First Time Seller, Then Buyer - Can you explain the process like I'm five? (agents, sale)
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I'm thinking more in terms of the in between me selling and buying. If I sell my house tomorrow, for instance, I'm pretty much under the gun to find a new place (that I actually enjoy and want). That is the part I'm nervous about, particularly in this market where there aren't a whole lot of options out there, particularly in my price range (sub-$350k). I feel like once my place sells, I'm going to be rushed to find a new place unless I just opt to live in an apartment month-to-month and browse until I find something I really want.
Your broker needs to set you up on a search asap - closing and possession are usually the same day - but there is an option for the seller to stay after closing. A Post Closing Occupancy agreement is for 30 days or less.
There is AirBnb, short term fully furnished "hotels". Plus, not many landlords will do anything less than a year for a lease.
Your agent will (or should) tell you that you need to talk with a tax consultant about that, not your agent.
With a market as hot as yours, I'd start looking now. Once you have a contract on your house, you might be able to find a seller who will take a home sale contingency. That means you agree to purchase the new home contingent on the sale of your current one. You might also get lucky and be able to swing a simultaneous closing but that is tough. Not too soon to talk to a lender, too, if you need one.
Last edited by bbronston; 12-01-2016 at 05:19 PM..
Your agent will (or should) tell you that you need to talk with a tax consultant about that, not your agent.
Based on what I'm reading, it seems pretty clear cut. Post 1997, you need to live somewhere for at least 2 years of the five years after your bought it to qualify for a capital gains tax exemption for up to $250k profit (if you're a Single tax filer).
It seems that if I don't want to pay taxes on the sale of my house, I need to live there for at least another eight months. Obviously, something I need to talk to my realtor about since he has my house up for sale.
About a year and a half ago, I was a first time buyer and my realtor was very good walking me through the process step-by-step. Though stressful, he was pretty much always there to advise.
Today, I'm a first time Seller, then Buyer, and this process seems to be slightly more stressful because of the uncertainty of finding an ideal new place after my current home sells. My realtor is also being a little more hands-off this time around.
Can any of you who are more experienced in this area walk me through what happens during this process? The house just went on the market today. What can I expect from here on out? Please, no horror stories. Just ideally what is supposed to happen.
Hey, since your realtor walked you through the process of buying step-by-step, hows about you share that with the rest of the forum so that we also benefit, like a little give and take?
Examples of questions I have:
Everyone always says you need a 20% down payment. So does everyone literally just collect $60,000 or $100,000 or whatever and then go look for a house?
Let's say the answer is yes. Then do you collect this large sum of money in your checking account and then go out and apply for a mortgage while it's just sort of sitting around?
What's the best way to find a good mortgage? Do you just have to run around to every bank and national lender and apply to 50 people to compare?
Do you only go out house shopping after you've secured this mortgage and have this gigantic sum of money laying around doing nothing? Because then it might take you like a year to find a house and meanwhile you're just sitting around with a gigantic sum of money laying around doing nothing.
Everyone always says you need a 20% down payment. So does everyone literally just collect $60,000 or $100,000 or whatever and then go look for a house?
Let's say the answer is yes. Then do you collect this large sum of money in your checking account and then go out and apply for a mortgage while it's just sort of sitting around?
What's the best way to find a good mortgage? Do you just have to run around to every bank and national lender and apply to 50 people to compare?
Do you only go out house shopping after you've secured this mortgage and have this gigantic sum of money laying around doing nothing? Because then it might take you like a year to find a house and meanwhile you're just sitting around with a gigantic sum of money laying around doing nothing.
1. There are varying down loan programs out there from 0 down VA loans to 3.5% FHA loans to 3 to 20% down conventional loans.
2. Referrals from friends or your agent.
3. House shopping usually starts online these days.
4. Unless you are very very picky, house hunting takes 90 days or less once you are approved for your loan.
20% for the down plus a living expense reserve and money for closing makes you a strong buyer.
Having financing in line needing only a appraisal is golden unless you are competing with a all cash as-is offer.
My Credit Union is very good when it comes to Mortgage Loans... rates are very good, borrowers have a relationship already and everything is handled on a local level.
Can't say enough good things about it especially when compared to MY online lender experiences... post quite a bit a few years back about a nightmare rate refi with a pay down by me...
The people I dealt with were clueless about SF Bay Area Real Estate... suggested I was underwater... impossible... the credit union appraisal came in well in excess and 90k higher than the online lender.
I realize it must work for some but this has not been my experience.
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