should I sell in 2011?

Asked by Klinejoe, 17407 Sun Dec 5, 2010

I need to make a decision to build a new home and sell current home. I own the land and would like to build a bigger home before the new sprinkler system code goes into effect (would need a permit by the end of the month). I am getting a good price on the new home but will take a hit on the current home. If the new home doesn't sell at all I couldn't carry 2 mortgages.

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Jeanne Feeni…, Agent, Basking Ridge, NJ
Sun Dec 5, 2010
If you cannot risk carrying two mortgages then proceed very cautiously. Suggest you talk with a local agent to get a gauge of the market absorption rate, ie, time to sell, of comparable homes in your area. Homes are taking longer to sell, and while some areas are performing better than others, it is taking longer. So talk to your agent, and also to your banker - because your ability to finance the new construction may hinge on your ability to sell. The best scenario would be to sell first so that you don't have to worry about that piece of the puzzle.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
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2 votes
Brian Schulte, Agent, Sierra Vista, AZ
Mon Dec 6, 2010
If you can afford 2 payments and tenants, do you really want to deal with these? Have you ever lost money on stocks? ... or some other form of investment? If it would be wise for you to sell, why not?

If you think your new home is prudent for you, then you can think of this as making up for sale. Take a moment to say " I could've had a V-8!" and be done with it. Cry now and smile when you move in.

In the end, making a decision because of a sprinkler system code makes me scratch my head (most of my hair is already gone). Since I do not know the details and what percentage of costs it will really add to the cost of the home it is your money. !Bang! Make sure you can sell your house or you will end up with 2 payments.
1 vote
Donna Sites, , York County, PA
Sun Dec 5, 2010
If you can't carry two mortgages- don't do it. I would be happy to do a CMA (comparative market analysis) on you current home. Since homes are selling when it's priced correctly, my only suggestion would be put your home up for sale but be preparded to rent while you new home is being built. There are plenty of people that would LOVE to rent to a credit worthy person to take the financial stress off having a vacant home! While this maybe a hassle to rent while the home is being built- you can be sure you wont end up with two homes! Don't worry about the sprinkler system- saving a nickle now could cost you many dollars later! Since I specialize in York County, give me a call for a honest "pressure free" CMA. Thanks, Donna 717-487-0652
1 vote
Don Maclary, Agent, Virginia Beach, VA
Mon Dec 6, 2010
If you cant afford the 2 payments you probably would get your answer from the bank.
Sell what you are in and then rent while building or sit tight where you are.
0 votes
Kevin Pellat…, Agent, Franklin, TN
Mon Dec 6, 2010
Start at the end. If you found your new home to be complete, and your current home has not yet sold, what are your options? If your home sells in time, great! If not… can you rent the current home and still move forward with your move into the new home? SHOULD you?

There are scenarios where you might “win” by doing this, but they are not as common as the ones where you “lose.” My hope is that you would do the math up front, perhaps with a trusted money advisor, and decide what is right for your plans and what risks you are taking on. Don’t let yourself be disillusioned now while you have control of your situation; only to have your options taken away from you later.

Great that you are seeking advice - at first blush it sounds like Debbie Rose might have the short & sweet answer for you below.

Kevin Pellatiro
Hoping to help you take advantage of the market – when you are ready.
(615)714-7918 |
0 votes
Fran Rokicki, Agent, BOLTON, CT
Mon Dec 6, 2010
You could rent your current home, if selling will not work for you. The rental market for homes, has increased in this market. The home that you are purchasing, is larger, yet you are buying it at a reduced price. So, you have to balance what you will save, versus the profit on your current, smaller home. I would suggest, pricing it on the money, and letting it go. With the interest rates at an all time low, you will be ahead in your finances, living in the new, larger home.
0 votes
Emily Murphy, Agent, Pittsburgh, PA
Mon Dec 6, 2010
Only you can decide the cost/benefit of selling now and building. I would suggest speaking with a local Realtor to give you a CMA, so you can get some insight on current sales activity.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Dec 6, 2010
If you can't carry two mortgages and really would like to sell and move to a new home, start interviewing agents and go from there.
0 votes
Edith Karoli…, Agent, Winnetka, IL
Mon Dec 6, 2010
In that case, put your current home on the market and sell if you can, you may really price it super competitive to outdo the rest of the competing homes, and then you can go ahead with building your new home....It is a great risk in this economy to count on selling within a short period of time....

But a local Real Estate Agent could be of some help, at least with competitively pricing your current home, it all depends on your financial situation, the amount you owe the bank on your current home etc. We may not have all the right recommendations for you, not knowing all the details...

Good Luck and please connect with an experienced area Realtor for advice and guidance.
Edith YourRealtor4Life and chicago Connection
Working always in the very BEST interest of her clients
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0 votes
Debra (Debbi…, Agent, Livingston, NJ
Sun Dec 5, 2010
Actually, I think you've answered your own question.

You stated you "couldn't carry 2 mortgages".

Since that's the case (as it is with many people), then you have no choice other than to sell now, have that money sitting in the bank, and then proceed with buidling your home.

Of course, in that scenario, you'd have to rent in the interim.

It's not easy, especially in this economy, to choreograph building and selling a home, and not being caught with 2 mortgages.

Good luck!
0 votes
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