mommyoffive Posted July 23, 2016 Share Posted July 23, 2016 Logistically? Did you live in your house and sell it, and then buy another one? Did you have to move out to list it? Did you build another house? We want to move in the next year or so, but the logistics of this keep me up at night. This is our first house so we haven't crossed this bridge yet. Quote Link to comment Share on other sites More sharing options...
Janeway Posted July 23, 2016 Share Posted July 23, 2016 In our case, we had a financial incentive that paid for a period of time. As a result, we were able to buy the new one, move, and then sell the old one. This was good as my children are messy. We want to do this again eventually. Likely, I will pack up everything possible and put in to storage and then list the house. Quote Link to comment Share on other sites More sharing options...
mommyoffive Posted July 23, 2016 Author Share Posted July 23, 2016 How do loans work in this case? Quote Link to comment Share on other sites More sharing options...
mellifera33 Posted July 23, 2016 Share Posted July 23, 2016 We will be doing this in the next year or so, so I'm subbing. I can't fathom how this works. Quote Link to comment Share on other sites More sharing options...
carriede Posted July 23, 2016 Share Posted July 23, 2016 This is the main reason we haven't moved yet. We NEED the equity from this house to help pay for a new (bigger and more $$) house. I have no clue how to manage this. Quote Link to comment Share on other sites More sharing options...
FriedClams Posted July 23, 2016 Share Posted July 23, 2016 Here's our plan... Get a cheap rental in the new area. Move out of House A. Put on the market. When House A sells, buy (or in our case) start to build House B. I can't live in a house on the market. I just can't. Ours needs new carpet, painting, etc. and it's beyond me to do that and homeschool and deal with DH's schedule and... I just can't. 2 Quote Link to comment Share on other sites More sharing options...
mommyoffive Posted July 23, 2016 Author Share Posted July 23, 2016 Here's our plan... Get a cheap rental in the new area. Move out of House A. Put on the market. When House A sells, buy (or in our case) start to build House B. I can't live in a house on the market. I just can't. Ours needs new carpet, painting, etc. and it's beyond me to do that and homeschool and deal with DH's schedule and... I just can't. Me too. Ours needs work done too. A family of 7 puts a lot of wear on stuff. I was thinking a rental or a vacation. Ha. We might be able to swing 2 loans at one time. I know it is kind of dangerous. It depends how fancy we make the new house. 1 Quote Link to comment Share on other sites More sharing options...
AnnE-girl Posted July 23, 2016 Share Posted July 23, 2016 We put an offer on the house we liked that was contingent on selling our house the week before our house went on the market. It was a foreclosure, so the bank didn't accept our offer until we had a contract on our house. Everything worked out and about six weeks later, we closed on our sale in the morning and our purchase in the afternoon of a very long day. 1 Quote Link to comment Share on other sites More sharing options...
Tita Gidge Posted July 23, 2016 Share Posted July 23, 2016 We have a large family so we've always taken advantage of that. We've listed the house (staged) and do our primary living at the relative's home - that's all sleeping and cooking and schooling. We still stop by the house-for-sale daily to check in and get it ready for any showings (a/c on, lights on, toilets flushed!) Barring that, I would have budgeted the cost of an apartment - ideally a short-term lease (3 months), but a longer one (6-12 months) if necessary. My ex-husband refused to do this a few years ago when he was moving. He kept insisting it was a waste of money. But then he lost two potential sales - the first, because the house he was buying fell through due to a contingency on those sellers' end; the second, because he couldn't find a house he liked in time to meet his buyers' contingency. So he finally relented and found a 3 month lease. He sold his home without any contingencies on his part, and a month later found the perfect house for himself to buy - also without contingencies on his part. He was unfortunately stuck with a two month lease on the apartment but ... whatever LOL. I found him a family to sublet it to for one of those months and he ended up only one month in the hole on the deal ... but with one home sold and one home bought. But lots of people manage to put contingencies on their sales without much issue. I just don't like the stress of that so it's worthwhile to me to avoid it at all costs. The last house I bought I got for a steal. The sellers were desperate because just like my ex-husband, they had lost several homes while waiting to sell theirs - the timing was just always off for them! They contacted me seven months after our first interaction to offer me their home at my original offer (the one I used as a starting point. I would have gone up another $20K but they weren't willing to negotiate at all after my initial offer.) Quote Link to comment Share on other sites More sharing options...
