House on the market in June, move-out in Oct/Nov?

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psteinx
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House on the market in June, move-out in Oct/Nov?

Post by psteinx » Wed Mar 04, 2020 11:52 am

My elderly parents will be moving into an independent living unit (in the same area they currently live), when it's completed and ready for move-in, ca. October (but I wouldn't be shocked if it gets moved back to November or December). Funds from the current house are not particularly needed for the new location.

They had a real estate agent look at the house, and that agent apparently advised them to put their current house on the market in June.

The current house is a large house that would presumably have strong appeal to families (good school district), nicely landscaped.

Obviously, June is a more attractive time to market such a house than October-December. That said, original thinking had been to wait until a few weeks or so after the move to the independent living unit to put the current house on the market. That would give time for less disruptive cleaning, painting, etc., and possibly an estate sale. Also a bit of time to be sure that they've taken what they want to the new unit and so on. And of course, at that date, a buyer could move-in about as soon as they could close.

So, it's a trade-off - more attractive time window for marketing the house (both the convenience, for school* and otherwise, of a June listing, and the likely more attractive landscaping, etc.), vs. some inconvenience for my parents, plus having to show a house that's currently being lived in, plus presumably listing in such a way that a buyer couldn't take occupancy for many months, with perhaps a bit of uncertainty as to the exact timing.

* If a school aged family bought, I'm not sure what accomodation(s) could be made with the school district to avoid a mid-year switch for the kids. It's a large school district, and at least some prospective buyers might already be within the district boundaries.

(I think it's pretty unlikely that my parents would want to live in a temporary apartment or with us for 4+ months. A week or two might of that might be feasible, though).

Thoughts?

Mr. Rumples
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Re: House on the market in June, move-out in Oct/Nov?

Post by Mr. Rumples » Wed Mar 04, 2020 12:18 pm

When I sold my home in CO and moved back east, it was faster than I had expected...less than two days on the market, a cash offer and closing in three weeks. But how could I say no? I ended up living in an extend stay hotel for almost four months. Not ideal, but doable with a small kitchen, living area and bed area.

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psteinx
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Re: House on the market in June, move-out in Oct/Nov?

Post by psteinx » Wed Mar 04, 2020 12:27 pm

What I tried to caution my dad about is, is this really best for THEM (optimizing some formula of maximizing price and convenience) or best for the real estate agent (easiest, fastest sale)?

But I am not very experienced in this stuff.
Last edited by psteinx on Wed Mar 04, 2020 12:40 pm, edited 1 time in total.

Dottie57
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Re: House on the market in June, move-out in Oct/Nov?

Post by Dottie57 » Wed Mar 04, 2020 12:36 pm

psteinx wrote:
Wed Mar 04, 2020 12:27 pm
What I tried to caution my dad about is, is this really best for THEM (optimizing some formula of maximizing price and convenience) or best for the real estate agent (easiest, fastest sale). But I am not very experienced in this stuff.
June is a prime time for sales in realty. The realtor may want to get his commission during the “Prime Time” for sales. I would not push my parents to sell early. Do get their house spiffed up. Make repairs.

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Re: House on the market in June, move-out in Oct/Nov?

Post by Jack FFR1846 » Wed Mar 04, 2020 12:55 pm

You're probably looking at next May to be realistic to put it up for sale. You get the nicer season, parents are already moved and pricing for school aged families will hold. So tell the agent to "cool your jets" and wait a year.
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adamthesmythe
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Re: House on the market in June, move-out in Oct/Nov?

Post by adamthesmythe » Wed Mar 04, 2020 1:24 pm

If you're not ready to move, don't list it and don't sell it.

Houses sell all year long. I just sold one. Maybe you get a lower price selling in November, but that is balanced by the cost of keeping the house and/ or a temporary rental.

inverter
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Re: House on the market in June, move-out in Oct/Nov?

Post by inverter » Wed Mar 04, 2020 1:48 pm

You could list and insist on closing later or renting the house back (so new owners could enroll in that school district).

My parents sold their house in Aug with Feb 22 closing and Mar 1 procession. Had 15% of the price in earnest.

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jfn111
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Re: House on the market in June, move-out in Oct/Nov?

Post by jfn111 » Wed Mar 04, 2020 2:16 pm

inverter wrote:
Wed Mar 04, 2020 1:48 pm
You could list and insist on closing later or renting the house back (so new owners could enroll in that school district).

My parents sold their house in Aug with Feb 22 closing and Mar 1 procession. Had 15% of the price in earnest.
That will only work with very specific buyers. Most buyers want to be in the house before the school season starts, that's why June is a popular month with mid July or early August closings.

renue74
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Re: House on the market in June, move-out in Oct/Nov?

Post by renue74 » Wed Mar 04, 2020 2:18 pm

If you sell in the summer...people will want to move in soon.

I own an airbnb. I get folks "in between homes" all the time. Last winter, I got a family who booked for Feb-May because the house they were moving into was not ready yet.

You can find housing...just have to look a little.

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Re: House on the market in June, move-out in Oct/Nov?

Post by mervinj7 » Wed Mar 04, 2020 2:30 pm

inverter wrote:
Wed Mar 04, 2020 1:48 pm
You could list and insist on closing later or renting the house back (so new owners could enroll in that school district).

