View Full Version : Sell now, buy later?
I've been working towards getting our house ready to sell for a couple of years now and we're about there. It's a split level, and I'm ready for a ranch so we don't have to haul groceries and laundry upstairs and down. The market in our city is a very tight seller's market - there are hardly any houses available and the ones that get listed are being sold for $15-$20K over listing price, no contingencies. Not sure ours if that would happen for our house, but I don't think we'd be sitting on it for very long.
I've had a Realtor friend run some comps on our house. I was hoping for $140K and it came in at $165K. I'm toying with the idea of selling it, moving stuff to storage, renting somewhere month to month or living in a long-term hotel type place until we can find the house we really want - maybe 3-4 months? if we did find something, we'd have the down payment available and wouldn't have to make the purchase contingent upon sale of our house. It's just DH and me and our dog. Maybe our daughter if she moves home after graduating from college in May.
Friends seems to think more houses will be on the market this summer and the pressure on buyers will ease up some.
Thoughts, opinions or advice? It's a lot of hassle, but moving always is, I guess.
How big is the dog? A lot of places don't like dogs, especially bigger ones. And I'm constantly hearing it's a landlords' market with rental stuff going quickly.
She's about 65 pounds - that adds an issue to work through, for sure.
Whatever you can do to make moving easier, I say do it. I just moved from one rental to another and cannot imagine the hassle and stress of buying on contingency and then hoping for all the intricate timing to work out. I even scheduled four days of overlap between places and wish I'd made it a full week or even two.
As long as you're having some downtime between homes, you might consider renting for longer and seeing how you like it. I tried this about a decade ago (after 15 years of owning) and liked renting so much that I never bought again -- yet. Maybe someday, but for now life is so much easier in a professionally managed rental. If you're set on buying again, then maybe take some time to consider other towns, regions, or whatever additional factors might come up as you age.
One concern I would have is that if the market is hot how much more will you have to pay months in the future than you would today.
Canadian house prices have skyrocketed especially the past few years. With covid, people are frantically trying to get out of both apartment and townhouse condos for detached homes. The US experience may be very different. Sell and try a properly managed rental as suggested above to find out what you really need and want "today and for the next 20 year"s. You may want to minimize house maintenance and enjoy an RV, cottage or travel at this stage of your life.
The saddest story I watched unfold was a couple who sold a farm for a substantial sum and built the dream home of their 30's stage of life. Within in a couple of years, they realized what a serious mistake they had made in not building the dream home of their 60's stage of life. with kids gone and increasing mobility challenges. People change for a whole range of normal reactions to how their lives unfold. Your house has served you to date so now reevaluate.
Do your own research on the market. My community is so hot that homes under $750k (yes) have been going up steadily for 5years already. I mean to the tune of nearly 50%!
Are people moving in? Are people just moving around? How has the market been for the recent 5y?
Here, rent is higher by 20% on a month by month as opposed to a 1 years lease (shortest anyone will do).
It is really your appetite for risk of prices rising vs assuming they might drop.
We have not been able to find a house where we are looking and of course, the virus really threw everything out of whack. The prices escalate month by month and realtors will tell us that the listing price is just a starting point. There might be one a day in our price range and it is gone in minutes at $10K or more over list. I was shocked to see that the little bungalow we sold in Austin to move here is now valued at $700K which is riidiculous. If we are ever able to move again, I will take out a temporary mortgage rather than have to move and rent as we did before. I guess if rental rates are reasonable where you live and you don't mind moving twice, then it makes sense. Pets are another conundrum when renting.
I'd be tempted to say strike while the iron is hot. The spring is coming and in many, many areas there is NO inventory. That's what's happening in my old NJ neighborhood. Realtors are just waiting for a house to list and then it's gone. COVID has had a really interesting effect on the housing market. People are fleeing the cities, either for primary residences or second homes.
If I were you I'd take advantage of the market since you're planning to sell at some point anyway. I'd talk to a couple of realtors about timing--I know most young families want to buy in the spring/summer before the next school year. I also like the advice to use this opportunity to rent in order to think about your next steps.
