Would it be stupid to try to sell my house now?

[Raineyrocks]

Rick and I have been talking about selling our house because it's too big and the mortgage and heating are way too $$.   Is it the time to sell and buy?

We want to move into a smaller house and be closer to the city, any city in New Hampshire.   

[ali-cat]

Short answer, YES. It's a very good time to buy if you have the money, but a really bad time to sell. 2 years ago my in laws had their house on the market for $400,000, now it wouldn't sell for $250k...

[ByronB]

Try to find a renter.

[Raineyrocks]

Short answer, YES. It's a very good time to buy if you have the money, but a really bad time to sell. 2 years ago my in laws had their house on the market for $400,000, now it wouldn't sell for $250k...

That's what I figured, thanks!    I wish we had enough money but we would need to sell this house to pay off the mortgage, closing costs, and downpayment for another house. 

[Raineyrocks]

Try to find a renter.

That's not a bad idea but we'd have to charge a lot of rent probably too much because we pay about $1900 a month for our mortgage. 
Then the heating costs between propane and electricity are about $600 a month and we keep the heat real low and do not turn it on upstairs. 

The house is just too big and now that we don't have all the kids at home it just doesn't make sense to keep it plus I'm bored to tears up here I want to be invovled with activism.  We should've taken more time in choosing a location and house before moving up here.

Okay I feel better after whining even though I'm still stuck here! 

[David]

You live up near Lebanon NH if I am not mistaken, try to rent a room or two out to a freestater.  You could prolly get close to $400 a month per room.  You would of course have landlord type responsibilities, but you could easily rent out week by week, which can help you weed out weirdos, and the occasional deadbeat(yeah, there are libertarians who are moochers)    .  You will of course lose some degree of privacy, as you will have someone you barely know walking into your house.  But the best case scenario is you will rent to someone who is great. 
Good luck in whatever you choose to do. 

[Raineyrocks]

You live up near Lebanon NH if I am not mistaken, try to rent a room or two out to a freestater.  You could prolly get close to $400 a month per room.  You would of course have landlord type responsibilities, but you could easily rent out week by week, which can help you weed out weirdos, and the occasional deadbeat(yeah, there are libertarians who are moochers)    .  You will of course lose some degree of privacy, as you will have someone you barely know walking into your house.  But the best case scenario is you will rent to someone who is great. 
Good luck in whatever you choose to do. 

I live in Campton but I think I was in Lebanon today if that's where Dartmouth-Hitchcock is and I loved it there.    Thanks but then I won't have any money to put a downpayment on another house otherwise it would be a good idea if anyone would want to live in Campton.  It's so far from Concord, Keene and the majority of freestaters.   

[error]

I live in Campton but I think I was in Lebanon today if that's where Dartmouth-Hitchcock is and I loved it there.    Thanks but then I won't have any money to put a downpayment on another house otherwise it would be a good idea if anyone would want to live in Campton.  It's so far from Concord, Keene and the majority of freestaters.  

There are people who want to move up that way. So if you keep your eyes open you might be able to find an incoming Free Stater or six to rent to, or even sell to.

[dalebert]

It's definitely a buyer's market. For what it's worth, any time you're buying AND selling in order to move, it's kind of a wash. If you're moving from a rural area to an urban area, you could see an increase in housing costs, but if you're also downsizing, that may help make it up.

Also, since it's SUCH a buyer's market, you may find that you can afford it. There will be some insane deals out there. You could keep an eye out for auctions as there are a lot of foreclosures and banks trying to unload properties and the related expenses. Auctions typically require you to put up $5000 in order to bid, and then your deposit is linked to that bid and you must get the money and close on it within a short period-- 30 days I think.

[Raineyrocks]

I live in Campton but I think I was in Lebanon today if that's where Dartmouth-Hitchcock is and I loved it there.    Thanks but then I won't have any money to put a downpayment on another house otherwise it would be a good idea if anyone would want to live in Campton.  It's so far from Concord, Keene and the majority of freestaters.  

There are people who want to move up that way. So if you keep your eyes open you might be able to find an incoming Free Stater or six to rent to, or even sell to.

I hope so , thanks!    Should I post it on Craigslist or get a realtor?   

[Raineyrocks]

It's definitely a buyer's market. For what it's worth, any time you're buying AND selling in order to move, it's kind of a wash. If you're moving from a rural area to an urban area, you could see an increase in housing costs, but if you're also downsizing, that may help make it up.

Also, since it's SUCH a buyer's market, you may find that you can afford it. There will be some insane deals out there. You could keep an eye out for auctions as there are a lot of foreclosures and banks trying to unload properties and the related expenses. Auctions typically require you to put up $5000 in order to bid, and then your deposit is linked to that bid and you must get the money and close on it within a short period-- 30 days I think.

I have seen a lot of great deals the only problem is we would need to sell this house to have enough to pay the mortgage off, closing costs for the old and new house and a down payment.     So we may have to ask too much for the house that's a big minus on the selling factor. 

