CARL KRATZ

Ben, What you can afford doesn't factor into the value of a property. The truth of the matter is that buyers and sellers are playing chicken, but basis for an offer should be grounded in past comparable sales. Similar homes within 10% in size, preferably in the same neighborhood or at least a close and similar neighborhood. Bedrooms aren't as important as bathrooms and kitchens, that square footage is more valuable. Upgrades and condition should be taken into account. If you don't have a lot of money to play with you may be able to offer something that would be valuable to the seller, like a quicker closing. If the home as cosmetic issues that you are willing and able to tackle, that could be something that could help you get a win. I know it is hard, be patient and you will get the right home.

Interestingly in South Carolina, my understanding is that insurance companies don't provide the same coverage after 25 years. I would talk to your insurance agent and see what he or she says. I was going to put a metal roof on a rental property I own but ended up going with an architectural shingle. I decided in another 25 years I'm not going to care as much. Looking at your numbers, you will have to save a lot on premiums to make up the expense. I can't comment on tile. I'm surprised it isn't more expensive.

From my perspective, a buyer should never go with an adjustable loan because the fixed rate is out of their reach. If your adjustable rate goes up, you could be in a situation where you cannot make the payments. If you can afford the payments either way, a smart move might be to pay extra on your loan, so if the rate goes up, you have enough equity in the home to refinance. The keys are the metrics used to adjust the rate, the timeframe, and the changes after the initial period. Understanding the product will help you make an informed decision. Then you just need to deal with the uncertainty of life as it related to the mortgage. I hope this helps. Carl Kratz Broker & Realtor C21 Integra Realty Serving Hilton Head Island, Bluffton, Beaufort, Hardeeville, Ridgeland, SC

KerryAnne, Selling your house first is typically the safest way to go because you know how much money you have to work with buying your new home. I think it is important to understand the likelihood of your home selling quickly vs. buying quickly. If you are staying in the same area, I would expect the metrics to be similar. Essentially, you could be making a lateral move. If you are buying up or down, that sway your benefit or risk. Time out of the market can also cost you money depending on your market conditions. A lease-back could give you some breathing room. I've owned extra homes and didn't like the extra pressure. Being realistic about what you can buy and sell for is one of the most important keys. Good Luck! Carl Kratz Broker & Realtor C21 Integra Realty Serving Hilton Head Island, Bluffton, Beaufort, Hardeeville, & Ridgeland, SC