Bad timing

[Doctor Phibes]

@Horace said in Bad timing:

I'm very pleased with what we were able to get out of this place. Almost the entire COVID era housing bubble bump. Though when you look at the zillow estimate chart, it's just linear if you remove short term spikes during COVID. Same can't be said for where we're buying...

Congratulations, Horace. Ours goes on the market the end of next week...more frighteningly, we're expected to close on the new one in 4 weeks time, so I'm likely to end up owning two houses for a hopefully very short period of time. I try not to lie awake at 5am thinking about this.

[Horace]

@Jolly said in Bad timing:

At least Horace should be down in time for hurricane season.

I'm looking forward to rain storms... we'll have a big back patio and a big pond back there that I think will be beautiful during the rain.

[Aqua Letifer]

@Jolly said in Bad timing:

@Aqua-Letifer said in Bad timing:

@Horace said in Bad timing:

@Jolly said in Bad timing:

I think it will all work out.

And now, a bright note...You'll be moved just in time for...Wait for it...

https://www.texrenfest.com

I do like the ladies’ attire at those.

Texas Renn Fest is no damn joke. It's Burning Man with a theme. Crazy shit goes on there.

Cover your drinks.

It's not quite that bad...

Go as cast or a boothie and we'll compare notes.

[Horace]

@Doctor-Phibes said in Bad timing:

@Horace said in Bad timing:

I'm very pleased with what we were able to get out of this place. Almost the entire COVID era housing bubble bump. Though when you look at the zillow estimate chart, it's just linear if you remove short term spikes during COVID. Same can't be said for where we're buying...

Congratulations, Horace. Ours goes on the market the end of next week...more frighteningly, we're expected to close on the new one in 4 weeks time, so I'm likely to end up owning two houses for a hopefully very short period of time. I try not to lie awake at 5am thinking about this.

Good luck! I think it's good to get on the market asap. But a crash is not imminent. Stay away from youtube videos about the real estate market, btw.

[George K]

@Doctor-Phibes said in Bad timing:

end up owning two houses for a hopefully very short period of time

I did that...twice.

The second time I ended up renting the place for just enough to cover taxes, etc.

No joy. None whatsoever.

Good luck, @Doctor-Phibes

[89th]

Congrats @Horace, my realtor had the same signature in her email too. Perhaps it’s semantics, but usually when you both sign the closing papers, the property is officially transferred to the new owner unless you had a rent-back in the contract. Anyway, time to buy that Apple Air Tag.

@Doctor-Phibes exciting, and best of luck. Yes market timing isn’t the best compared to 6 months ago but compare it to 6 years ago or even 10 years ago…I’m sure you’re home value is up. You should move to Minnesota btw. Horace too.

[George K]

@89th said in Bad timing:

Perhaps it’s semantics, but usually when you both sign the closing papers, the property is officially transferred to the new owner

Just for the sake of clarity, it's "closing papers" not acceptance of the contract.

Big, big difference.

So, what's the timeline for the move?

[Jolly]

@Horace said in Bad timing:

@Jolly said in Bad timing:

At least Horace should be down in time for hurricane season.

I'm looking forward to rain storms... we'll have a big back patio and a big pond back there that I think will be beautiful during the rain.

You'd have been ecstatic over the last week or so.

[Horace]

@George-K said in Bad timing:

@89th said in Bad timing:

Perhaps it’s semantics, but usually when you both sign the closing papers, the property is officially transferred to the new owner

Just for the sake of clarity, it's "closing papers" not acceptance of the contract.

Big, big difference.

So, what's the timeline for the move?

We are planning on getting everything packed into UPack ReloCubes on Thursday, and leaving Friday morning. Will travel over the labor day weekend, with two overnight stays at airbnbs on the way. Then a one month stay at an airbnb in Houston. Our new home should be ready to close in early october, but we'll be looking for other places to buy before then. We think we might be able to get a price reduction on the one we're under contract for, but that's only realistic if we have a place we are serious about as an alternative. I really like the home we've chosen, but we think a new buyer would be able to get it cheaper. We signed for it at the tippy top of the market, in june.

[Doctor Phibes]

@Horace said in Bad timing:

@Doctor-Phibes said in Bad timing:

@Horace said in Bad timing:

I'm very pleased with what we were able to get out of this place. Almost the entire COVID era housing bubble bump. Though when you look at the zillow estimate chart, it's just linear if you remove short term spikes during COVID. Same can't be said for where we're buying...

Congratulations, Horace. Ours goes on the market the end of next week...more frighteningly, we're expected to close on the new one in 4 weeks time, so I'm likely to end up owning two houses for a hopefully very short period of time. I try not to lie awake at 5am thinking about this.

Good luck! I think it's good to get on the market asap. But a crash is not imminent. Stay away from youtube videos about the real estate market, btw.

Thanks - we should be fine as long as it doesn't crash - we've got some money put by for the short term pain, and the market's still pretty decent here.

I'm swapping a 20 minute commute 5 times a week for a 1 hour commute 3 times a week, and almost double the square footage. If everything plays out, we'll be pretty much mortgage free at the end of it.

