Update to us selling our house while building

ccassaday · ‎10-21-2010

A couple of weeks ago I asked what you guys did while building a house with your current house. If you had to sell while starting ect. Today my dad went to the bank. He was told we do not have to sell before starting. Basically they give you a bridge loan to pay off the land and the HELOC. Then when you sell you pay off the bridge loan. This is seperate from the construction loan. We were told it is interest only and will be around $200 a month. This will save us a ton in rent. We can stay in our current house until our basement is dug and the frame is up. So at least three months of a bridge loan at $200 instead of 6 to 12 months of paying rent for $1200. Of course we still need to make sure our house is up for sale by June or July so we don't miss the warm weather since people don't like buying houses in the winter. So as soon as we have are meeting tomorrow we will be close to finalizing the deal. We are right on track at being ready to start by May. We just have to finalize the plans and my sister has to do the elevation. Then we can go to the bank. So exciting. Everything is starting to happen fast now.

Mominohio · ‎08-08-2010

Sounds like all the steps are falling right into place for you!

It is a long and complicated process, owning one place and buying another, and even more so when building. You all seem to be taking all things into consideration and doing a great job of covering all the bases.

One more step to being in your new home!

Lilysmom · ‎03-09-2010

@ccassaday, one thing for you to consider is putting your home on the market and trying to get an agreement where you could rent the home from the new purchaser until your new home is ready.

I have a friend who built a large two storey with a finished basement. She found it too big, too many stairs, etc. She started looking for a new home, found one and bought it without having her original home sold. Fast forward three years later, big house still not sold. She took quite a hit as the market softened. It is now rented at a loss after she carried both mortgages for a full year. She is now in a position where she is going to have to put both homes on the market and the same time and sell whatever one goes first.

It will be the bungalow that she bought that will sell first and she will be moving back into the big two storey home.

Scary tale I know. We sold our house before we put a backhoe on our property. It was inconvenient but the loss was small compared to the tens of thousands my friend has lost already.

A lot of it depends on how good the market is where you are and how marketable your home is. Big decisions. Good luck. LM

ccassaday · ‎10-21-2010

@Lilysmom wrote:
@ccassaday, one thing for you to consider is putting your home on the market and trying to get an agreement where you could rent the home from the new purchaser until your new home is ready.

I have a friend who built a large two storey with a finished basement. She found it too big, too many stairs, etc. She started looking for a new home, found one and bought it without having her original home sold. Fast forward three years later, big house still not sold. She took quite a hit as the market softened. It is now rented at a loss after she carried both mortgages for a full year. She is now in a position where she is going to have to put both homes on the market and the same time and sell whatever one goes first.

It will be the bungalow that she bought that will sell first and she will be moving back into the big two storey home.

Scary tale I know. We sold our house before we put a backhoe on our property. It was inconvenient but the loss was small compared to the tens of thousands my friend has lost already.

A lot of it depends on how good the market is where you are and how marketable your home is. Big decisions. Good luck. LM

That is defintly a option. But there probably aren't many buyers who would want to not move in for a long time. Plus we would then still have to pay a huge amount to that person that buys it. We aren't really worried about selling quickly. The market where I live is hot. There is no inventory. We had a house down the street sell very quickly once they priced it right. Another house across the street sold last spring in 2 days. It must of had multiple offers because they sold if above listing price. Our other neighbors house was sold in a week at listing price last fall. The only concern is not waiting to long so we don't miss the busy season. We are doing things right now to make it look nice. We also don't have a first mortgage on our current house. Just a small HELOC.

magicmoodz · ‎03-16-2010

@ccassaday

Your excitement over the prospect of building a new home is so apparent. I am very happy for you! I hope you continue to share the progress with us and post pictures when you can.

@Lilysmom

I am very sorry for your friend. Last year we purchased a condo and sold our home in that order. I was only willing to purchase the condo contingent on the sale of our home. We live in an area where property taxes are through the roof and I feared having to pay property taxes on two homes plus a monthly HOA for an undetermined amount of time. As it turned out, we sold our home in 5 days, but I am just not a risk taker when it comes to money and the unknown.

I hope your friend has better days ahead.

ccassaday · ‎10-21-2010

My mom says it makes her nervous also. But I think if we give ourselves three to four months we will be able to sell with no issues. As soon as our current house is finished with what we need to do we will be moving out to a rental. But it is nice to know we don't have to in order to start.

I will defintly take pictures along the way. I told my mom that she needs to take pictures of the progress to have as memories.

Something else which is kjnd kind of nice. My sister and husband just got done building a huge garage(seperate from their house) so we have a place to store our stuff instead of having to put it in storage. She says but if it isn't out of there in 2 years she is going to burn it lol.

Lilysmom · ‎03-09-2010

@ccassaday, my very best wishes to you. An exciting time for sure. I remember how busy a time it was for us but I loved building our new home and I am sure you will too! LM

Lilysmom · ‎03-09-2010

@ccassaday wrote:
My mom says it makes her nervous also. But I think if we give ourselves three to four months we will be able to sell with no issues. As soon as our current house is finished with what we need to do we will be moving out to a rental. But it is nice to know we don't have to in order to start.

I will defintly take pictures along the way. I told my mom that she needs to take pictures of the progress to have as memories.

Something else which is kjnd kind of nice. My sister and husband just got done building a huge garage(seperate from their house) so we have a place to store our stuff instead of having to put it in storage. She says but if it isn't out of there in 2 years she is going to burn it lol.

@ccassaday, watch out for mold when storing for a long time. LM

Lilysmom · ‎03-09-2010

@magicmoodz, my heart breaks for her. She has a very good job but is a single parent and who can afford to carry two mortgages indefinitely? She wound up with a pretty good rental to an executive for two years which is up in July. Market still bad. She built at the high market and it turned overnight. Praying for a happier ending to this story. LM

ccassaday · ‎10-21-2010

@Lilysmom wrote:
@ccassaday wrote:
My mom says it makes her nervous also. But I think if we give ourselves three to four months we will be able to sell with no issues. As soon as our current house is finished with what we need to do we will be moving out to a rental. But it is nice to know we don't have to in order to start.

I will defintly take pictures along the way. I told my mom that she needs to take pictures of the progress to have as memories.

Something else which is kjnd kind of nice. My sister and husband just got done building a huge garage(seperate from their house) so we have a place to store our stuff instead of having to put it in storage. She says but if it isn't out of there in 2 years she is going to burn it lol.
@ccassaday, watch out for mold when storing for a long time. LM

She has mice also. Lots of fields around. So nothing that can be chewed of destroyed will be stored over there.