I'll add, be ready to pack and get out. No one is patient to move in anymore. Mortgages are approved so dang quick compared to 30 years ago it's unreal. Some people are having to deal with a 2 week closing.
Teacher Terry
3-11-21, 9:37pm
We have a housing shortage but mortgages are still taking a month to close. Here you would find it easy to rent with a big dog but when I lived in Wisconsin it was next to impossible. Prices are going up all the time here. Our house hits the market tomorrow at noon and the agent expects multiple offers and to be in escrow by Monday.
SteveinMN
3-11-21, 10:40pm
Below the stratospheric price range up on "the hill (https://www.visitsaintpaul.com/blog/summit-avenue-history-the-story-of-saint-pauls-famous-street/)", homes in St. Paul have been in low inventory for a couple of years now. Our particular neighborhood progressed from "desirable" to "hot" so buyers are forgoing contingencies on selling their own house, inspections (dumb, dumb, dumb) and, in some cases, even forgoing in-person visits to the house to be able to make an offer before others do (and the price goes up further).
Our market-median house is worth about 12% more now than it was just last fall. More people here would sell their houses if there were more houses to buy in different price brackets. Long story short, if you sold a house here now, you'd probably make some good money, but you'd spend it on another place or on rent or on moving twice, and the prices keep going up because they're not making any more houses in this price range right now.
But that's this housing market. The Topeka area can be quite different. Beckyliz, I guess I'd poke around to find out how much it would cost to rent an apartment in which you would feel comfortable and which would take a 65-pound dog. That effort alone might be a showstopper. Then figure out the hassle factor of a quick sale and move and how long you might be in temporary housing before you found what you wanted.
Our market-median house is worth about 12% more now than it was just last fall.
We're up 15%. It is insane! We're now worth 511% in 30 years. That seems sooooo wrong. Moving to something smaller in a more desirable 'hood would cost us another 30%.
The low interest rates are highly motivating for first time buyers as well as those moving in. Sigh.............
I wonder what percentage of homes in more desirable places are being purchased by investors? In one area we are looking, it is very high. I looked up the city council meetings in that town and there is always a list of homes that are seeking approval to be short term rentals.
The logistics involved in rehabbing a house, putting it up for sale, and casting about for somewhere to live in the meantime is daunting--especially when house #2 would be in another state. Every time I start thinking about the prospect, I want to take a nap.
DH just spent some time talking to a realtor where we are house-hunting and asked him what the heck is driving the frenzy there. Realtor said every single lot and existing house he has sold in the last month comes down to one word - "Californians." Cash offers sight unseen. I am realizing we missed our opportunity to move back closer to family:(
iris lilies
3-12-21, 1:34pm
Californians will ruin everything. I am grateful we are far enough in, away from the coast, that migration here will be well after I am dead.
now to beckyliz’s question: I don’t see a clear path for you and that’s probably why you are asking this question.
The Pro’s of moving now are that you could start to downsize your stuff, get rid of your clutter, prepare for a smaller, flatter home. This has value, unless you’ve already done it. But there really is no real decluttering until you have to empty out a house.
For a Con, if the house you live in isn’t problematic in someway, then there’s probably no real reason to put it on the market right now. Now is a good time to put any problematic property on the market because there’s far greater likelihood that somebody will grab it.
I'm in Topeka, KS and our real estate price swings are much, much milder than on the coasts and larger cities in the midwest - like Twin Cities, etc. I'm very confident that more houses will be on the market in the next few months, making it easier to buy. I don't think housing prices here will continue to increase indefinitely.
I've always prided myself on being good at decluttering, but once I decided to make moving a goal, i continue to find more stuff to get rid of! I appreciate your insights.
DH just spent some time talking to a realtor where we are house-hunting and asked him what the heck is driving the frenzy there. Realtor said every single lot and existing house he has sold in the last month comes down to one word - "Californians." Cash offers sight unseen. I am realizing we missed our opportunity to move back closer to family:(
Such a bummer!! Has your house in CO appreciated at all? Can you use the equity to your benefit, maybe not now, but in the future when the frenzy dies down?
