Is it risky to buy a house with a short closing date of 30 days and try to get a bridge mortgage and be able to sell existing home in less than a month?

Category: Mortgage

 

Hi David,

Is it a risky move to consider buying a house with a short closing date of 30 days (low chance of moving closing date given demand for no-condition offers) and try to get a bridge mortgage and be able to sell existing home in less than a month?

What if my bank institution has strict limits on amount loaned for bridge mortgages and the amount required for loan is > $500K.

Thanks

 


 

Every time a person buys before selling, they are taking on a risk.

But having said that, in this market, probably 99% of move-up buyers will purchase first, then buy.

Reason being: it’s easier to sell than to buy in this market.

In your case, 30 days is a short period of time, but it all depends on what property you have.  If you have a freehold property in the central core, then I have no doubt that you can sell the home in less than 30 days if it’s priced at fair market value.  If you have a condo, the risk is higher, but it should still be doable.

Keep in mind, no property is truly “ready for market.”  I’m currently preparing two properties for sale, both of which are taking 5-6 weeks to get to market, in order to maximize the potential sale price.  Then I have another property which needs maybe 1-2 days of decluttering, but in order to get my marketing done, I need a week.

There’s a “right” way to list, and I never deviate from that plan.

So if I knew I had 30 days to sell, I’d also know that it’s really, at most, 23-24 days, since there are things you need to do in advance of the listing.

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