topic Re: Housing Market - Anyone Contemplating? in Home

Housing Market - Anyone Contemplating?

ScenicMaine — Mon, 13 May 2019 00:51:50 GMT

After much discussing, we've decided to list our home for sale. Tired of the tight city living & we dreamed of a country type atmosphere (within our $$ range, which isn't high.) Our home has been paid off for years so we don't want to have another mortgage. Nor, if possible, to not touch the 401K. DH is only working part-time & I plan on the same within 1-2 yrs.

I admit, it's a bit of an over-reach for us. But I took my Mom with me yesterday to check out a home in a town next to Spfld., MA. It's about $30,000 over what we want to pay - BUT, shock of all shocks, DH said if I want to take the $$ from our 401K to use, he's fine with it. HUH? If you only knew this week the back/forth with him being undecisive, it just took me by surprise.

Our agent I met with yesterday seems to think our (what I call size 7) home would sell quickly. The comps she showed for the same size home also showed the 3 homes that sold all got over their list prices. I felt encouraged after that. Agent, recognizing my feelings for staying within budget as close as possible, even volunteered to decrease her commission from 6% to 5%. Without me even mentioning it, I was very grateful for her doing that.

Anyways, with the market seeming to be on the upswing, it seemed wise at this time to get in on it. Is anyone else contemplating the pros/cons of the current housing market & possibly deciding in favor of joining the flow?

Hoping for our dream to come true. Keeping fingers crossed.

Re: Housing Market - Anyone Contemplating?

Topaz Gem — Mon, 13 May 2019 01:02:37 GMT

I’m looking to go into a townhouse from a cramped apartment and the market is pretty good in my area. Condo sales are a bit slower than home sales in my area which I’m happy about, as the slower market may work to my benefit price wise.

Springtime is a great time for new beginnings, so best of luck if you decide to make a move. I believe you will love country living. 🙂

P.S. I just reread your post and I was born and raised in the area that you’re living in. In fact, I worked in Holyoke and Springfield for many years. I’m now living 2 hours away in another New England state but go back to western MA frequently.

Re: Housing Market - Anyone Contemplating?

tansy — Mon, 13 May 2019 00:57:50 GMT

Are you old enough to take money from the 401k without a penalty?

Personally, I would not take money from one to buy a home.

Re: Housing Market - Anyone Contemplating?

phoenixbrd — Mon, 13 May 2019 01:10:44 GMT

@ScenicMaine I understand your reasons. Houses have continually gone up. If this is your forever dream house that offers you peace, you are convinced that you are getting an excellent price, and you are not placed in a compromising financial position - I'd buy.

Re: Housing Market - Anyone Contemplating?

ScenicMaine — Mon, 13 May 2019 01:16:43 GMT

Hello @Topaz Gem Fellow New Englander ..

Thank you.

I gave the realtor several areas for the search & I saw a few townhomes for sale in our $$ range. The problem is our large dog who loves barking frequently. I think such close living would probably anger most close neighbors.

Also, part of our decision to list is our current home is very close to neighbors on both sides. When I moved here in my early 30s, our street/neighborhood was on the quieter side & more respectable. Not as much now.

I wish you luck on your search. Hope you find what you want. The agent did say this time year is best because families who buy can settle their kids into school before the new school year begins.

Re: Housing Market - Anyone Contemplating?

ScenicMaine — Mon, 13 May 2019 01:22:22 GMT

Hi @tansy

Yes we're both within age so no penalty.

If necessary, I plan to use 401K ONLY within the range I mentioned but hopefully lower. I did mention we want to stay in budget.

Re: Housing Market - Anyone Contemplating?

ScenicMaine — Mon, 13 May 2019 01:29:55 GMT

Thank you @phoenixbrd

Yes it would be our dream home, in budget. Our plan is to not move again. Maybe not near certain areas we would prefer (don't want to be so far from my elderly Mom when needed to pitch in.) But still a few horse farms nearby & not as crowded of a town.

I review the housing market almost daily & this particular home has decreased in price $15K. I've been keeping my eye out in several areas for pricing, property taxes - as much info as I can gather to help in our decision making. If we aren't fortunate for things to work in our favor, then we just will stay here.

Re: Housing Market - Anyone Contemplating?

