Great buyers, little options

Real Estate Broker/Owner with AGORA Realty #271029

I'm working with a fabulous buyer who has a good income and wants to buy a home that is priced at around $700,000.  He's got great credit, is being relocated with a company, his home in another state is paid for...but he can't buy until he sells his home, anyway.  So after working with him for a bit, he wants to look at rentals.

I've suggested a Bridge Loan, a-lease-to-purchase and a Jumbo FHA loan (higher rate) that can be streamline refinanced in a couple of years.  I don't know if these are being considered just yet.

I ask myself, though: With such a great buyer, why does it have to be so challenging?

Comments (5)

Zilkia Olmeda-Martins
RE/MAX North - San Antonio - San Antonio, TX
GRI, Realtor, San Antonio Texas Luxury Homes

If it was easy, everyone would want to do this... :-)  I hope things work out for you and your client Alyse.

Feb 12, 2009 01:16 PM
Russ Ravary ~ Metro Detroit Realtor call (248) 310-6239
Real Estate One - Commerce, MI
Michigan homes for sale ~

It is happening around the country.  Hopefully his home sells and he gets some money out of it.

Feb 12, 2009 01:42 PM
Sun City Grand Homes Surprise AZ Real Estate Leolinda Bowers Designated Broker Leolinda Realty
Leolinda Realty - Surprise, AZ
Sun City Grand in Surprise Arizona

I too hear the same story many times every day.  I can't buy until I sell. 

Buyers are really concerned about the probability that their home will not sell thereforeI don't even suggest a bridge loan.  Renting is the key since the client can really negotiate on the rental.

Feb 12, 2009 02:08 PM
Alyse "Aly" Sands
AGORA Realty - Nashville, TN
It's Good To Be Home

This could be done with a high LTV and since his company will make payments on the new house until the old one sells it would be a great scenario...but the highest LTV possible is 85%. 

Thanks for the thoughts.



Feb 12, 2009 03:27 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

My parents had the same problem with buying a new home. They had their home paid off and were buying a home that appraised for $700,000 for only $250,000. They had a combined credit score average of over 800 and were putting $50,000 down and it was like pulling teeth to get the bank to loan to them.  If we are going to get out of this mess, the banks need to think and actually loan the money. There are only so many cash buyers in this world.


Mar 10, 2009 05:46 PM