That's what I want to do, (find foreclosures), but how do I do that?   I wonder if we would need a lower downpayment and could work on selling this house at the same time.

As far as auctions the only downside is we don't have $5000 or the percentage that would be due in 30 days.   It would be such a relief to downsize with square footage and money, including heating bills.   

[MaineShark]

That's what I want to do, (find foreclosures), but how do I do that?

I was speaking to Mark Warden earlier today, and he's touring some foreclosures in Manchester tomorrow (I'm looking over the plumbing and heating systems for his clients at the same time).  So I would presume that he knows where to find them...

Joe

[Porcupine Realtor]

Rainey,
Many good points were made below.  The bottom line is that if your current home expenses are causing you and hubby a lot of grief, get out.
I recommend that you put your home on the market immediately if you are committed to selling it.  The selling season is nearly over.  Price it 5% below market and make it sparkle when showing the place.  PM me or call me and I'll give you pointers on demonstrating the house to prospective buyers.  I recommend hiring Dave Ridley to do a Ridleo tour of your house with narration and uploading the vid to CL and to the MLS listing.

As to finding a good Realtor, here are couple basics.  One, it's best to interview 2 or 3 Realtors to find one that meets your personality style, professional background expectations, communications skills, and straightforwardness about market conditions and your house's marketability.  Second, poke around on Realtor dot com for your area, as well as CraigsList and the area newspapers and magazines, and drive nearby neighborhoods to see whose signs and advertisements you see the most.  That agent is working hard, knows the area, and puts money and full-time energy into his job.  That's the kind of person you want listing your home.

Do some basic financial breakeven analysis to see what the "net proceeds" are that you need from the sale of the property to walk away without writing a check at closing.  Figure 8% to sell the house, including commissions.  So if you owe $150,000 on the loan, divide that amount by .92 (92%) to get $163,043.  If your selling/purchase price is $163,000, you will receive no money at closing, but nor will you have to pay money to your lender to get out.  Any $ above that sales price are $ in your pocket.  Now the self-honesty:  are you willing to write a check to sell the property at a loss?  If so, how much?  If you are now hemorrhaging $2,600 every month and you could live comfortably/happily in a smaller house for $1,900 a month (payments + utilities), then that's $700 a month that you are better off every month by selling.  So if it costs you $5,000 out of pocket to sell, your breakeven is only 8 months, after which you'll be putting extra money in your savings account every month, month after month.  And if you rent (instead of purchase) for a year or two, the savings are even better.

I understand this is a bit of an over-simplification, but it is a good and common exercise in family economics and personal priorities.

Mark
Porcupine Realtor
liberty dot warden at gmail

[Raineyrocks]

That's what I want to do, (find foreclosures), but how do I do that?

I was speaking to Mark Warden earlier today, and he's touring some foreclosures in Manchester tomorrow (I'm looking over the plumbing and heating systems for his clients at the same time).  So I would presume that he knows where to find them...

Joe

Okay, thanks! 

[Raineyrocks]

Rainey,
Many good points were made below.  The bottom line is that if your current home expenses are causing you and hubby a lot of grief, get out.
I recommend that you put your home on the market immediately if you are committed to selling it.  The selling season is nearly over.  Price it 5% below market and make it sparkle when showing the place.  PM me or call me and I'll give you pointers on demonstrating the house to prospective buyers.  I recommend hiring Dave Ridley to do a Ridleo tour of your house with narration and uploading the vid to CL and to the MLS listing.

As to finding a good Realtor, here are couple basics.  One, it's best to interview 2 or 3 Realtors to find one that meets your personality style, professional background expectations, communications skills, and straightforwardness about market conditions and your house's marketability.  Second, poke around on Realtor dot com for your area, as well as CraigsList and the area newspapers and magazines, and drive nearby neighborhoods to see whose signs and advertisements you see the most.  That agent is working hard, knows the area, and puts money and full-time energy into his job.  That's the kind of person you want listing your home.

Do some basic financial breakeven analysis to see what the "net proceeds" are that you need from the sale of the property to walk away without writing a check at closing.  Figure 8% to sell the house, including commissions.  So if you owe $150,000 on the loan, divide that amount by .92 (92%) to get $163,043.  If your selling/purchase price is $163,000, you will receive no money at closing, but nor will you have to pay money to your lender to get out.  Any $ above that sales price are $ in your pocket.  Now the self-honesty:  are you willing to write a check to sell the property at a loss?  If so, how much?  If you are now hemorrhaging $2,600 every month and you could live comfortably/happily in a smaller house for $1,900 a month (payments + utilities), then that's $700 a month that you are better off every month by selling.  So if it costs you $5,000 out of pocket to sell, your breakeven is only 8 months, after which you'll be putting extra money in your savings account every month, month after month.  And if you rent (instead of purchase) for a year or two, the savings are even better.

I understand this is a bit of an over-simplification, but it is a good and common exercise in family economics and personal priorities.

Mark
Porcupine Realtor
liberty dot warden at gmail

Excellent advice, thank you so much!      I will show this entire thread to Rick later.