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There are plenty of sites that list homes that are up for rent-to-own. (I'm not going to post links here to avoid being considered solicitation, but they are easy to find.)
It's very likely, IMO, that these houses are already rental properties and the owner wants to dump them so he offers prospective tenants an option to rent the house and then apply a portion of the rent to the purchase price. Typically, this is a deal offered by owners of rental property to sell it for more than market value to someone who has little to no money for a down payment and closing costs. It also could be attractive to some people who want to buy but have a bad credit rating. The owners of MOST houses that you see for sale would not be a bit interested in this situation.
OP~ Have you considered the property tax/insurance ramifications of this move? (I don't know if it's a savings or add'l cost for you.) This could make a difference in the future. Just another factor that is rarely mentioned in these wishes.
OP~ Have you considered the property tax/insurance ramifications of this move? (I don't know if it's a savings or add'l cost for you.) This could make a difference in the future. Just another factor that is rarely mentioned in these wishes.
Yes, the future state is half of the taxes and maybe little more on insurance due to the age of the home. As for the current home, I shouldn't have to pay anything if I sell prior to December?
Yes, the future state is half of the taxes and maybe little more on insurance due to the age of the home. As for the current home, I shouldn't have to pay anything if I sell prior to December?
Property taxes are typically prorated for how long you own the property in that tax year. For example, if you own the property 10 months of the tax year, then you'll be responsible for paying 10/12 (83%) of the property taxes for that year. This is true even if the taxes aren't payable yet. They will be prorated in the closing statement.
The most conservative method is to sell first and then buy. Too many things can happen. JMHO.
When I downsize in 10-15 years, depending on the housing market I plan to rent, sell, buy, move. I plan to rent to lessen the stress. I plan to downsize after retirement. If nothing makes sense I will just stay put though.
Property taxes are typically prorated for how long you own the property in that tax year. For example, if you own the property 10 months of the tax year, then you'll be responsible for paying 10/12 (83%) of the property taxes for that year. This is true even if the taxes aren't payable yet. They will be prorated in the closing statement.
The trouble with buying the new house before selling the old one is that you probably can't pay for both houses indefinitely. If I'm wrong about that, never mind. But once you "light the fuse" so to speak, you may put yourself in a position where you become a more and more "motivated seller" of your previous shack.
Of course if you sell the existing home before making an offer on the one you want to move into, you do have some risk of having no place to live for awhile. You could end up with your stuff in storage and you living in a week-to-week motel (I have stayed in such, not between houses but just for work. The better ones are not at all bad.)
Pick the risk you can best mitigate and are least unwilling to live with the downsides if things go sideways.
I got comps checked with 2 different local realtors. Its priced accurately, the only problem is a new phase of homes building right behind us with prices 30k more but my lot is premium with prime location (premium corner lot, curb appeal, highway access, walking distance to park, mailboxes etc)
If I could buy a new construction for 30k more than a pre-owned house in that 800k range, it would be a no-brainer. Your assessment of the increased value due to location and such is out of mesh with prospective buyers.You have significantly narrowed the field of buyers to somebody who feels that a corner lot and closer to the mailbox is of any value (especially when weighed against any wear and tear / depreciation that may exist on your home. The Zillow estimates bounce all over the place.
Personally, I would drop the price and get something going. If you buy another house, you could end up with a double mortgage. If this real estate market drops, you could get wiped out. I suspect that you are enamored with the concept of selling and relocating and becoming mortgage free. I would not buy another house until you can afford it on your terms.
The RE market is not like the stock market. By the time you realize it the top was six months ago. You will end up chasing your tail. People sold a couple doors down. I asked them are you staying in the area and downsizing. Answer Yes. Six weeks later I talk to their neighbor and Wayne and Jane ended up moving to Idaho; they ran out of time and had friends in Idaho and blah blah blah. They sold thinking they were going to cash out and ended out with nowhere to live. Maybe this Idaho thing will work out for them This was a six week thing and Idaho was not even part of the plan (read they got desperate).
House worth $800k on zillow with $180k left. Looking to buy a house within range of $650k. Have only about 40k cash total. Yes would qualify for second mortgage with 5% down according to lender and credit is 820+
Your location says North Jersey to North Texas.
Is the house you're trying to selling in New Jersey? If NJ, what County or town if you're willing to say?
Are you buying in Texas? How is the market there?
I'm going to give you the advice that my hub and I did. We sold, closed first week of June, we are renting at least for a year because even our market in Gloucester County NJ which was very hot, has cooled some due to so many people listing in April, May and June, with houses on the market longer for the ones priced right, showing well. I would have expected yours to have had bites by now if it was priced right.
If you really want out, lower that price before it totally cools, sliding down to where you're house will depreciate in price.
We got close to $100k over asking on the first day. We had almost a week of showings before the contracts were fully signed, we also had 2 backup offers each for a little less than the ones at the top.
We bought in 2008, right before the market crashed. We were left with losing $100k had we sold before now due to prices tanking. We would have had to bring a lot of money to the table, so we some how hung on to the house almost 10 years longer than we originally planned. We sold for more than we bought it brand new because my development was very desirable. The builder has been gone 10 years.
We're waiting a year or so to see what the market does. We weren't willing to lose $100k or more buying now.
Look at your buying area on Zillow. See what houses for sale were bought before COVID. For us, most were bought for $150k, selling close to or at $300k, doubling it, then you have to offer 15% over list in order to be one of the lucky ones to have your offer accepted. We were not willing to be house poor again.
Prices may go back up in NJ depending on where the home is, if land locked. My town will have a bunch of brand new town house and single family homes coming to market soon that will be cheaper than what my house sold for.
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