Can't buy until we sell!

elisea92

Hello Nesties,

I have found myself in a most inconvenient situation. My husband and I decided to move in December for work reasons and got our house in NC on the market in November. We can't afford to buy a house in our new area (the west side of Washington State) until our house sells. Five months later and it still hasn't sold. Meanwhile we've been making due with our situation and been living apart - me with my parents and him with some friends. Our current living arrangements are by far the most affordable. Trouble is we've been living like this since January and I am tiring of it.

I'm wondering if I'm the only one in this sort of situation, and maybe seeking advice on ways to get more "bites" on my house. I know this is a "Buying a Home" forum but I'd appreciate any sort of feedback you lovely people may have for me! 

Thank you!

Sisugal

Find a CHEAP studio apartment and live together until the SC house sells.  (Consider reducing the price on the home as well - when priced right for that market, it WILL sell --- maybe not at the price for which you hope, but it will sell)

JoanE2012

What does your realtor say?  Is your house priced appropriately comparable to other houses in your area?  Is it appealing to buyers (ie no clutter, neutral colors, etc).  Have you had foot traffic come through?

elisea92

A cheap studio apartment is $1000+, we would also need to find a pet friendly place and pay for househould goods storage. We've definitely looked into that option, but it's just as (if not more) expensive as buying a house.

Our new realtor says that our house is priced appropriately and is actually the lowest priced in our neighborhood. The photos are appealing, no clutter, neutral colors, clean. The biggest pitfall I can think of is a lack of garage. It may be a problem of a ratio of people who prefer to buy vs people who prefer to rent. I guess if we can't get it sold in the next month we could try renting - but that's expensive and scary to be landlords from so far away. 

We recently switched realtors so I'm really hoping that was a big part of it. I suppose I'm getting anxious. 

short+sassy

Bummer!  I'm sorry to hear about that.  If you all can afford it and it isn't too big of a financial hit, maybe try pricing the house at below market value.  Like 5-10% under the comps.  Draw in the thrifty home buyers looking for both a great place and a great deal.

Also, if it isn't already, make sure the home price falls just under typical price ranges.  On most real estate sites, houses are listed by either $10K or $25K increments.  For example, if it is listed at $326,000.  Drop the price a little to $324,900.

When I was looking for a house, I can't tell you how many times I would see a house listed for like $200,100 or $200,500.  So crazy!  That little $100-$500 bump up completely eliminates them from being shown in a $190K-$200K or $175K-$200K search.

The other negative about having to go a rental route is you will have to put trying to sell the house on hold, while you have tenants on a lease.  Or do a month-to-month lease with the understanding with the tenants that you are trying to sell the house.  And they will need to allow potential buyers to look at it with 24 hours notice.  But you will probably need to offer a reduced rent for that kind of situation.

Another possibility is a combo of those two.  Find a buyer who wants owner financing.  It's a bit of a win-win.  The buyer takes good care of the house because eventually it is theirs.  You get your house sold and collect interest on the loan.  Though I'm not sure how that would work with banks...since I'm assuming you need to have this debt gone in order to buy another house.  But perhaps worth a discussion with your bank.

If they green light it, just make sure to have any owner financing contract drawn up by a real estate attorney.  Owner financing is not unusual, but there are different ways to do them and specific legalities that go along with them.  And, generally speaking, most of these contracts require the buyers to get their own financing within 12-24 months, so it is not like you get stuck with these people for 30 years .