Snowpuppy — Mon, 13 May 2019 01:32:20 GMT

@ScenicMaine For me, it's priorities first, money second. It's a good time to sell.

I understand staying away from condo's with big dogs. I lived in two. Also in a condo, your monthly fees can move up in a hurry and personally I want fixed costs as much as possible in retirement.

I recently bought a wooded parcel to build on. I already live rural so acreage isn't intimidating.

When your heart says this is it then use your 401k. DH may be more ready to move on to more peace than you know!

Re: Housing Market - Anyone Contemplating?

phoenixbrd — Mon, 13 May 2019 01:35:05 GMT

@ScenicMaine Sounds as if you have thought things through. Have you checked to see at what price the owners purchased and how rapidly they are coming down in price? There might be a bit more negotiating room? Are the taxes comparable to your current home? Just a couple of considerations.

If this house doesn't work for you, there will be another on the market that will. I truly can relate to wanting some space around you, especially in retirement/part-time years. You have earned some relaxation.

I know this will work out for you and wishing you the best. Keep us posted!

Re: Housing Market - Anyone Contemplating?

sissel — Mon, 13 May 2019 01:36:50 GMT

Phoenix Az is building ton of apts & single family homes. The single family home 3 beds, 2 1/2 bath brand new starting $500,000not much yard, have community parks & pool. HOA's expensive, I love walking threw the models no dinning rooms, it's large kitchen with a huge island that may seat 6-8 people very open floor plan. Average apt rent is about $1200 a month for a 1 bedroom DD brought a townhouse 2yrs ago, that is going up so fast in value because not much townhouses to choose from. DH & I retired live in a 4 bed 2 1/2 bath ranch style & paid for so we are staying. I have seen so many 55 & older, in the middle of nowhere, where is shopping, hospitals etc...not for me yet. Also we have nice neighbors.

Re: Housing Market - Anyone Contemplating?

ScenicMaine — Mon, 13 May 2019 01:43:28 GMT

Thank you @Snowpuppy for your input.

If we're fortunate to get this particular home, it will bring peace of mind for sure. With the neighborhood changing, I see the "writing on the wall" & feel as though we're being forced out. Maybe that's exaggeration, but I know what I want for our living situation. DH was in agreement, then this week, he was in "moody" mode! I took him to see the house today (he saw it on line) so he likes the area.

I envy you living in a rural area. You must have peaceful, pleasant days always. Good for you. Good luck building your dream home.

Re: Housing Market - Anyone Contemplating?

ScenicMaine — Mon, 13 May 2019 01:49:15 GMT

@phoenixbrd

Thank you again for your input.

Yes each home I think has possibility, I check all the description along with the property taxes. Also, the purchase history, date when listed & prices changes. I mentioned in another post this particular home has decreased $15K. Taxes are I think about $300/yr. more than ours.

Thank you for your encouraging words & best wishes. I will update as time goes by.

Re: Housing Market - Anyone Contemplating?

lovesrecess — Mon, 13 May 2019 01:59:03 GMT

We are trying to find a one story home because we can’t do stairs anymore...two houses on our block sold the same day they were listed....both over the listing price. I hope you are able to find exactly what you want within your budget. We have not put ours on the market yet because we have no place to go yet...and I don’t want to move twice.
Prices have been so high in our area that slowly, prices are coming down a little.....because they are really through the roof...we can’t even afford to buy our own house at these prices! I would not take any money from retirement for a home...that would keep me from really enjoying a new home, but that’s just me.

Re: Housing Market - Anyone Contemplating?

ScenicMaine — Mon, 13 May 2019 01:59:35 GMT

We want first floor living only. Looking to the future, one never knows how our health will be, so no unnecessary stairs wanted here.

I hope you find the first floor living you need.

Re: Housing Market - Anyone Contemplating?

queendiva — Mon, 13 May 2019 04:18:23 GMT

@ScenicMaine I bought and sold at this time last year. This is peak season for inventory, so you will have the best choices.

Personally, I would never buy before selling. Two family members did this last year. One house just sold after 13 months on market, the other has been for sale for about 9-10 months. Having carrying costs for two homes, even if one is owned outright (as both of these are)? Not good.

