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Originally Posted by Eff-1
Bridge financing comes with ridiculously high fees. I'd avoid at all costs if you can.
We had a similar situation last year. Bought our new place before selling our condo. Coincidentially, our condo hit the market in May 2024 with possession of our new house in September, giving us the summer to find a buyer.
My take is this: Figure out what the absolute minimum price you need to sell your condo to make the new purchase agreable. Once you know your bottom line number, take the first offer you get that is above that amount.
You'll always ask yourself later if you could have got more, but you'll never regret taking an offer that is above your minimum. The sooner you get peace of mind that your condo is sold, and you can focus on the excitement of moving into your new place, the better.
The first offer we received was a total lowball and so we didn't entertain it, but the second offer we received was in our acceptable range so we took it. Could we have gotten more if we waited? Maybe, but we don't have any regrets because we avoided the risk of waiting it out.
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Quote:
Originally Posted by westopher
Good advice. Greed and the wouldofs couldofs can really end up putting you in a shitty spot and is the mentality where the "investment" part of homeownership starts to outweigh the fact you need to live somewhere, and it's going to be a hell of a lot more beneficial to your quality of life to enjoy it than it is to squeeze and extra 20-30 or even 100k would. Don't get me wrong, you need to be able to afford it, and afford to live, but you need to have reasonable expectations and not be motivated by the investment side of it. If it's your home, you aren't an investor. Lifestyle needs to be put above profits.
We negotiated to asking price from the first offer, and also negotiated payment date being 2 days before possession date, so we had EVERYTHING in order to move over 2 days and already have the money in our account on the day we needed to pay for the new place. That was where our realtor was invaluable. No dicking around with storage, or bringing mortgage or anything, which was well worth the extra 10k or whatever we maybe could have squeezed.
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Yep that's exactly what our plan is. We can afford the new place even if we fire sale our current home for significantly under market value. Got an open house this weekend so fingers crossed we get an offer we can pounce on!
We ran the numbers with our mortgage broker thanks to the suggestion from EvoFire and in the worst case scenario where selling doesn't make sense, we would be able to afford both places if we rent the first place out.