Spryte Posted July 23, 2016 Share Posted July 23, 2016 We bought the next house, undecided on if we'd use the old house for a rental or sell it. Our lender approached it as if we'd be renting it, though he knew we were undecided. We moved into the new house, and once the old house was empty and ready to be listed either for rent or sale... I just couldn't stand the thought of keeping it for a rental. I just wanted to Be. Done. with that house. It was beautiful. But I didn't want to deal with it. So at the last minute, we put it on the market and sold it. In retrospect, it worked out perfectly. No living in it while it was on the market. If we were to go a different route next time, I'd plan on staying in a small apartment or with family while the house is on the market. I could never stage it and live in it while on the market and stay sane. :) 1 Quote Link to comment Share on other sites More sharing options...
catz Posted July 23, 2016 Share Posted July 23, 2016 (edited) Last time we moved, we sold our house and were buying at the same time. We scheduled the 2 closings within 48 hours of each other. Hindsight, that was really lucky we had that as an option. It was a seller's market, so I was actually more worried about finding and buying a house than I was about selling. We bid on several homes before we got one. And we sold by owner with an real estate agent that charged a flat fee for paperwork. Edited July 23, 2016 by WoolySocks Quote Link to comment Share on other sites More sharing options...
TranquilMind Posted July 23, 2016 Share Posted July 23, 2016 Logistically? Did you live in your house and sell it, and then buy another one? Did you have to move out to list it? Did you build another house? We want to move in the next year or so, but the logistics of this keep me up at night. This is our first house so we haven't crossed this bridge yet. We always buy, renovate, then move in, then sell the empty house when we make it as perfect as possible. Rooms look larger and it is and stays extremely clean everywhere. It's a rare family that can live there and show it to best advantage, in my opinion. Same when I have rentals. Only once have I ever shown it with an existing tenant and that was because he was so amazingly organized and uncluttered that he even color-matched his clothes in the closet. Quote Link to comment Share on other sites More sharing options...
Forget-Me-Not Posted July 23, 2016 Share Posted July 23, 2016 We put our house on the market and put a contingency offer on the next one. It was stressful though. The people buying our house had last-minute lender issues. It hung up our contingency sale, and owners of the house we were trying to buy also had a contingency offer on another house that was hung up. It went through but it was a nerve-wracking couple of weeks. Quote Link to comment Share on other sites More sharing options...
Pawz4me Posted July 23, 2016 Share Posted July 23, 2016 We just did it. We bought our new house, taking money out of savings/investments to make a down payment equal to the amount of equity we had in our current home. When we were totally moved out and had thoroughly cleaned our first house we put it on the market. We had a signed contract on it in thirteen days and only had to carry two payments for a couple of months. It was about the best case scenario we could have hoped for. We'd gone over our finances very carefully and were prepared to carry two loans for up to a year if necessary. Once the house sold we paid ourselves back from the proceeds. When we were younger and had less savings/investments we could get our hands on we did the same thing (moved then put house on the market) but used a bridge loan. 2 Quote Link to comment Share on other sites More sharing options...
StephanieZ Posted July 23, 2016 Share Posted July 23, 2016 How do loans work in this case? If you want to buy a new house before selling the old one, then you have to have the $$ for closing/moving/down payment and the income/credit so that the banks can qualify you to carry BOTH mortgages. For these reasons, most young families can't move until they sell their current house. More mature (financially) families who, say, have already paid off most (or all) of the debt on the current home and/or have incomes/cash that have grown over the years sufficiently to cover a second mortgage (theoretically) have the financial ability to buy a new home while still owning the prior home. If you can't afford to (technically) carry both homes, then you need to sell the first one before buying the new one. In that situation, your options are to sell while still remaining in the home . . . or move out into a rental (or relative's) home while selling . . . and then buy the new one. It's tricky, for sure. We've done moves all sorts of ways, but the one time we still owned our prior residence, we were still pretty poor and indebted, and my mom cosigned that time. In that case, our prior home was actually rented out (enough to cover the mortgage), but we still were way too young (financially) to qualify for the second home/mortgage without her help. (We refinanced in our own names after a year or so, once we'd sold our prior home.) Quote Link to comment Share on other sites More sharing options...
