A: With the housing market cooling, buyers might want to consider selling their property before they go looking for a new one. However, since you have already found a house you love, it’s too late to take that option. You could try presenting an offer to the seller “contingent” on the sale of your house. But most sellers won’t go for such a plan when you don’t yet have a contracted buyer. Another option is to borrow the money you need short term, against the value of your current house, called a “bridge loan.” Interest rates and costs for such a loan can be high. You can also consider getting a home equity loan on your current property before you put it on the market, typically a cheaper option. If you have enough in your 401K or a “secured” asset such as bonds, you might be able to borrow against those. Talk to a lender or a financial advisor to determine the best options for you. It is important to have an attorney review the contract on the house you plan to purchase, to make sure that the deal (and your deposit) is subject to your getting the funding you need.
Gary Landau is a Coral Springs-based real estate and probate attorney. He can be reached at 954-979-6566 or Garysline@aol.com. If you need advice for your particular situation, contact your attorney.