Foreclosure in 30345>Question Details

Jim, Both Buyer and Seller in Atlanta, GA

How long should We expact our house to be on the market?

Asked by Jim, Atlanta, GA Mon Oct 22, 2007

We are looking at buying a new home before we sell our current home. I know that current advice says to sell first. But we are willing to carry two mortgages for a while.

So... If our house is priced right, in a great nieghborhood, and appealing to "a lot" of buyers, how long should we plan on? (I know these will be guesses. But why not?0

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Answers

22
I am not a mortgage expert (but I am a very good Realtor.) I was shocked to read your comment about your lender determining your new home was an investment. Sending a copy of this thread to a few RE Pros asking them to comment since they do mortgages. I have sold many homes to buyers who currently still held on to their existing homes, who had no difficulty treating their new home as a residential owner occupied primary home.

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.
3 votes Thank Flag Link Fri Nov 9, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
Contact
I'm going to repeat my post from another question a month ago.
http://www.trulia.com/voices/Home_Buying/Which_is_better_Sel…

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.
Good luck,
Ruth
2 votes Thank Flag Link Tue Oct 23, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
Estimating time on market is difficult to do without more information. Many factors go into why a home sells more quickly or more slowly than it's competitors. In today's market agressive sellers are getting the buyers. Homes which are aggressively priced, in excellent condition and a great value for the area in which they are located, will attract today's buyers.

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
Web Reference: http://www.SidneyWalker.com
1 vote Thank Flag Link Mon Oct 22, 2007
Do not guess...ask your Realtor to run a report of the past 6 months to see how long comps in your area stayed on the market before selling and at what price. This way you can get aggressive with your pricing with the knowledge of more likely what it would take to sell faster
Web Reference: http://www.iansellsnola.com
1 vote Thank Flag Link Mon Oct 22, 2007
Days on the maket is a direct function of right pricing. When priced right I expect homes to receive an offer after 5 or more showing by a Realtor or after 45. Of not, time to take a look at the price. If you have had no showings, it is time to take a look at the price.
0 votes Thank Flag Link Wed Feb 17, 2010
Its just a matter of numbers. if you are buying a once in a lifetime property priced at such an attractive price reduce your expectations on your current home ,offer better amenities and award incentives to your broker to get a fast but fair and just price.

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.
0 votes Thank Flag Link Mon Mar 24, 2008
Jim
hopefully you survived
man you got cahoonas
i bet you like skydiving

anyways

as usual

good luck
0 votes Thank Flag Link Mon Mar 24, 2008
I ended up with invester rate: 6.5% fixed for 30 years. 20% down. We already own a second home. So thiis is a third home. Both our fica scores are above 800. We have $700k in equity in the current two homes. (Even at today's prices.) So I don't consider us a real risk. I think with everything going on, no one wanted to put thier neck out.
0 votes Thank Flag Link Thu Dec 6, 2007
So Jim, were you able to get an owner occupied interest rate or did you have to settle for an investment loan?
0 votes Thank Flag Link Wed Dec 5, 2007
Thanks All.

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...
0 votes Thank Flag Link Mon Dec 3, 2007
I was going to agree with Ruth, if you find your home buy it!
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.
0 votes Thank Flag Link Mon Dec 3, 2007
I agree with Deborah. Investment property? Huh?!

I'd shop around and talk to other lenders. It sounds to me like an excuse to raise your rates.

Ruth
0 votes Thank Flag Link Sat Nov 10, 2007
Ruthless, Other/Just Looking in 60558
MVP'08
Well, We ended up buying a new home before selling the old one. We will be doing major renovations to the new one before we move in. So, we will have two martgaes for a while. But there is nothing in the area we want with the space we want. (You either have 1950's ranches in the $350 - $450 range, or Mcmansions for $1.2+).

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.
0 votes Thank Flag Link Fri Nov 9, 2007
Depending on your home situation, if you do not have to sell first then don't.

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.
Web Reference: http://www.jrjarvis.com
0 votes Thank Flag Link Tue Oct 23, 2007
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
Contact
Hi Jim, how long can you really hold onto two mortgage payments? Would you consider renting out your current home?
0 votes Thank Flag Link Tue Oct 23, 2007
At this point in the thread I don't think I'm going to tell you much you haven't heard yet. The information Sidney provided you with is a great way to get an idea about the market in your area, however I would take it a step further and check the data for homes in the price range you will be selling in.

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.
0 votes Thank Flag Link Mon Oct 22, 2007
Is your selling price comparable to the latest sold in your community? It should be. Does it look like a model? If you answered yes to the above question and you live in a desirable area then you should be able to sell and be out within 3 months. May you be sucessful with this.
Web Reference: http://lantierrealty.com
0 votes Thank Flag Link Mon Oct 22, 2007
Regardless of market conditions, a properly priced and marketed home should sell in 60 to 90 days. Don't over think this!
0 votes Thank Flag Link Mon Oct 22, 2007
Well . . . . . the short answer is WHO KNOWS. Any specific time frame by anyone, would be a "guess" at best. However, the home with the best appeal of the top 1/3 of available homes, and priced below those which are most competitive, WILL SELL FIRST AND FASTEST.

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
0 votes Thank Flag Link Mon Oct 22, 2007
Thanks.

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.
0 votes Thank Flag Link Mon Oct 22, 2007
Good question, but you are going to find that details will make a difference. In metro Atlanta there is about 13 months of inventory on the market right now. If your house is what you say it is, then that will make a big difference in how long it stays on the market. If you can price it under the market price and it is in great condition and a good location, all that is left is making sure as many people see it as possible.

Good luck,
Brent Garrison
404-392-7368
0 votes Thank Flag Link Mon Oct 22, 2007
Because there are som many variables if you will contact me at 404-925-6027 I can give you a much better educated guess.

Andy Nelms
The Nelms Team
Web Reference: http://www.thenelmsteam.com
0 votes Thank Flag Link Mon Oct 22, 2007
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