madteaparty Posted July 23, 2016 Share Posted July 23, 2016 Well, I will have the pleasure of two mortgages for the foreseeable future ;) Our current sellers are waiting until we go under contract and deposit earnest money to go under contract at their new place. Quote Link to comment Share on other sites More sharing options...
AK_Mom4 Posted July 23, 2016 Share Posted July 23, 2016 We put an offer on the house we liked that was contingent on selling our house the week before our house went on the market. It was a foreclosure, so the bank didn't accept our offer until we had a contract on our house. Everything worked out and about six weeks later, we closed on our sale in the morning and our purchase in the afternoon of a very long day. This was how we did it too. Though closing on the sale of the old house was a week before closing on the new house. We were moving across country, so we listed the old house first. Cleaned it, packed up and moved cross country. Put our stuff in storage, rented a month-to-month apartment and started house hunting. Found a house we liked and put in an offer contingent on the sale of our old one. Bank loan approved just fine with the contingent sale as part of it. Quote Link to comment Share on other sites More sharing options...
RKWAcademy Posted July 23, 2016 Share Posted July 23, 2016 We're actually doing this right now. We listed our current house. The realtor gave an estimate of 4 months to close. We then signed a contract to build a new house with a 7 month estimate to completion (fairly small payment to secure, no loan involvement other than showing "Prequalification"). Our old house closes in a week. In the interim, all of our possessions are going in storage. We're going to live in our camper at a campground. Not ideal, but we wanted to save money and couldn't find a decent rental situation for month-to-month. I don't like moving twice but it's only a short term inconvenience. Ending up with two houses at the same time would have been much worse on us. In our case, our current house was out in the country and not so easy to sell. Fortunately, we found buyers and got a good price. We did include a contingency on the building that would let us out with some money back if our old house had not sold. Talk to me after a few months in the camper with the kids. I'll probably advise never to do it my way! 2 Quote Link to comment Share on other sites More sharing options...
Mom23Boys Posted July 23, 2016 Share Posted July 23, 2016 Both times we have bought houses while owning another one, we have put our house on the market, and then looked at houses. We waited until we had a contract to make an offer on what we wanted to buy. Before we put our house one the market, we spent some time looking to see what was available in the market. We lived in the house while showing it. The first time with both a 2 and 3 year old. The second time with a 3 yo, 6 yo, and 7 yo. We were able to both buy and sell at the same time both times. The first time, we closed on selling our house in the morning and buying in the afternoon. The people buying our house closed on the sale of their house the day before. We had 2/3 days to be out of the house. Our buyers had the same with their house. The last day, we were crossing paths going and coming. It worked out fine. The second time, the house we were buying had been empty for close to a year. We knew the owners, so we were able to start moving stuff in before we closed. Worst case scenario, we would have to move back into our house. Being able to start moving in early ended up being a blessing to us, because our then 3 year old ended up inpatient at the hospital with a broken femur exactly one week before we closed on the selling of our house. He went in one Friday and we closed the next Friday. To say that was stressful is an understatement. He came home from the hospital in a spica cast. Thankfully, we were moving next door to my IL's. so we only had to move him once. We closed on our house Friday afternoon and needed to be out by Sunday. We didn't close on buying until Monday. We were able to move into the house we were buying before closing. We only did that though because the people we were buying from were long-term family friends. Otherwise, we would have had to push for a different closing date. It was difficult because our buyers were from out of state. It's really stressful, but both realtors and lenders are used to working out closing dates that work for everyone. That's usually part of the negotiations of contracts. Things can push closing dates back though, but again, realtors are used to that situation. It is possible for that to cause a sale to be lost though. Quote Link to comment Share on other sites More sharing options...
