On the subject of how long.....it depends upon the number of competitors in the market and the number of buyers. I am selling a property in which there is only one property (in any price range) in the entire zip code that is under contract. I had a discussion w/ a potential seller (not my seller, a potential seller down the road) who pulled their property off the market because it didn't sell, in their words, "at market price." I explained to them that they have to shine brighter than the competition.
Ask your Realtor to provide absorption rate and inventory stats for you. That will tell you how quickly the avaialable housing is being absorbed by the buyers. You can request the same info from nearby communities to compare. For example in one community, the inventory may be at 8 months (meaning it would take 8 months to absorb the exisitng number of properties for sale at the current rate of sale). In a nearby community, the inventory may be at 20 months. If you are up againast 20 months of inventory, you may find it necessary to be patient and price very competitively. I think it is very hard to make a blanket statement that you will sell in x days. It depends on how much activity is in your marketplace. If your goal is to sell qucikly, you must be competitive and shine brighter than your neighbor.
Please sell yours first!!!
Several years ago we were looking at houses or deciding to put an addition on ours. We didn't find what we wanted so we moved forward with the addition idea. We met with several architects and decided on one. Just as we were writing the deposit check, our Realtor called and said, "I found YOUR home." She was right. The minute I stepped through the doorway, I said we'll take it (not your best negotiating tactic). We offered above asking price with a home sale contingency with a 72 hour clause. They accepted a lower offer with no contingency. A month later, the buyers backed out and there was another bidding war with 5 buyers. This time we made an offer without the home sale contingency and got the home at $15,000 more than our first contingent offer. It was still a great price but we could have saved that money and more if we had already sold our home when the house first went on the market.
In order to sell our home, we had to fix up the room that we were about to tear off for the addition. This took time but we could afford the two payments for a while. Fixing it up took longer than expected and we put our house on the market at the worst possible time. By the time we had a buyer six months later, I was so stressed out and financially strapped that I never enjoyed moving into my dream home. We have lived here for (I don't even know how long) about 4 years and still have never had our "house warming party."
We did very well financially on buying the new house but took a huge hit on selling our old one. Today, because we did so well in buying, we had enough money to invest in rehabbing a similar home. Once again, I am paying two mortgages for 6 months LONGER than I expected. The stress and financial burden is so great that I might have to sell MY dream home because of some errors when we listed the other home for sale.
Life is too short and too unpredictable to put up with the emotional and financial stress of buying first and then selling. You will do so much better financially by selling first, that if you don't happen to find your dream home during your escrow period, you can afford to take a nice long cruise or live in a plush resort for a while. Don't even think about the dreaded, "I don't want to move twice." Think about the freedom of what you could do with the money from a 10% higher sales price, a 10% lower purchase price, 6 to 12 months worth of an additional unnecessary mortgage payment and attorney fees when the stress causes a divorce.
I think one of the greatest solutions to "being homeless" is the PODS storage system. http://www.pods.com/ I have never used them but it sure sounds perfect compared to renting a storage space and paying for movers twice. It also sounds like a good safeguard for delayed or canceled closings, too.
JIM, please let me live vicariously through you. Sell your home first so you can enjoy your next one.
Average time on market for your zip code: 30345
Closings since 7/1/2007: 63 Homes Closed
Average days on market: 77 days
Longest time on market: 1.5 years
Buy a 150,000 house for 100,000 at 6% and sell your house which you expected 150 for for 130 seems like a win win over the lifetime of your new home. Greed is the destroyer of opportunity.
We have now closed on our new place. Because this means we will own three homes at the same time. (Our current house, and weekend house, and the new house) We had to put 20% down and pay 6.5% However, we ended up with the house we wanted, and can do the renovations we want.
Our plan is to list our current home in mid January, and hope to sell by May. I have budgeted having to carry the house through October, so I have some wiggle room. We will spend the next month doing minor fixes, paining a few rooms that could use it, freshing up the yeard, etc. I believe it will be the best showing 3 bedroom ranch in the neighborhood. We will see...
We did the same thing about four years ago, the market was in flux then too. Having a little extra time waiting for our house to sell was great for us: 1) we didn't feel rushed to buy something and 2) by the time we found our dream house it was lower priced than it was three months prior.
Luckily, we only had to carry the mortgage for a few months. We were contemplating renting it out, when a buyer stepped forward. We sold it 6 months after listing it, but only two months after we bought our new place.
I seem to remember I got a "bridge loan" in the interim period. You may want to look into that while you are renovating and paying on the old place.
But to answer you're original question, winter is a tough time to put a house up for sale. There are still buyers out there, but fewer than in spring and summer. The good thing is the buyers looking in winter usually are motivated to buy, and if your house is priced right, you should sell in less than 6 months. Get a good realtor who has contacts, that how we found our buyer.
However, just when we thought everything was fine. The lender is now telling us the new property is investment property since it is so close to our current home. -Let's add a little more aggrivation to the mix.
If your home is in the top 10% of value (where condition meet price) then you should sell your home in 60 days or less. Otherwise, it's a different story altogether.
It can be a risk to many buyers/sellers to purchase a new home prior to selling their current home. It sounds like you are confident with your decision to do this and have run some numbers and know your budget well enough to handle two mortgages for a specific amount of time before it starts to hurt.
My company has a unique progam that may help give you a little more security going into a situation like this. Without going into too much detail it's a guaranteed sales program. There are a few requirements that need to be met, but this is not a fly by night home buying scam. This program is backed by our real estate franchise and not an individual broker or agent.
If you list your property taking advantage of this program it acts as any other normal listing agreement. You will get an offer on your home from our company that would be no less than 90% of the homes appraised value. After 180 days if your home has not sold then you have the option to accept our offer and sell your home or continue to leave it on the market and see if you can aquire a buyer. It's pretty simple. It works much like a corporate relocation program if you have ever had a company relocate you. In addition you also have the option to pull your equity out of your current home to purchase your new one.
Let me know if this sounds like something that would help you in your situation. I would be happy to go over all the details and answer any questions you may have.
Key here is to make suer that your home stands far above all others in condition and price. Foreclosure companies learned this first and acted to create a sellers market while everyone else was in a buyers market. What they did was to make sure the home was in the best condition possible and then priced it slightly BELOW appraised value. The end result was the buyers saw this as an opportunity to buy the home at a "right price" and found buyers bidding up the offers so they actually were able to increase the market value in a buyers market. Hope this helps - Steve
The reasons I think this could sell faster then some others are:
- This is a neighborhood of 1950s ranches. Some have been torn down and replaced with million dollar homes. Many have been updated out of reach. The remainder need renovations. Ours has a new kitchen and new baths, and a nice open feel. We would be pricing it 125k to 150k less then a home 4 doors down that is over priced. (Nicer kitchen, but the same size home.) We are looking at listing between $425k and $450k. Homes needing complete renovations are listed at $350k -$375k. There are very few decent homes in this area at that price.