Selling / Buying a House. Any Tips, Caveats?

[tom slick]

The wife and I have decided it's time for a different house. We both commute to the same town about 40 miles (55 mins) over a mountain range and through the woods so were going to move closer to our work.

We bought our current house in 2002, the market has changed a bit since then and so has our house. We're looking at houses in the same price range of what our current house will sell for. We have enough equity that we'll have 20% down.

This is the first time we've selling at the same time we want to buy. Any advice on making that transaction smoother? Specifically what to do if our house sells before we buy the other house?

Any other advise? Things to look out for? tips for selling? Staging the house?

 

[Yagenta13]

My wife and I are going through the same process...prepare for stress (not to scare you or anything). If your house sells before you can buy, your going to have to do two moves. Put most of your stuff in storage and find temporary housing. Some realtors know good resources for this. Pray you don't have to! Even so, selling yours is better than finding one and not being able to sell- pick your poison type of deal.

Also, be VERY careful with who you choose to go to for your new mortgage. Mortgage brokers can be horrible and there's always an option to do it yourself. Trust no one and always ask questions and shop around. Anyone who tells you there are no options or gets annoyed with your questions should be fired on the spot. Also, check your credit far in advance and contest any negative reports. Your credit score will dictate your interest rate FAR more than your down payment amount. There's a reason the housing market place was virtually taken over by the government. Watch you butt cause they'll try to take it!

Showing is basically just clearing things out, cleaning up, refreshing everything, and making your home very open, neutral, and inviting. It's not yours anymore- you're selling it so make it inviting to the buyer and not your own personal style. Open windows, fresh paint, good smells...when you start seeing other homes you'll quickly see ones that are WOW and ones that make you just want to leave. This will help with your own showings.

I'm sure I missed a bunch but I hope that helps. It can be a real roller coaster ride so just be prepared to roll with the punches and believe it will all work out. Good Luck! We'll be closing on our house and the new house on the same day and I'm stressed out to the max until the deal is done!

 

[volvos_rock]

Try to keep in mind that it is a business deal, nothing more, nothing less. Don't get emotionally attatched to anything....Until you own it. I've seen people get hung up on 1 or 2 thousand dollars either way and blow a good deal because of it, don't do it, it wont make a difference in the grand scheme of things. Open and airy and nutrual for your home during showings (don't forget the storage areas as well), store family photos, etc. As silly as it sounds bake cookies and have bottled water out. If you have done considerable work to your home in the time you have owned it, Brag about it, flyers in a simple word document put out next to the cookies...as those who look at your home will have something good to remember! Good Luck

 

[Pablo]

1) Sell your house first.

2) Absolutely stage it properly. Every little blemish must be gone. Every bit of clutter out. Find someone who knows what they are talking about.

 

[The_Jeff]

Consider those rental PODs for storage/moving. Know anyone you can couch surf with for a month?

I agree with selling your house first, it will give you a "world is your oyster" feeling. But get prequalified for your next mortgage!!!

I refi'd in 4/2009 and man, o man, did they want an invasive paper trail. They had thirty days to answer and they finally got back to us on day 28 or so.

 

[tom slick]

I refi'd in 2006, they couldn't throw money at me fast enough and couldn't believe I only wanted finance what I owed and not 125% of the value. They required minimal paperwork then. Of course that mega company is now out of business.

We started the prequal today and they want proof I'm employed 40+ hrs (not just pay stubs), all investments, contacts at work... All the stuff a prudent loan officer should look at.

We've decided to hire a maid and send the dog to my mom's until the house sells. I need to do some painting and clean up the landscaping a little.

I've repaired and modernized just about everything you can on a 50 year old house so were asking at the top of the range of the comps. Mechanically the house is less than 8 years old. I'm making a list of these items along with the dates they were completed. The only maintenance issue is the hardwood floors need to be refinished.

 

[hattaresguy]

Well I do deal in real estate for a living, what do you want to know?

First you need to get an accurate valuation of your house, and quite frankly most homeowners, even savvy ones are very bad at this. Its human nature, its the whole its mine so its better than everyone elses mentality.

You can't go by what's listed because people can ask anything, you need to compare properties that closed recently, you can go about 3 months anything older is useless. So either pay for an appraisal about $400, or have a good RE agent who isn't going to [censored] you give you a price.

My 2 cents on pricing and I move a lot of my houses this way is to price them slightly below market. Look at it this way, your best buyers are already going to be in the market looking. When your house pops up since its a new listing they are going to run right over and take a look at it. These are your best buyers, they have been in the market for awhile, know whats out there, what stuff is worth, and have probably already lost a house they wanted. So you can't fish, they know what things are worth even if the sellers may take 6 months of market education to learn, so your first offer is usually the best. I build new houses and on my last 2 the buyers got into a bidding war, and they sold over asking. Not bad for a down market! But I don't fish, I price $5k-$10k under market and blow them out.

Once you determine the value of your home, and if you can sell it for that and be satisfied next you need to prepare it. This is where a good agent earns their money, listen to them. Maybe even consult an interior designer, staged pretty homes sell, faster and for more money.

Oh loans are a PITA to get too these days, talk to a bank.

 

[Steve S]

If the house is priced properly for the market it will sell. Going through a midlife crisis " I sold all my rentals by 2006 " I thought about building a GT40 car or another fast boat or a Harley so I could hang out with the other old people with Harleys . My wife worked real estate and looks at the MLS on a regular basis and one morning said look at these two houses. I was a regular sale priced at REO prices and one was a REO which was a real deal and my wife is good about judging value . So I bought both of them . One is already rented and one is about halfway ready to rent.

 

[Schmoe]

PLUS 1000000 on selling first. Wife and I went through that in '98. Nothing will stress you out more, or test your marriage, than two mortgage payments.

 

[tom slick]

We're planning on selling first but we could afford both mortgages. I could rent out our current house but the rent rate wouldn't cover the mortgage. Our agent is also recommending selling before buying.

We looked at a few houses that fit our "ideal" (on paper) criteria, only would would have been worth considering. At least now we know there is at least one house out there that we'd consider.

Now I've got to do some painting, cleaning, decluddering, and landscape maintenance. I'm going to try to list it in two weeks. I'm also doing my homework to determine my house's current value.

Any reason not to get a VA loan? Seems like a good deal as long as the seller puts up with the VA rules.