Selling/Buying Question (LONG)

Our family is going to be expanding in the next couple of months and we have a dilema.

We bought our house in 2007 in a town that we love. It is a great house and we can def. live here with another child but ideally we planned to build up in a couple of years to the existing upstairs - add a master bed/bath, make a bedroom larger etc. We are in a great location, big property for Nassau and right down the block from the water. Plus we love our neighbors, who have become great friends.

Sooo...here is the dilema. We know expanding is going to be a ton of money and we haven't built enough equity in the house to get a loan, plus values have gone down thanks to our lovely governemnt officials.

DH and I have been talking and went to look at a house a few block away and we really like it. Everything we need and MORE. Of course the deal is we have to sell our house first which is going to be a PIA!!! Plus, I moved about 10 times growing up, so I am not a big fan. I know we might take a hit, but I think it could work out and we could afford the other house.

I am so torn!! Stay, suck it up and expand in a couple of years or put the house up and sell? I was thinking of calling the realtor who was showing the house today and ask him to come appraise our house and let us know what we could ask. Plus, it might be a win/win for him if we give him the listing, tell him how we want the listing we saw with him today but not sure if this is a conflict of interest for him.


UGGG! WWYD???? Advice, suggestions, a dose of reality would be greatly appreciated!!

TIA!

Message edited 2/20/2011 7:16:50 PM.

Re: Selling/Buying Question (LONG)

We are going thru the same thing..well almost...lol

We are looking to move much further than where we are but we too bought in 2007...need it say more.

We are going to take a hit on htis house however we see it as we will also be BUYING for much cheaper so maybe it balances.

As far as the realtor, in 2007 wee found oour current house and made the realtor for it list our previous house. So it was good for him bc I felt like he more "incentive" to get the job done BUT I also never felt like I had a realtor on our side if you get what I mean.

Good luck to you!!!

Re: Selling/Buying Question (LONG)

we went through the same thing. so annoying... We are in the process of an expansion after trying to sell. we would have had to pay about 60k just to get out. We are using all of our savings but we would have used that towards a bigger house anyway. There are no loans out there other than a personal non secure loan with a 12 percent rate...if I were you ide stay and start saving for an extention. The prices are about 150/sq foot so a dormer extention would be about 80-100k./ Its crazy, we have spend so much already and havnt even poured the foundation yet. Architect, permits, moving gas meter, its nuts! Good luck with whatever you decide!

Re: Selling/Buying Question (LONG)

I think you probably should do some more research before you decide. Have you gotten estimates for how much it will cost to do the work you envision doing on your current home to make it "ideal" for you and your family down the road? You probably should. Also, you should get an idea of how much you could sell your home for in this market. But to do that, I would have several realtors come in and do a comparative market analysis. Honestly, although there is hard data that realtors should and do look at, pricing a home is still somewhat subjective -- it's an inexact science.

I would NOT recommend using the listing agent on the other house you are interested in. First of all, that agent represents the seller of that other home, and all of his fiduciary duties (of loyalty, confidentiality, etc.) are to that seller in that transaction. There is such a thing as dual agency if you wanted him to represent you as a buyer in that transaction, but that is a complex scenario requiring all parties' consent, and since that listing agent is a virtual stranger to you right now (as opposed to a friend or relative), I don't see any benefit to you of havng him represent you in that transaction.

So given that he represents the seller of the home you are interested in, if you consult with him regarding the listing of YOUR home, he will be gaining information about your situation and finances that he is obligated to share with the seller, if you indeed go ahead and make an offer on their home. There is really no advantage to you using that agent. Any good agent will work hard to sell your home because this is a business that is based on reputation and referrals, and let's face it, the listing agent does not get paid for any of his efforts unless the property he is listing sells. I don't see how the listing agent of the home you are interested in possibly buying has any incentive to work harder for you. There are so many agents out there right now that you can do some research or ask family and friends for recommendations, and that is probably a better way to go about it. Beyond getting a pricing recommendation, you want to make sure you "click" with any agent that will list your home, and find out how they work, what services they offer, etc. Different agents handle listings differently, and a strong agent can do so much more than stick a sign in your yard and put your house on MLS.

Also, if you are thinking of moving just because you really like the one particular home you saw, consider the fact that it may take awhile to get your home sold, and that other home may not be available by the time you do. Sellers will not usually consider an offer that is contingent on the sale of the buyers' current home. Sometimes they do, but it's not that common, because there is uncertainty as to when the buyers' home will sell, if it sells at all. So the timing may not work out.

I do think it's a great time to buy, with the still low prices and interest rates and the number of houses on the market. As another poster pointed out, even if you sell "low," it is somewhat offset by the fact that you get a LOT for your money these days. However, in your situation, it sounds like you are pretty happy in your current home, and that it works for you now, and that if you need to expand in the future, you can. So if it were me, I would probably stay where I was.

But please let me know if I can help with your situtation, even just to answer questions.