Incognito Posted July 23, 2016 Share Posted July 23, 2016 We lived in our house and moved directly once our house sold. The house we were buying was thankfully not in demand, so it all worked out well for us. Keeping the house ready all the time made me pretty much crazy (with 3 small kids and 2 dogs). I would not want to do it again if I could avoid it. So much stress. Quote Link to comment Share on other sites More sharing options...
Beth S Posted July 23, 2016 Share Posted July 23, 2016 Another option is to try to make the closing date on the new house as far in the future as you can, in hopes that you can sell the old house in the interim. But the usual answer is Bridge Loan. We may move, and we'd be in a similar boat--it's hard to know which direction to take the risk. This has been helpful to read about. Thanks. Quote Link to comment Share on other sites More sharing options...
StaceyinLA Posted July 23, 2016 Share Posted July 23, 2016 We listed the one we lived in while we looked for another. Once we had the contract on ours, and made the contract on the new one, we did the closings pretty much back to back, and we moved out of the one and the other was vacant immediately. We could have moved directly to the new one, except we were basically gutting it, so we stayed at my husband's dad's camp near the new house and lived there while we did the work. Quote Link to comment Share on other sites More sharing options...
bethben Posted July 23, 2016 Share Posted July 23, 2016 We sold our home and made the closing two months later. After we had a contract, we put a contract on the new house contingent on house #1 finalizing. We close on house #1, packed it up on the moving truck and closed on house #2 the following day after having wired the money. We've also closed on two houses within hours of each other. Sent from my iPhone using Tapatalk 1 Quote Link to comment Share on other sites More sharing options...
Guest Posted July 23, 2016 Share Posted July 23, 2016 Here's our plan... Get a cheap rental in the new area. Move out of House A. Put on the market. When House A sells, buy (or in our case) start to build House B. I can't live in a house on the market. I just can't. Ours needs new carpet, painting, etc. and it's beyond me to do that and homeschool and deal with DH's schedule and... I just can't. This is what we did. I will never ever live in a house for sale. We had our beach house for sale with minimal stuff in it, and when we were there, we took minimal stuff and we had no kids and still, every time we went for the week or whatever, there would be a showing and it was such a chore to get things spit-spot. It took away about 80% of the relaxation of going to the beach house. I could never do that in my real life house. Quote Link to comment Share on other sites More sharing options...
mommyoffive Posted July 23, 2016 Author Share Posted July 23, 2016 We're actually doing this right now. We listed our current house. The realtor gave an estimate of 4 months to close. We then signed a contract to build a new house with a 7 month estimate to completion (fairly small payment to secure, no loan involvement other than showing "Prequalification"). Our old house closes in a week. In the interim, all of our possessions are going in storage. We're going to live in our camper at a campground. Not ideal, but we wanted to save money and couldn't find a decent rental situation for month-to-month. I don't like moving twice but it's only a short term inconvenience. Ending up with two houses at the same time would have been much worse on us. In our case, our current house was out in the country and not so easy to sell. Fortunately, we found buyers and got a good price. We did include a contingency on the building that would let us out with some money back if our old house had not sold. Talk to me after a few months in the camper with the kids. I'll probably advise never to do it my way! I know it sounds hectic, but I bet it will be kind of fun too. This is off the wall idea I kind of want to do 1 Quote Link to comment Share on other sites More sharing options...
mommyoffive Posted July 23, 2016 Author Share Posted July 23, 2016 We just did it. We bought our new house, taking money out of savings/investments to make a down payment equal to the amount of equity we had in our current home. When we were totally moved out and had thoroughly cleaned our first house we put it on the market. We had a signed contract on it in thirteen days and only had to carry two payments for a couple of months. It was about the best case scenario we could have hoped for. We'd gone over our finances very carefully and were prepared to carry two loans for up to a year if necessary. Once the house sold we paid ourselves back from the proceeds. When we were younger and had less savings/investments we could get our hands on we did the same thing (moved then put house on the market) but used a bridge loan. Are there tax implications for doing it this way? Quote Link to comment Share on other sites More sharing options...