Can you use the equity to your benefit
In our case, this house is paid in full and has appreciated $100K in four years. Finances aren't so much the issue but just finding a house. Maybe we should look in Topeka:) We are also in a multi-level house which will be an issue at some point.
GeorgeParker
3-12-21, 3:05pm
Long story short, if you sold a house here now, you'd probably make some good money, but you'd spend it on another place or on rent or on moving twice, and the prices keep going up because they're not making any more houses in this price range right now.
But that's this housing market. The Topeka area can be quite different. Beckyliz, I guess I'd poke around to find out how much it would cost to rent an apartment in which you would feel comfortable and which would take a 65-pound dog. That effort alone might be a showstopper. Then figure out the hassle factor of a quick sale and move and how long you might be in temporary housing before you found what you wanted.l agree. Especially the part about if you sell in a hot market you'll also be buying in a hot market, so getting a higher price or quicker sale on your current house probably won't benefit you as much as you think it will.
Based on what you've said and my own experience selling a house and moving to a different one several times over the years my advice is to keep decluttering and stay in your current house until you find a house to buy that you love and can afford. Doing the sell-rent-buy thing and having to move twice, plus the cost to rent both a place to live and storage space probably isn't worth the cost and hassle. And if the market is as hot as you say, your real estate agent could probably find a buyer for your current house at a suitable price within a few days after your offer on the new house is accepted.
It also makes a difference what kind of stuff you'll be moving, how far, and whether it will be do-it-yourself or hiring a moving company. When my cousins moved 80 miles, it turned out having a moving company move their furniture would cost more than the rather old furniture was worth, so they rented a DIY truck for their non-furniture, had an estate sale of everything they were leaving behind, and gradually reacquired just-as-good or new furniture for their new home. YMMV but it's worth considering.
Bottom Line: Only you can decide what the best thing to do is, how much stuff to move or sell or leave, and all the other details. But whatever you decide will probably be ok.
I’m reminded of an article I read shortly after the 2008 crash about a family that sold their home in OH and moved to Philadelphia for a job transfer. In philly they could afford much less house for the same money. Then shortly before the crash they got transferred back to OH. Their philly house had almost doubled in value while prices in OH had gone up much more modestly so they ended up having money to buy a much nicer house back in OH than the one they had sold a few years earlier.
When we moved to San Francisco in 2008 we knew it would be a good time to buy but we just couldn’t swing it. Oh well.
Teacher Terry
3-12-21, 3:57pm
When we moved across the country we hired people to load our uhaul at one end and unload at the other end. We used 2 small local companies at both ends and that was cheap.
The idea is to sell in a hot market and lay low in a rental for a few months until the market cools down and more houses are available. My Realtor says there are usually 300 houses on the market this time of year; there are now 87. If you want to buy a house now, you can't have any contingencies and have to offer over the asking price. Some are foregoing inspections. I'm not willing to do that.
At least this way, if we do find a house we want, we don't have to include that it be contingent upon the sale of ours; we'll have the down payment in the bank.
iris lilies
3-16-21, 8:57am
I can see the attraction of having ready cash available to buy the replacement house. The complexity of selling one house when negotiating on a second house is stressful.
It’s just that in these times of high real estate costs, will you come out ahead on finances if you have to rent at high rates for a while? Would you also need to pay storage unit fees?
Me, I would probably do what you’re suggesting because I would like the simplicity of being ready to buy my second house without needing a contingency offer to sell my current one. The money involved is less important to us.
Beckyliz, I think it's a good idea. Like IL says, less stressful all around.
Teacher Terry
3-16-21, 11:35am
If people are moving in then prices may not go down. We have both retirees and tech workers moving in like crazy so I doubt our prices will go down. What’s driving your real estate market?
Powered by vBulletin® Version 4.2.5 Copyright © 2025 vBulletin Solutions Inc. All rights reserved.