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selling a 5 bedroom and buying a 3 bedroomnew home

i bought a 5 b/3 ba home in 2001 at 300k, now its worth 240k. is is wise to sell & buy 3 bd at 260k.  I know that i will be losing money, should i hold on to it till the market goes up and i get what i paid for???
  • February 28 2011 - West Sacramento
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Answers (3)

The problem is that you would have to short sell your current home and in doing so you would not be able to get a home loan for 24 months.  You also would be able to buy a new home first then short sell your current home...the banks have caught onto that.  I would hold onto your current hom.

  • March 08 2012
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Usha2,

This is a question that you only can answer.  However, are you prepared to bring over $60K into escrow to sell your current home?  If you are planning on a short sale, then you would not be able to qualify for the new home.  If you plan on purchasing the new home before selling the other, the banks are wise to that plan as well and it would be difficult to get a loan.
I would keep the bigger house, unless there is something else going on that I am not aware of.

Good luck.
  • February 28 2011
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Profile picture for Mills Realty
Generally speaking in a declining market it makes sense to sell and buy larger, but not smaller.  The thought process is if the market drops 20% then the dollar amount of the larger house will be a larger drop than your current smaller house has dropped. 
  • February 28 2011
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