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[quote=Anonymous][quote=Anonymous]We're thinking about 'upgrading' within the same neighborhood.  This is our first home so we've never sold before; buying while renting (and with no kids is so much easier!).  we live in a decent house in a desirable neighborhood, so I think it should sell pretty quickly if not overpriced.  Unless a realtor tells me otherwise, we'd like to buy first so 1) we have time to make any repairs to the new house before moving and 2) we're not showing the house while living in it.  I know this is insanely complicated and we'll need bridge financing, but I think our financial situation is such that we should be able to get it (again, assuming our agent agrees that our current house will sell quickly).  Here are a few questions - would appreciate any advice on how to do this!

1. we need to get an idea of how much we can sell the house for before we figure out our price range for a new one - will an agent give us a ballpark figure before we sign a listing contract?  (if it's not worth what we think we might change our minds, since we know what the houses we like are going for and how much we need to be able to get into one).

2.  how expensive is bridge financing?  I think what we do is set up our new mortgage, then basically pull all the equity out of the old house with a bridge loan to make the down payment, and pay higher fees on that loan until we sell the house and close it out?  Any tips?

3.  in addition to the down payment and closing costs, what kind of cash should we expect to have on hand for 1) moving from a well-furnished 3 BR house, with some packing help for fragile items, 2) staging and touch-ups to list the old house, and anything else I'm missing that adds up?

4.  Are all these questions that a realtor would answer if I was still trying to decide whether to move?

Thanks![/quote]

I was in your exact situation last March. This is what I discovered:

1) Most Realtors will tell you that in this market you should sell the house you own first and then look for one to buy. We refused to do this because we didn't want to take the chance of being homeless if we couldn't find what we wanted. Still, there is some validity to this. First, if you are looking in competitive markets like Arlington, cash is king and having a home sale contingency is a kiss of death. Granted, there are many homes on the market that aren't moving and you may convince those buyers to accept a home sale contingency, but that shifts a lot of risk to the sellers of the home you want to buy, so many will be reluctant. We took a chance in finding an overlooked house and convincing them to accept our home-sale contingency, but I think we are the exception and not the rule.

2) You should invite three real estate agents to present marketing plans for selling your home. At least one should be someone you KNOW is familiar/active in your neighborhood. Listen to the presentations, consider the comps, study the marketing plan. Ask yourself whether one of these people can also serve as your buyer agent and will they cut you a deal on your selling commission if they do. Mostly, however, you're looking for a track record of selling homes quickly at fair prices, and with a good Internet presence.

3) Bridge financing? Fuggetaboutit. Given the housing market, I don't think anyone will give you a bridge loan on the promise you will sell the house in which you currently live.

4) In addition to down payment and closing costs, you will need to spend a fair amount of money getting the home you are selling ready for market. We dropped about $7,000 on new paint, a new slate walk to improve curb appeal, and to fix a variety of other things we suspected would come up on the home inspection (which will likely cost you more than you expect). Just moving from a 4 br house in Alexandria to a 5 BR house in Arlington cost me more than $3,000. We had been in our Alex house for 8 years and had two kids. It was shocking how much CRAP we had, even after we purged several curbfuls of crap.

So, if you were following my strategy, you'd get a sense of you house's value from the presentations. Subtract roughtly 7% of the value for commissions, repairs, staging, etc. Subtract your mortgage and you get a net figure. Make sure the price is realistic b/c you can count on getting probably $25,000 or more less on an actual offer (and your buyers will likely want you to pay their closing costs and the like)

With that figure in mind you target a house in your desired neighborhood that has been on the market a while and may be open to a bid from a buyer with a home-selling contingency. Subtract about 10% from the asking price and make an offer with those two contingencies. Also ask for seller-paid closing costs to help conserve cash (the costs, including prepaids, on my $900,000 home were about $16,000).

Then you have several sleepless nights while you wait for an acceptance or a counter or whatever. Then you find a buyer for your own house. Ideally you get your own ratified contract before you're done negotiating the home inspection contingency on the new house (you said you're expecting repairs). This makes you a dangerous buyer and gives you leverage in the home inspection negotiation phase (of course, you will also have to negotiate the same issues with your own buyers).

If the house you want to buy really needs more work than can be done by the sellers or you really want to renovate, you negotiate a lease-back from the buyers of your own house or put your crap in storage for a while and live in a hotel or short-term rental.

No matter what, you're going to be hemmoraghing cash for a while. Moving is expensive! Good luck! Where are you now and where do you want to be?

Then you sell your own house as quickly and aggressively as possible.[/quote]

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