this something that really happens? It's to the banks advantage to reduce the payments in that situation. If they were willing to loan you money previously, they should still be willing. If they keep the payments ...


4

1) You parents will have to pay tax on the gain as it wasn't their primary home. You don’t pay Capital Gains Tax when you sell (or ‘dispose of’) your home if all of the following apply: you have one home and you’ve lived in it as your main home for all the time you’ve owned it you haven’t let part of it out - this doesn’t include having a ...


4

Let's look at the potential outcomes - With tenant - The buyer wants to live in the house. Buyer needs to wait until the lease expires, or if tenant is monthly, evict the tenant. This can be off-putting to a buyer. Or - it's an investor - If the tenant has been well vetted, a good history of payments, etc, this can be a good thing. I am an agent, and work ...


4

I actually did a very similar calculation recently, and I think it is a good exercise. It is difficult to be precise, but useful to get a general idea to help with your decision. Here is the general formula I used, which you will need to do once for buying and once for renting: gross cost - value gained/saved = net cost Deciding what goes into those ...


4

From a real estate legal advice site, the seller may be liable if: The seller gave the buyer some sort of warranty or guaranty The seller committed fraud - usually a material (or important) misrepresentation (or lie) It's also possible that your home inspector is at fault, having done a poor inspection. As noted on the legal advice page above: As to the ...


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