Skip to main content

Closing on new home before selling current one

Interested to see what others would do.

We are purchasing a new semi-custom home for $1.75M, closing on August 22nd. Very excited but a little anxious given how weird the market and rates have been this year: We went into contract back in March (no contingency to sell our current home since we felt we had plenty of time, and lender qualified us on both mortgages).

We have our current townhome listed at $1.175M (been on the market for 45 days). We’ve had 4 open houses and 10 individual showings. A few people have loved the home, but have mentioned it’s a little out of their budget with current rates. We aren’t desperate to sell the home, as we purchased for $975K in 2021 at a 3.25% rate. The same floor plan sold for $1.3M twice in 2022, and $1.15M in February of this year with less features and finishes/worse appliances. We are in a market (Denver) where plenty of homes are just sitting. A couple other smaller homes in our neighborhood have decreased price, and still no offers.

We are thinking that we go ahead and move out at the end of the month and keep our place listed until end of September to see if the fed rate cut will stimulate more interest. If we don’t get this home under contract, money is definitely going to be a bit tight because we had no intention of floating >$2M of mortgages. If we receive no offers, we may opt to just rent out our home and find a 6-12 month lease. We can’t legally do a short term rental without considering it our primary residence… there appear to be some loopholes, but this would also mean having to furnish the place and it’s 2200 sqft…

We’ve had a traumatic experience renting out a previous condo (tenant’s boyfriend moved in and smoked weed, tenant denied her boyfriend was living there and assured us there was no smoking happening despite the neighbors smelling it, got a puppy and never told us, tenant and puppy trashed the floors, tenant stopped paying rent). We would obviously do our best to avoid nightmare tenants, but honestly just unsure what to do.

Should we…

-Decrease the asking price of our current home? If so, by how much?

-Decide to rent out? If so, when should we have the convo with our selling agent? She technically has exclusive right to list until October. Would love to not wait that long to make a decision…

-Consider something else? We could really use the extra money for projects for our new home! Had expected to sell to have that extra money…

Thanks everyone for your thoughts! - So close to that dream home 🏠

submitted by /u/eharmonie
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1eon1la/closing_on_new_home_before_selling_current_one/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

How to Avoid Property Scams in Delhi?

Here’s What You Should Know! Commercial Real Estate (Non-Residential) Buying a property in Delhi can be tricky, especially with all the stories about scams and shady deals. If you're in the market, here are some tips to keep yourself safe:Double-check the documents: Always verify ownership and approvals. Don’t just take someone’s word for it—look at the actual papers. Do your homework on prices: Compare similar properties to avoid overpaying. A little research can save you from a bad deal. Work with trustworthy people: Whether it's a seller or an agent, go for someone who's transparent about pricing and the process. If they’re dodging questions, that’s a red flag. Ask for reviews or references: If someone you’re dealing with has a good track record, they won’t hesitate to share testimonials or connect you with previous clients. I’ve noticed that some property services have started focusing on things like verified listings and clear communication, which makes the whole proc...
Post a Comment
Read more