Author Topic: Selling and Buying- Bridge loan a good idea?  (Read 940 times)

essjay43

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Selling and Buying- Bridge loan a good idea?
« on: January 30, 2020, 11:18:51 AM »
I would like to sell my home and downsize. I don't want to list my home until I've found a new place to live. I've lived in apartments between houses and it's something I'd really like to avoid. Are bridge loans a bad idea?

YttriumNitrate

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Re: Selling and Buying- Bridge loan a good idea?
« Reply #1 on: January 30, 2020, 11:57:02 AM »
I would gladly pay a few thousand in loan fees and carrying costs to avoid having to move twice.

Car Jack

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Re: Selling and Buying- Bridge loan a good idea?
« Reply #2 on: January 30, 2020, 12:08:55 PM »
You can attempt to put in a buy offer contingent on selling your house.  We did that with the house we're in now.  Closed in one day on 2 houses.  Morning, did the sale closing while my friends finished loading the moving truck.  Went home with pizza for everyone, closed the truck and drove to the new house while the lawyer did the buy closing. 

Once listed, our little 60's ranch starter house sold in 3 weeks.

I have had many friends take on a bridge loan even with offers on their houses.  They all thought they knew more about the value of their houses than the real estate agents telling them that's all they're going to get.  All were stuck with 2 mortgages for between 3 and 5 years.  All of them took a huge bath when they finally did sell.
« Last Edit: January 30, 2020, 12:10:48 PM by Car Jack »

essjay43

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Re: Selling and Buying- Bridge loan a good idea?
« Reply #3 on: January 30, 2020, 12:56:18 PM »
In my area (Boston suburbs), it's pretty competitive. Most smaller (starter) homes go for over asking price and adding contingencies usually end up getting outbid.

Car Jack

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Re: Selling and Buying- Bridge loan a good idea?
« Reply #4 on: February 03, 2020, 01:00:55 PM »
In my area (Boston suburbs), it's pretty competitive. Most smaller (starter) homes go for over asking price and adding contingencies usually end up getting outbid.

It all depends on timing.  That was the case in 1988, when we headed out of town for grad school.  By 1990, the economy was tanking.  Our house was in Ashland, MA.  (one town east of the starting point of the Boston Marathon).