ThisIsTheDay Posted July 23, 2016 Share Posted July 23, 2016 We've had four residences, and what we've done has depended on the market at the time. #1 --> #2; during a seller's market. Put #1 up for sale at the same time we were looking for house #2 in a city an hour away. Everything worked out perfectly, we were able to coordinate closings, move from house #1 directly into #2. #2 --> #3; right before the housing market tanked. Put offer on #3 contingent upon selling #2. This was an out of state deal, so a few logistics involved. We sold #2, moved to new state, stayed in hotel for a week until we were able to finalize and close on house #3. #3 --> #4; housing market was still pretty tenuous. We found house #4, were able to rent out house #3 and get signed lease (required for loan) just in time to navigate closing on house #4. It was shaky, and we literally weren't sure until the last days if it would all go through. We moved out of house #3 hours before renters' lease went into effect. As the housing market improved, we sold house #3 three years later (closing less than four weeks from listing it). Moneywise, we ended up even at closing. Pretty much a miracle, don't know why/how God worked it out that way for us, but He did. It's tricky to navigate, and much of your personal decision will depend on your own family's circumstances (and I am not talking about financial circumstances!). Quote Link to comment Share on other sites More sharing options...
madteaparty Posted July 23, 2016 Share Posted July 23, 2016 Are there tax implications for doing it this way? Since we are doing the same (also prepared to carry two mortgages a while) the only tax implication I can think of is capital gains or losses on the investments you'd be liquidating to make the down payment... I suppose with two houses one would need to be designated primary residence, as well, for mortgage interest purposes, but I don't know. 1 Quote Link to comment Share on other sites More sharing options...
Pawz4me Posted July 23, 2016 Share Posted July 23, 2016 Are there tax implications for doing it this way? DH is the tax person in our family, but -- not that I know of. At least not in our scenario where our first house sold quickly. I would guess that things could get trickier the longer it took, especially as far as claiming a tax deduction for the mortgage interest on the first house if you weren't living in it for a long period of time. I couldn't even begin to guess about a bridge loan--it was over twenty years ago that we did that, and I don't remember any of the specifics. Quote Link to comment Share on other sites More sharing options...
Laura Corin Posted July 23, 2016 Share Posted July 23, 2016 We sold, moved, rented short term and bought. We will do the same again next time. Quote Link to comment Share on other sites More sharing options...
goldberry Posted July 23, 2016 Share Posted July 23, 2016 First time we moved to another state. We sold, lived in a trailer until we knew the area better, then bought. Second time we listed our house and shopped for a new house at the same time. By a miracle of timing and VERY good realtor, we closed on our sale and our new house on the same day. We drove the uhaul from the old house directly to the new house. That said, if one single thing had fallen through it would have been a disaster. It was extremely stressful and I don't recommend it. Quote Link to comment Share on other sites More sharing options...
nd293 Posted July 24, 2016 Share Posted July 24, 2016 We want to move in the next year or so, but the logistics of this keep me up at night. This is our first house so we haven't crossed this bridge yet. We're in the same boat. Our first house was rented out as we had moved overseas, and for the last few months we had a relative staying in it for free. It was a bit messy, relative struggling with being inconvenienced (although didn't complain to me) and another relative managing the sale and having words with the agent where I wouldn't have. This time we're doing it this way: selecting an agent (done), finding a house (in process), putting in an offer subject to sale, selling ours. I don't want to rent again and can't see how that would work out better. We'd need to take a 6 months lease, there would be moving expenses and we'd be under pressure to buy at the end of the lease or face costs for breaking the lease. It would be better for us to compromise slightly on the price we get for our house. We have done our research and have a realistic idea of what we can get for our house and how long it will take to sell. It's really stressful! Quote Link to comment Share on other sites More sharing options...
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