Kind of. We are going to talk to the mortgage broker this weekend to get things lined out. It takes DH awhile to make decisions, but he has been talking about one house non-stop since we went to see it a week ago. The builder has had it for over a year. He has 10 houses in that neighborhood that have been finished over the last year, but just not sold because that area is so saturated with new homes. The fliers all say he is accepting trades, so that's a good sign. Once we get financing in order then we can go make our offer. We took FIL with us to look at it, and he thinks it would be a good option for us. Decent construction, great area, good setup for us.
WWBG - that's pretty much the offer we are going for - have the builder take our house for what we owe on it, and we get his new house. So really, the hit he's taking on the price really comes when he sells our house. But we will be able to close quickly that way. And from talking to those who have done trades before, the builder will get his realtor to sell our house as quickly as possible, so its not like he's going to carry it long. Just dump & run. But this kind of thing works best when you are trying to trade up. Its easier for the builder to take the smaller hit on the cheaper house and still get what he's wanting from the more expensive one.
Asking is more than $200k. But a builder has a bigger margin to work with usually, especially after sitting on it for a year.
I was told a couple weeks ago that my position had been eliminated in a corporate reorg. No layoffs, just shuffling around. I ended up with a better spot than where I had been. DH also closed a case he's been working on for the last 6 months, so that's good news too Pretty good week around here. Still not making a move on a house just yet though. Going to wait out the summer I think to see where our jobs shake out. Still room for things to change again.
Sam, just food for thought...if all your cards line up right now (Builder will take trade, financing works , price is right, etc) you might not want to wait tooooo long. When new construction projects stall, the builder could find another investor, have a fire auction or if they're deliquent with the bank, the bank can seize the properties. They're already looking for an out if they're advertising for trades. If you're holding off for financial/job reasons, that's one thing but if it's just to try to get the most rock-bottom price, you don't want to lose the opportunity to trade your current house since that's likely to be the sticking point when you go to buy/sell. Don't rush the decision but keep your eyes on the builder and that development.
I'd second the "get creative" and "consider all options" sentiments that have been expressed here. When violence from persons unknown is reaching into your home, it's time to pull out the stops.
It sounds like your sister is facing an almost identical threat. Spending a lot of time with each other or even entering into a formal agreement that entailed neither of you ever leaving the other alone in your respective houses might be an option. Heck, combining households might even be an options worth considering.
It's much easier and safer to move items out of the house without a child in tow. Doing so now will make a future sale or abandonment much, much smoother and may reduce the possibility of a break-in if theft is the motive.
Post by Anne_in_VA on May 16, 2011 15:06:52 GMT -5
Sam - sorry you're having to live in that environment. I would be asking a management company about what my house would rent for as one other poster mentioned. If you could rent it out for what your mortgage payment is then you could buy the new house at a steeply discounted price (if the builder is willing to take trades, he wants to get out from under those houses) with very little negative cash flow. I certainly wouldn't offer what he is asking for the new house since it's been sitting on the market for a year or more.
The trade may work for you, but I wouldn't wait too long to make the move.