Are we making the right decision?

So, I’m stressed and can’t sleep.

We got an offer on our house. We’re selling for $385, they offered $340 and want to close by Oct. 25. Thing is, we figure, if we sell anywhere less than $375, we’ll be losing money and as it is, it will be TIGHT because we put an offer on a house in foreclosure, and plan to pay cash, with the inheritance money from my father. It will require EXTENSIVE renovations, which we'll obviously have to pay out of pocket.

Problem too, buying through foreclosure can take upwards of a year, so if we sell our house now, that will leave us homeless, with 2 kids, for god knows how long, paying rent towards an apartment for god knows how long. And on top of that, IF it works out with this other house we have to spend at least 2-3 months working on it before we can move in, so that will REALLY leave us in a tight spot, homeless for an extended period of time.

So, tell me if you think we’re crazy – I think we’ve decided to just turn down the offer and take the house off the market. We figured we aren’t DESPERATE to sell because nothing is lined up with the other house yet, and we need some time to do the renovations, so there’s no reason to sell less than what we’re comfortable selling at right now. We have the luxury of buying this other house cash with the inheritance, and the whole point in doing that was to give us the padding we needed so we wouldn’t have to sell this house out of desperation, and give us the time to do the renovations while living in our current house.

So, we wait. If all works out, we’ll close on this other house by next summer, and we can use that address to send Alex to kindergarten in that neighborhood, while we still LIVE in this house and do the renovations on that house, taking our time. And, by the time we are ready to move into the other house, maybe the market will pick up a little, and we can sell a little closer to $375/$385 on this house so we don’t take a loss.

I don’t think we’ll ever have a problem finding a buyer. The house shows well and we’ve gotten A LOT of interest – over 50 showings and the comments are all the same – house shows really, really well. If we turn down this offer, I have no doubt another one will come down the road. Maybe not immediately, but it’s ok, because we’re buying the other house cash so it won’t be such a strain to carry both houses.

What do you think? Are we crazy? What would you do?

Re: Are we making the right decision?

i definitely think you're doing the right thing

Re: Are we making the right decision?

Re: Are we making the right decision?

As soon as you mentioned you were buying a foreclosure I wanted to say that you should wait, so I definitely think you're doing the right thing!!

Re: Are we making the right decision?

i would wait - moving twice is expensive also and very trying - also livign without a lot is hard too which happens when you live some place temporaily - i would take it off and try to grab the early spring market

Re: Are we making the right decision?

Turn down the offer, you're doing the right thing.

Re: Are we making the right decision?

totally doing the right thing!!!

Re: Are we making the right decision?

you are going the right thing.

Re: Are we making the right decision?

Re: Are we making the right decision?

100% the right thing. you can't afford to take the 340K, and you have a lot of time to sell.

Re: Are we making the right decision?

We would do the exact same thing. You will find a buyer and chances are more in the range you are looking for. If this was a crazy bid over asking or something then it would be different.

Re: Are we making the right decision?

I actually would consider taking the offer. It really depends on what the comps are going for.

You have to realize that your monthly bills paying rent will be way less than what you pay for a mortgage. So you will be saving money every month. Living in a rental with two kids is really not THAT big a deal. Many people do it.

While your house shows well, if the comps don't live up to your ask of 375+, you aren't going to get that.

Re: Are we making the right decision?

Re: Are we making the right decision?

why is buying the foreclosure going to take a year?

unless it's a short sale - buying a bank owned house cash is normally one of the fastest real estate transactions- they close in 30 days or less

Re: Are we making the right decision?

100% you're doing the right thing.

Re: Are we making the right decision?

I'd turn down the offer or counter at a price closer to what you want/your asking price. I don't see why you couldn't leave it on the market for that matter and wait until you get the price you want. If you get your 385K or closer then it would make sense to move to an apartment for the interum.

but at the end of the day YOU need to do comfortable doing what you need to do.

GOOD LUCK!

Re: Are we making the right decision?

You are def doing the right thing!!!! I am about to close on my 1st home and I am paying more for my house than the offer you are considering. I would of paid what you are asking for your house!!! Considering that you are buying a foreclosure, I think your time plan works out great. If I were you I would hold my ground too. GL!!!!!

Re: Are we making the right decision?

Why not go back for a counter offer, sometimes people counter several times before they make an agreement...

Re: Are we making the right decision?

Without a doubt in my mind- turn down that offer!

Re: Are we making the right decision?

Re: Are we making the right decision?

What are the comps in your area?

If the offer is in line with the market, you might not get what you "need" to break it even. And considering that, I would either stay where I am until the market goes up or take the offer to get out of this house to got into another house. You will save if you rent an apt.

But I would not buy another house thinking you can sell the one you already have.

We have seen too many shows on TV on how that usually ends up.