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"...we'll buy yours!" (Real Estate question)

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Has anyone ever done an "Upgrade to this home and we'll buy yours" deal?


I'm not entirely sure we're in a position to do this, but a listing on Realtor.com piqued my interest. It's not quite my dream home in appearance, but it has the majority of the "things" on my wish list, like 5 bedrooms (we have 3), 3 baths (we have 2), a full, finished basement perfect for playroom, hs room, AND storage (we have none of those), big kitchen (ours is miniscule), a bit more land, and even a heated pool (which is on my dream list). Plus, it's in a much less restrictive community, and I could probably have chickens!


The list price is only $5,000 more than our current house was listed as 5 years ago, but we're probably slightly upside down on our mortgage right now by $5-10,000 - hopefully not more. I can't help but wonder what they'd offer us. Money is certainly the main consideration, but "off-loading" is a major second runner up!


Would you put a call in, or just assume it'd be a rotten deal?

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I've never heard of this, but I imagine it is like trading your car in to the dealer instead of selling it yourself. You'll get significantly less than market value for your house. If you're not too far upside down, maybe you can cover the difference. On the upside, you also don't have to go through the hassle of listing and keeping the house clean for showings, etc.


For me, if it was an upgrade I knew we wanted to make, it would come down to affordability. How much would they have to pay for my house to make it worth it to me? Is the upgrade house overpriced for the market? Can the upgrade house price be negotiated? Will they be inflexible if there are issues that come up during inspection? (Ie. we're already buying your house, so the new house comes as is.) How much would you have to take out in mortgage, and at what interest rate? How would you cover the shortfall on your old house?

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Make a call, go see it, do research at town hall on the property and surrounding properties, get a thorough house inspection, and if it's still a good deal and they want your house - go for it. :)


It can't hurt to call and see it - they can't force you to buy it. I'm just not sure that they'd want a smaller house for about the same amount of money. Most downsize to save money. Utilities will probably be less, but with the sale price almost the same there isn't much for them to gain. Is a highway, nuclear power plant, landfill, chemical plant, etc. coming to the area? :auto:

Research the property taxes too. They may have recently had a tax hike, or one is coming next year.

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I think it is a common tactic. They will buy your home usually for about 90% of what they determine market value to be. You're losing 10% for the convenience and lack of stress. I would try to get an independent appraiser if I did that. Also, remember that it is 90% of market value- not your mortgage, pay off, or the appraisal you had done when you lost the house.

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Thanks for all the points to consider, everyone!


Is a highway' date=' nuclear power plant, landfill, chemical plant, etc. coming to the area? :auto:



The other house is what we consider to be "right down the street" around here, so most of the big concerns like power plants and what not are the same. (There's talk of "fracking" coming in a few years :glare:)


It's in a much more developed area, which I'm sure has it's pros and cons. It might be kind of nice to have the supermarket and library nearby!


I'm going to talk to dh and probably put in a call. Even if it isn't the right house, I think I want to learn more.

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