Author Topic: While waiting for house to sell  (Read 1792 times)

gaja

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While waiting for house to sell
« on: May 17, 2015, 03:19:25 PM »
We are finally ready to put the old house on the market. DH has one more day to put in some elbow grease, and then the rest is up to the realtor. We started the renovations about a year ago, and moved in January, so I'd really like to get rid of this now.

The suspense is killing me. If everything goes well, we will make a profit of $100 000 ((estimated sale price)-(renovation costs)-(buy price)). Since our present home is a downsize, which also needs a fair share of work, we could be left with only a tiny five digital mortgage.

If the house doesn't sell within reasonable time, we will be struggling to keep up the payments. Our debt load is way higher than I'm comfortable with.

Since we bought the house, we have renovated the kitchen, installed an extra bathroom, made an extra bedroom/rentable room in the basement, painted >1 000 000 m of wood panelling, upgraded to hard wood floors on the entire first and second floor, and simplified the garden. And we found a view by chopping down two forests (getting free heat in the winters we lived there).

Still, one bathroom needs renovation, the roof is ready for replacement, and there is a big pool of water beneath the deck. I hate that pool. The previous owners were planning to build a spa. But they never finished anything. If anything will stop a sale, it is that pool.

So, feel free to join me for the drama of "sell that house"!

lukebuz

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Re: While waiting for house to sell
« Reply #1 on: September 21, 2015, 08:49:08 AM »
Well?  Did it sell?

grettman

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Re: While waiting for house to sell
« Reply #2 on: September 21, 2015, 12:30:39 PM »
So the OP moved in January.  Post was made in May.  Why isn't OP also subtracting out the amount he/she has had to pay while it sat from January to May (or longer).  Real estate taxes, interest on the loan, HOA dues, utilities and all other costs that come with having to carry two properties need to be factored into the profits.

gaja

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Re: While waiting for house to sell
« Reply #3 on: September 22, 2015, 10:20:04 AM »
Well?  Did it sell?
Yes, it did. In August, for a lower price than we hoped, but a higher prices than we feared. We should be able to pay down the left over mortgage (on the new house) within 5-7 years.

So the OP moved in January.  Post was made in May.  Why isn't OP also subtracting out the amount he/she has had to pay while it sat from January to May (or longer).  Real estate taxes, interest on the loan, HOA dues, utilities and all other costs that come with having to carry two properties need to be factored into the profits.
We did a lot of market analyzes and interviewed several different realtors before be decided how to do this sale. The market in that town is very strange. Houses either sell right away, or they sit for a long time (years). And if your house sits, it doesn't really matter if you cut the price (unless you give it away, of course). If we had put it on the market as is in January, chances are very high it wouldn't have sold this year. That is why costs of sitting on the house while renovating it wasn't included in the math; it wasn't a cost we could avoid.