U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 07-15-2008, 08:04 AM
 
236 posts, read 730,949 times
Reputation: 139

Advertisements

nah, we're not worried about losing $7595. not anymore.
our realtor is working out a deal with the builder of the new home....where they'll put a delay on starting construction. so that should give us more time under the contingency. plus (crossing fingers) if we sell, say in 60 days, we'll move into an apt for 4-6 months (while construction of the new home is taking place). that would save us about $800/month (in an apt).

800 x 4 (mnths) = 3200 savings
800 x 6 (mnths) = 4800 savings

so we'll recoop some of money we lose in the sell...
our realtor is also working out some other "behind the scenes" things...for maybe some more free upgrade money.

so if we're blessed, it'll all balance out...we'll get what we want, shea will get a sell, the realtor will get her comission, etc....life is good for everyone
(of course, this is the perfect scenario...but i only wish for the best for myself, so...)
Reply With Quote Quick reply to this message

 
Old 07-15-2008, 08:06 AM
 
236 posts, read 730,949 times
Reputation: 139
oh yeah....i've already considered the other fees associated...thats where the 185k number comes from.
Reply With Quote Quick reply to this message
 
Old 07-15-2008, 08:07 AM
 
Location: State of Being
35,885 posts, read 67,009,663 times
Reputation: 22370
Quote:
Originally Posted by stephen424 View Post
nah, we're not worried about losing $7595. not anymore.
our realtor is working out a deal with the builder of the new home....where they'll put a delay on starting construction. so that should give us more time under the contingency. plus (crossing fingers) if we sell, say in 60 days, we'll move into an apt for 4-6 months (while construction of the new home is taking place). that would save us about $800/month (in an apt).

800 x 4 (mnths) = 3200 savings
800 x 6 (mnths) = 4800 savings

so we'll recoop some of money we lose in the sell...
our realtor is also working out some other "behind the scenes" things...for maybe some more free upgrade money.

so if we're blessed, it'll all balance out...we'll get what we want, shea will get a sell, the realtor will get her comission, etc....life is good for everyone
(of course, this is the perfect scenario...but i only wish for the best for myself, so...)
Sounds like you have a strategy and as long as you are satisfied w/ it - then really - isn't that what life is all about? It really doesn't matter if that is what the rest of us would do - or feel comfortable doing - as long as you are comfortable w/ it and it reaches your family's goals . . . then so be it. I hope it all works out for you, Stephen.
Reply With Quote Quick reply to this message
 
Old 07-15-2008, 08:43 AM
 
Location: Lake Wylie, SC
622 posts, read 1,583,805 times
Reputation: 475
Default Roi

As you seem to be looking at everything as an investment decision, you have to look at it as a return on investment (just as one would look at a stock investment). My best take on the scenario (selling my existing home {stock A} and investing in a new home {stock B}).

Gross profit on Stock A: $4,000 (189K sales price less 185K payofff)

Down payment for stock A: $0 (100% loan 80/20)

Maintenance fees:
Brokerage charges: $1850 (origination fees on loan)
Carrying charges: $11,340 (interest paid for one year @ 6%)

This will give you a net loss of $13,190 carrying the stock for one year.

Now you want to sell stock A and invest in Stock B.

Selling Expenses:
Brokerage fee: $9,450 (189K @ 5%)
Buyer incentive $3,000 (buyer closing costs paid by seller)
Misc. fees $1,500 (deed stamps, prepaid taxes, etc.)

Gross Cost of holding and selling stock A: $23,140

Cost to buy Stock B:
Brokerace charges: $3,360 (loan origination fee on 336K)
Misc. fees: $2,000 (legal fees etc.)

Gross Cost of buying Stock B: $5,360

You will give you a negative ROI of $28,500 on this transaction.

What if your new investment doesn't appreciate for the first 3 years?
This will add an additional cost of approximately 60K to the investment (interest @ 6% on the purchase of stock B).

The good news is that you can live in your investment.
Reply With Quote Quick reply to this message
 
Old 07-15-2008, 09:02 AM
 
236 posts, read 730,949 times
Reputation: 139
Belmarin....

I have no idea what you just said....but thanks, i guess.
Where'd you get the 336k (loan origination fee on 336k) from..?

don't answer that, you'll just confuse me more
Reply With Quote Quick reply to this message
 
Old 07-15-2008, 09:13 AM
 
Location: Lake Wylie, SC
622 posts, read 1,583,805 times
Reputation: 475
Quote:
Originally Posted by stephen424 View Post
Belmarin....

I have no idea what you just said....but thanks, i guess.
Where'd you get the 336k (loan origination fee on 336k) from..?

don't answer that, you'll just confuse me more
I'm sure the lender is either charging a 1% loan origination fee. If it does not appear obvious as an origination fee, it is usually bundled in with the misc. fees the lender is charging.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > North Carolina > Charlotte
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 07:34 PM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top