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Help!! To buy or not to buy!??

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    Help!! To buy or not to buy!??

    I need all your expert advice on this one... this is a long post, sorry...:

    1. We have our house on the market- about 1 showing every other week or so but no bites so far... it was built in 2006 and we have it listed for $349K. Our main intent on selling the house was to find a much better location for our small children. We live in the mountains and wanted to find a flat yard within the city limits (and for several other reasons).

    2. In the meantime, we've been looking for our next home. We have looked at 50+ houses in the last year or so. Last Fall, I came across a listing that DH and I think is the "one" but we are hesitant with the price. It is a 1976 brick ranch on the most beautiful piece of property ever. The backyard backs up to a beautiful river and on the other side of the river is a golf course. The house is in the middle of town but secluded enough to where you don't even realize that town is literally just one mile away. The location is what drew us in immediately. It would be perfect for our family... as they say, location, location, location!

    3. The house is For Sale By Owner... the current owner's 90 year old deceased sister, who built the house and was the only one to ever live in it, left the house to her in her estate and it's taken her about a year now to clean out the house and put it up for sale. The house needs a lot of work inside (I mean like there is carpet in the bathrooms... ick) but it's nothing that DH and I are scared of. However, we are scared of the price... they listed it for $445K back in Sept. I drive by the house nearly every day just to look at it... well, I called the owner today to check on the status of the house. After talking with her and expressing our sincere interest in the house, I asked if she would be willing to go down below $400K. She said she would take $390K.

    4. Our concern is that our "dream" home, no matter how much fixin' up it requires will be lost to us if we don't act now, even though we haven't sold our own home yet. We've thought it through and through and know that this is where we want to live with our children for the next 30 years. You'd just have to be familiar with our city to know what I mean when I say that this location is unbeatable.

    5. In all honesty, if this house was anywhere else, it would only be worth $250K market value at best (the current tax value on it is $268K) but it's the location of the house that is bringing in the premium in price. Will we offend the owner if we ask her to go down to $375K (or even lower)? If she'll take that price, should we go ahead and buy it now before our house sells? The bank tells us that we could afford carrying both mortgages on our incomes... we both have 100% safety with our jobs and our current incomes with no worries of layoffs or anything.

    6. The owner indicated that they had planned on listing this property with a realtor next week. The lady and her husband are both elderly with health problems and have found that they could not "show" the house as much as they liked as they have been in and out of the hospital (which I know she is telling the truth). I would hate for this house to be listed in the MLS which means that everyone will know it's available and I'm sure it'll be snatched up quickly. So, we need to decide on what to do this week.

    Please help me see which way I should go with this situation. I don't want to make a huge mistake by (1) carrying two mortgages and suffering for it or by (2) losing the perfect house due to just a plain lack of courage.

    How long can you carry both homes if they don't sell? How much are you putting down and if you are going to offer $375k, what is it listed for?
    LivingAlmostLarge Blog


      How large is the house, square foot wise??


        We could carry both mortgages for a long while if we had to by rerouting some of the money we put into savings each month.

        Our intention was to use the money we would've made from the sale of the current house as our down payment on the next house... we can get 100% financing for 5.25% for 30years on this second house... once the first house sells, we'd just make a huge principal payment on the loan to bring it back to balance...

        The house is around 2600 sq ft.


          I've BDTD and I would NEVER do it again. & it worked out okay for us. But I would still never do it again. (I'm not sure if it's courage as much as stupidity - hehe). We could have carried 2 mortgages indefinitely as well (each was 30% of one income). But looking back I am glad we weren't stuck with that for many years.

          There will always be other homes.

          You'd probably be better off getting aggressive on the sale of your home, settling for less, and making a contingency offer. Take it on the chin now if this is the house you must have. You open yourself to a world of hurt if properties take a hit while owning 2 homes. No matter what you think may happen, anything can happen.

          I mean, if you have to have this house, keep an eye on it and make an offer they can't refuse AFTER you sell your current home.

          My personal opinion is there will always be something better out there.

          I mean, are you prepared to own 2 homes for 10 years? Honestly, that's the question you have to ask. Can you afford it if you lose a job? If one of you gets sick? It's just a lot of risk, unnecessary if you ask me. This is the thinking is precisely what got everyone into this mess in the first place.

          I don't know your situation 100%. But it is certainly my gut reaction.


            Don't do it...Murphy's law will be the law of your life...but what do I know I have never had two mortgages at the same time


              If the house is meant to be it will be there when your house sells. You don't want to have to pay two mortgages these days


                I've told my story here before; I did it, and hugely regret it. But then again, what happened to us isn't the norm. Basically we had freak flooding that resulted in the first house being completely ruined and no flood insurance, while on the market and after we bought the second house. It was declared an emergency by the president, but because it was our secondary home, we qualified for absolutely NOTHING from FEMA or any other relief organisations.

                Sell your house first. If the other house isn't still around, there will be another house for you.


                  Never,Never,Never buy one before you sell the other. There is no such thing as only one dream home. I would not even look until you have a buyer, and then I would only do a contingency contract.

                  Beware of house fever.


                    Have you been watching the news? It's a buyers market. Houses that need reno are not selling. Especially at premium prices.

                    The situation is not improving anytime soon. Let them get a realtor and they might get a reality check.

                    If you still want to make a quick move, then you are better off steeply discounting your own house to move it. The money you'd be paying towards a second mortgage has an interest and an opportunity cost you should consider.


                      I agree with everyone else. If someone else buys this house, there will be others. You may have 100% safety with your jobs but I still wouldn't want two mortgages in this economy and who knows how long it will take your house to sell? Also you wrote:
                      The bank tells us that we could afford carrying both mortgages on our incomes
                      The bank tells you? What does your budget tell you? What does your level of comfort tell you? What does your ability to save for emergencies tell you? Do an honest and objective appraisal of the situation before making a decision based on emotion.


                        Thanks, everyone, for bringing logic back into my reality. I will seriously consider all your comments and will more than likely take the smart road: waiting until my house sells before committing to another. I do appreciate everyone's input!