[Doctor Phibes]

@89th said in Bad timing:

You should move to Minnesota btw. Horace too.

We considered going back to Canada, which is almost the same thing, but I need to stay here for the work. We still might go back up north at some point. I really loved it there.

[Jolly]

@Doctor-Phibes said in Bad timing:

@Horace said in Bad timing:

@Doctor-Phibes said in Bad timing:

@Horace said in Bad timing:

I'm very pleased with what we were able to get out of this place. Almost the entire COVID era housing bubble bump. Though when you look at the zillow estimate chart, it's just linear if you remove short term spikes during COVID. Same can't be said for where we're buying...

Congratulations, Horace. Ours goes on the market the end of next week...more frighteningly, we're expected to close on the new one in 4 weeks time, so I'm likely to end up owning two houses for a hopefully very short period of time. I try not to lie awake at 5am thinking about this.

Good luck! I think it's good to get on the market asap. But a crash is not imminent. Stay away from youtube videos about the real estate market, btw.

Thanks - we should be fine as long as it doesn't crash - we've got some money put by for the short term pain, and the market's still pretty decent here.

I'm swapping a 20 minute commute 5 times a week for a 1 hour commute 3 times a week, and almost double the square footage. If everything plays out, we'll be pretty much mortgage free at the end of it.

Mortgage free is good.

[kluurs]

Fingers crossed. I look forward to your finding new digs. The adventure begins.

[Horace]

Buyer and seller have signed the documents now. All that's left is for the loan to fund, and for the buyer to wire her money. Closing scheduled for Friday, which is 18 days after we accepted the offer. We will be on the road at the time.

We got some surprise news from our new home's builder. They had been telling us we are looking at a November completion and closing date, but suddenly they will be done in three weeks, with a close set for five weeks from now. That's not great for us. The market is going down, and will continue to go down. More time would have played to our favor. We suspect we would take an immediate 10% depreciation hit if we were to close at the price we agreed to in June. That's several multiples of our earnest money. We will be looking at alternative properties when we get to TX, and it would be optimal if we find one we really like. But if we don't, it looks like we'll sacrifice this current deal and rent in Houston till we find a place. We believe it will be an increasingly buyer's market going into 2023. It already is way more of a buyer's market than it was earlier in the year and all of 2021. It will sting to lose our earnest money on this current place, and we really like it, so that will sting as well. But I can't be buying a property at 10% more than market value.

[jon-nyc]

@Horace said in Bad timing:

Buyer and seller have signed the documents now. All that's left is for the loan to fund, and for the buyer to wire her money. Closing scheduled for Friday, which is 18 days after we accepted the offer. We will be on the road at the time.

But I can't be buying a property at 10% more than market value.

Can’t you make it up in volume?

Seriously though good call. You know the builder rushed everything too, for the same reason. Who knows what corners were cut.

[Mik]

Yeah, that's what I was going to say too - the builder may have slapped it together to get it sold before prices dropped more. That might not be the case, but the dropping price is a hazard for you.

[Horace]

In fairness, the November date was pushed back from the original date which was in fact September/October. They pushed it back to November because electricity had not been run to the neighborhood yet, and that was out of their hands. Apparently they power company hooked it up last week. So the home is back on the original schedule. But I think it’s a good point that whatever they are doing now, will be done in a hurry.

[89th]

@Horace As clearly I am your consigliere, you know my thoughts. I value the house/location more than the financial impact, unless it really impacts your wallet. That being said, I can't recall but are you taking a mortgage and (if so) do you already have a rate locked in? I'd be curious what a rate now would look like if you found an alternate (and even better) property.

[Horace]

@89th said in Bad timing:

@Horace As clearly I am your consigliere, you know my thoughts. I value the house/location more than the financial impact, unless it really impacts your wallet. That being said, I can't recall but are you taking a mortgage and (if so) do you already have a rate locked in? I'd be curious what a rate now would look like if you found an alternate (and even better) property.

I still haven't settled on any plan. With a mortgage, I'd go into it assuming I could refinance at a better rate within three years. So the interest rate isn't a huge concern.

As for the home, while we like this one, it's a home in a master planned community. That means lots and lots of comparables. There are only so many waterfront locations in these places, and it would be a risk to give this one up, but eventually we'd find another that I believe we'd like as much. But it's a risk definitely.

I suspect the builder will negotiate even if our only leverage is to force them to keep our earnest money and try to sell it to someone else in this declining market. I've been following the builder's website and they have six properties available in that neighborhood, literally a block away from our homesite. Those houses will be completed at about the same time ours will, and they have not gone under contract in the past six weeks. There is no market at their list prices. When they are complete, the builder is going to be very motivated to get rid of them. I know they are hoping against hope that I go forward with this deal. Which I won't. I do feel bad about not telling our sales rep that right now, but our buying agent wants to look at other properties first. I know that would give us even better leverage.

[89th]

@Horace That makes sense. Congrats on the progress of your previous property closing... good luck here. Feel free to send us your exact address when you find a new place so we can SWAT send a welcome gift.