I always wait until after the buyers' home inspection of my home before making an offer on the next one as having two mortgages would crush me even short term. Buying before selling can be quite a gamble.

The listing agent offering 5% commission? Around here that is standard. No one gets 6% any more. Nothing special. She needs to show you how many houses she sold in 2018 and 2019 and how many active listings she currently has and average days on market. Getting a listing is easy. Getting it sold is a lot harder and not every agent is equal to the task. Slow down. Sounds like you have made a decision to sell but are rushing the whole sell/ buy process.

Re: Housing Market - Anyone Contemplating?

ID2 — Mon, 13 May 2019 09:50:33 GMT

The housing market is completely fierce here in the state I live!! My son and dil just found their first house. But every single house they were interested in, you had to act FAST or you lost it. They bid on quite a few and were quickly outbid. Everything ended up in a bidding war. The house they finally got was, once again, in a bidding war but this time my son won!

Re: Housing Market - Anyone Contemplating?

SilleeMee — Mon, 13 May 2019 11:13:17 GMT

I'm in Colorado. It's a sellers' market here right now and there are not enough houses, old and new, for the numbers of people looking to buy. Affordable housing is getting rare and that has caused a huge increase in the numbers of apartment complexes being built here. I own my home, free and clear, and although I can get a good price for it if I sell, it would not be enough to buy another house here. The prices of houses are, for me, too expensive. So I'm not selling because where would I go? Not into a townhome or apartment, no way.

Re: Housing Market - Anyone Contemplating?

Sweetbay magnolia — Mon, 13 May 2019 23:00:37 GMT

Life is short, and if you find a sweet house, and since each day could be your last, you would go out happy. At least that's how I feel about mine.

We found a little hideaway that many had rejected (for all the wrong reasons, IMO, but they all missed out) and love it dearly.

We also bought before selling and yes, it was stressful but once we listed the other house it sold in about a month. I would not want to go through that again, but who knows.

Good luck to you. It sounds like you are considering all the important stuff. Oh - we went through this in 2013/2014. Bought mid-fall, sold mid-winter (snow and all).

Re: Housing Market - Anyone Contemplating?

gardenman — Mon, 13 May 2019 12:35:51 GMT

The housing market here in rural South Jersey is abysmal right now. Homes that sold for $90,000+ a few years ago are now selling for $20,000 or less. The state and my local county have decided that nearly all older homes on septic systems need new modern septic systems and wells installed before they can be moved into. Add in the high property taxes and they've pretty much made those homes unsellable. The townships still appraise the houses very highly for tax purposes, but you get nowhere near that if you put the house on the market.

My neighbor recently offered their house and got a high offer of $8,000 for it. This is for a house on a double lot, in very good condition with a newer roof, vinyl siding and newer windows. It includes a two car garage and a small cottage out back. It's taxed at over $140,000 value, but there's not much room for a new septic system, only about a twenty foot square area out back, so the house is viewed as being largely unlivable by prospective buyers. There are septic solutions that can be fit into that space, but they're very expensive compared to conventional systems.

The last three homes that have sold in this neighborhood are still unoccupied as the buyers try to figure out how to comply with the new rules and regulations. They sold for $21,500, $22,000 and the latest for $15,000. The buyers all thought they were getting bargains.As they learn the costs of upgrading systems to comply with the new regulations they're learning how expensive a mistake they've made. One had a new septic system installed and a new well, but the cost was over $60,000 and getting the approvals for it all took well over six months of time. When she applied for an adjustment on her property taxes they re-evaluated the house higher than it was before, so instead of her property taxes going down, they've gone up. She's to the point where she's talking of giving the house to a charity just to stop bleeding money.

If you're buying a house and assuming the value will increase, you might end up disappointed. Housing values around here are in freefall. It's not because of the economy, but because of bureaucrats and their rules and high property taxes. Your investment can disappear in the blink of an eye by bureaucrats rewriting the rules.

Re: Housing Market - Anyone Contemplating?

kaydee50 — Mon, 13 May 2019 13:02:02 GMT

Having bought and sold several houses, my only advice is to sell first and then buy unless you can afford 2 places for an indefinite period of time. The housing market is very changeable and of course the realtor is going to tell you anything to get you to list your house. Good luck!!