Sell current home, use for down payment on next home

[Anonymous]

Anonymous wrote:

Anonymous wrote:Shop around for realtors. Some of them will contribute part of their commission towards closing costs. Some may not tell you up front, but ask!

This. The PP who just signed a contract, I did my own research so realtor had very little to do, we asked for 1% rebate and we got it. We also got a 1% rebate from sale of our previous house.

Interesting! Was it the same realtor for both transactions?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We're hoping to sell our current (and first) home for about $450k. After paying off the mortgage (250k balance), we'd like to use that 200k net as down payment on an upgrade to a home that is in the $700-800k range. How feasible/realistic is this?

Learned so much buying our first home... But it was only the beginning!

It's totally doable and realistic. On a 800k home, 20% is 160k so even if you net less than 200k you are fine. We have put a contract on a 900k property and we put 300k down, in my mind our scenarios aren't too different.

Is the 300k from the sale of your previous home? If so, how'd you manage that situation (timing it to sell and flip proceeds to make down payment on next home)?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We're hoping to sell our current (and first) home for about $450k. After paying off the mortgage (250k balance), we'd like to use that 200k net as down payment on an upgrade to a home that is in the $700-800k range. How feasible/realistic is this?

Learned so much buying our first home... But it was only the beginning!

It's totally doable and realistic. On a 800k home, 20% is 160k so even if you net less than 200k you are fine. We have put a contract on a 900k property and we put 300k down, in my mind our scenarios aren't too different.

Is the 300k from the sale of your previous home? If so, how'd you manage that situation (timing it to sell and flip proceeds to make down payment on next home)?

I'm really curious about this. No way everyone buying a higher priced home has the cash all saved and ready to go--have to imagine many folks use the proceeds from a home sale as down payment on the upgrade. How does one manage that situation? The timing, finances, negotiation on the next purchase, etc?

[Anonymous]

the folks we bought our house from negotiated a 60 day close and 60 day rent back. they took that 60 days to target an area hard and look at inventory, then put a contract in right after our closing when they had the $$

they used the 60 day rent back to close on their new house and then let the kids finish the school year. pretty smart i think. of course they had more power in the purchase as we were in a competitive bidding situation. not everyone is comfortable with a rentback but our housing situation was flexible so we were good with it, for the price we bid.

[Anonymous]

Anonymous wrote:the folks we bought our house from negotiated a 60 day close and 60 day rent back. they took that 60 days to target an area hard and look at inventory, then put a contract in right after our closing when they had the $$

they used the 60 day rent back to close on their new house and then let the kids finish the school year. pretty smart i think. of course they had more power in the purchase as we were in a competitive bidding situation. not everyone is comfortable with a rentback but our housing situation was flexible so we were good with it, for the price we bid.

"Rent back", meaning the sellers negotiated to pay the buyer rent to stay in the house AFTER closing??

[Anonymous]

Anonymous wrote:

Anonymous wrote:the folks we bought our house from negotiated a 60 day close and 60 day rent back. they took that 60 days to target an area hard and look at inventory, then put a contract in right after our closing when they had the $$

they used the 60 day rent back to close on their new house and then let the kids finish the school year. pretty smart i think. of course they had more power in the purchase as we were in a competitive bidding situation. not everyone is comfortable with a rentback but our housing situation was flexible so we were good with it, for the price we bid.

"Rent back", meaning the sellers negotiated to pay the buyer rent to stay in the house AFTER closing??

Yes