How to sell old, pay for new and move all same day? (furniture, expensive)

[bryson662001]

I am selling my apartment and buying a new one that is on the other side of town. The apartment I buy will be much less expensive then the one I am selling so I won’t have a mortgage. Here’s my problem/question. I can’t afford to buy the new place until I go to settlement on the old place which is when I will hand over the keys and move out. I can’t make settlement on the new place and move in until I can pay for it in full. Am I supposed to put my furniture in storage and live in a hotel for a week until the check from my buyer clears? How does that work? I asked my realtor about a possible bridge loan to pay for the new unit before settlement on the old one but she didn’t think that was an option. How do people do this when there is no mortgage involved?

[reed303]

Well, that is what bridge loans are for. Maybe you need to call it a "Home Equity" loan. Here is what one major bank says about its HE loans

"Home Equity Financing for Buying Additional Property

Did you know you may use the available equity in your current home toward a down payment, or for a cash purchase of a second home or investment property? A home equity line of credit from [redacted] makes it possible."

Call your banker directly. Sounds like your agent is being less than helpful.

[SiiS]

This should be a no brainer for any agent worth his/her commission. You simply use the same closing attorney or escrow company to close both transactions. The buyer will need to bring cash to closing, or a note from the lender if being financed. Therefore, there is no need to wait for a check to clear. In most cases, your agent should have it in your contract that you have until close of business or some other designated time/date to get out of the old apartment. It is also possible to lease back the old apartment for a few days if you need a bridge of time until everything is cleared for the new place. The attorney/escrow agent should also enter a clause indicating that the closing for the new place is contingent upon closing the old place. These type transactions happen every day and again, any agent worth getting paid should be able to direct you.

Also, it's probably too late now, but you should know that your agent's commission is negotiable and you should not feel obligated or pressured to work with an agent who is not working for you. Finally, make sure the agent in each transaction is actually your agent and not a actually representing the other party. There are disclosures regarding this that are often misunderstood or overlooked as part of the transaction and one party may not be represented to the utmost.

Good luck!