# Sell and Buy Dilemma



## moonspinner (Jul 2, 2002)

I will be putting up my place for sale shortly (by owner). I found another property I like (also selling by owner and they are not considering owner financing) but the problem is I need the income from the sale to pay for the new place. I don't want to take out a loan, first off because I don't know if I could. My credit rating is good but income low. Plus if this place sells quickly I'd be stuck paying the loan and interest, other fees. 
We're not talking big properties by any means. I have a mobile w/two + acres that I would expect to get in the mid-20s for, and the place I am looking at is even more modest, a couple acres w/a trailer and just electric. They are asking $18,500.
If I wait til my property sells, the other place will likely be gone.
Any suggestions how to make this happen? 
Also, any thoughts as to amount to offer on the place I'm looking at? They have been considering offers for several months now (one sale fell through) and say they would like a "decent offer." They are not in a hurry to move it, so I'm thinking no lowball stuff.
Thanks for any insights.


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## FarmerKat (Jul 3, 2014)

I would ask if they would consider accepting an offer with the closing date contingent upon you selling your place. I think you would have to make an attractive offer - e.g. offer their asking price and a nice deposit. Worst case scenario is that they say "no".


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## andrew3d (Jun 23, 2002)

What is the Real Estate market like in your area? Do properties generally sell fast, or take many months? A robust Real Estate market makes it easier to do what you are trying to do. Is there any chance to do a trade with the other property owners? At least, talk with them and ask what can we work out between us.


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## Fishindude (May 19, 2015)

+1 for working with a small local bank.
I think you will have a tough time getting financing without a down payment, unless your existing place is paid for and has significant value.

When we bought our farm, the bank delayed the first payment six months which allowed time to sell the other house and do a little remodeling on the farm house before moving in.


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## Belfrybat (Feb 21, 2003)

Since they are not in a hurry to move, submit a contract contingent on your selling your place. The fact you are paying cash is an incentive for them to take a deal like that. If they are asking $18,500., consider offering $17,500.00. If they don't like it they'll come back with a counter offer.


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## moonspinner (Jul 2, 2002)

I think the best way to go is to explain my situation and get a feel for what they may consider. I doubt any kind of land contract will appeal to them since this is a recreational place for them and they've already had several offers including a failed purchase. I would think though, the longer their property goes without selling, especially over summer, it would be in my favor.
I have not spoken with my bank as I really didn't want to go that route. But my current place is paid for and relatively speaking, we're not talking a big $ amount here.


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## FarmerKat (Jul 3, 2014)

moonspinner said:


> I think the best way to go is to explain my situation and get a feel for what they may consider. I doubt any kind of land contract will appeal to them since this is a recreational place for them and they've already had several offers including a failed purchase. I would think though, the longer their property goes without selling, especially over summer, it would be in my favor.
> I have not spoken with my bank as I really didn't want to go that route. But my current place is paid for and relatively speaking, we're not talking a big $ amount here.


Good luck. Please come back and tell us how it went


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## jwal10 (Jun 5, 2010)

Is this for full time or a recreational property? Can you set it up with the owners to carry for a short time, a little down and make low payments until yours sells and then pay it off when yours does sell? Are you willing to sell yours for what it brings on the open market or you holding out for your price, since you are not really sure what yours is worth? Are you sure this is a better property for YOU? Make sure. Do you have any money saved at all? Go through everything with a fine tooth comb, IF it is a step up, make it work. IF this is where you plan to live and the place you really want,(need) take some risk, if recreational, be very careful not to extend to much until you know just what you have is worth and properties are selling....James


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## Tobster (Feb 24, 2009)

You narrow the options available once financing is off the table. If you have equity in your current home, then you have some leverage. Finance charges from interest and closing cost adds a premium to the purchase. If I really liked the new place and felt it is what I had been looking for, then I would pony up the extra money, pay the premium and get the place . . . but I understand it is a personal decision. If you believe it is not worth the extra money to finance, then perhaps you will be better served to keep looking and during the search your place sells.

I think forum members have given you some great advice about the contingency offer, as it was stated, 'it doesn't hurt to ask'. Good luck.


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## 1948CaseVAI (May 12, 2014)

Contingency contracts are quite common when buying/selling homes, and they do work much of the time. The catch is, of course, that if you have a contingency contract on the new place and someone comes along with an offer that is NOT a contingency, you get bumped. It is a risk just as all of life is.


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## Declan (Jan 18, 2015)

See if they will rent to you until your other property is sold or do bridge financing until then--like a 1 year balloon installment land contract.


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## moonspinner (Jul 2, 2002)

The owners had their ad up at Craigslist. Just as I was about to discuss options, I see now they are listed on an agency website. The price increased $1400. Obviously they were not getting the kind of offers they wanted at CL, so likely they won't come down much. I really like the place but not 100% sure, so will probably back off at this point.


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