My parents sold their house in Aug with Feb 22 closing and Mar 1 procession. Had 15% of the price in earnest.
That's what we did but we were the buyers in this equation. Put an offer on a house in July, delayed the closing till Sept, and then rent back from the sellers till the following Feb. However, the sellers gave up on 5 higher offers than us that didn't agree to these terms. It's hard to say whether they would have been better off waiting till the following Feb to put it on the market since it limited their market for buyers.

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greg24
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Re: House on the market in June, move-out in Oct/Nov?

Post by greg24 » Wed Mar 04, 2020 2:44 pm

If your folks are at a stage of moving into an independent living facility, I wouldn't want to create a stressful living situation for them.

I'd wait until after they moved to put the house on the market.

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Re: House on the market in June, move-out in Oct/Nov?

Post by delamer » Wed Mar 04, 2020 5:53 pm

Jack FFR1846 wrote:
Wed Mar 04, 2020 12:55 pm
You're probably looking at next May to be realistic to put it up for sale. You get the nicer season, parents are already moved and pricing for school aged families will hold. So tell the agent to "cool your jets" and wait a year.
If money isn’t really an issue (in terms of paying for the move), then this is a definite option.

However, in my area February/March is the prime real estate sale time. So your parents may want to talk to another agent (or two) to see when the best time to sell is. But do remember that they’ll have some carrying costs for the old house until it sells.

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psteinx
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Re: House on the market in June, move-out in Oct/Nov?

Post by psteinx » Wed Mar 04, 2020 6:29 pm

My thinking is sort of:

The optimum for my PARENTS for price + convenience may be the original ~November plan. And I could even see a ~March-April, 2021 plan. I wonder if a real estate agent pushes for June 2020 because "a bird in the hand is worth two in the bush"... i.e. The agent wants the listing NOW (-ish), and a June sale should be fairly easy/quick...

That said, carrying an empty house for several months into 2021 may be tricky. Insurance costs, fallow capital, and an empty home, albeit one in a rather safe, upscale area... Also, our area bills property tax based on January 1 ownership, I think. (Not sure if the latter is customarily pro-rated such that the buyer would pay ~10 months of it, if he/she bought in March or not.)

RevFran
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Re: House on the market in June, move-out in Oct/Nov?

Post by RevFran » Wed Mar 04, 2020 7:18 pm

If June is really, significantly the best time to list (and it may not be— in my town, a university town, the best time to list is March), wait till the following June. In the grand scheme of things, carrying the house for 6 months is not that big a deal.

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mfswatz9
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Re: House on the market in June, move-out in Oct/Nov?

Post by mfswatz9 » Wed Mar 04, 2020 7:23 pm

I am in the process of getting my house ready to be on the market. I already have a condo. I would not put your parents through the stress of getting their house ready to sell sooner. It is very stressful; so much to get rid of; decisions to make on where things are going. I would wait until they are in their new place and then put it on the market.

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PalmQueen
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Re: House on the market in June, move-out in Oct/Nov?

Post by PalmQueen » Wed Mar 04, 2020 7:43 pm

mfswatz9 wrote:
Wed Mar 04, 2020 7:23 pm
I am in the process of getting my house ready to be on the market. I already have a condo. I would not put your parents through the stress of getting their house ready to sell sooner. It is very stressful; so much to get rid of; decisions to make on where things are going. I would wait until they are in their new place and then put it on the market.
+1000 - Schedule the sale however will be least stressful for your parents.

Regarding your question about timing and property taxes - they'll be pro-rated and settled up as part of the closing. When all is said and done, they'll only pay for the days they owned it.

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Watty
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Re: House on the market in June, move-out in Oct/Nov?

Post by Watty » Wed Mar 04, 2020 9:35 pm

With all the stuff going on with the Coronavirus, Elections, their health, and mortage interest rates there is no telling what the housing market will be like in the fall much less next spring. Selling sooner would help eliminate a lot of "Murphy's Law" situations. The idea of waiting until after they have moved and putting the house on the market in 2021 leaves a lot of opportunity for major changes in their local housing market.

They might want to have the house sold no later than a few weeks before the election in November.

Frankly if it was me I would probably put it on the market as soon as possible, even before June, even if it meant having to find some place to live for six months or more.

There is a LOT of weird stuff going on right now.
psteinx wrote:
Wed Mar 04, 2020 11:52 am
(I think it's pretty unlikely that my parents would want to live in a temporary apartment or with us for 4+ months. A week or two might of that might be feasible, though).
If it would fit into their budget then living in some resort type situation might be an attractive option. I have heard of people doing things like going to Florida, Hawaii or renting an RV and traveling while they are waiting for a house that is under construction to be ready to move in. If they are not up to doing something like that there might be some sort of nearby lake community where they could rent a place for a few months so it would be more like they are on a long vacation.

If the place they are moving into has multiple buildings they may even be able to stay in one of those until their new place is ready.
psteinx wrote:
Wed Mar 04, 2020 11:52 am
...plus presumably listing in such a way that a buyer couldn't take occupancy for many months, with perhaps a bit of uncertainty as to the exact timing.
There may be some limits on what is even possible.

You would want to check on it but as I recall when you get an owner occupied mortage there may be limit on how soon you need to move into the house, maybe 30 or 60 days(??). Renting back the house for a long time may not be a real option for most buyers since their lender may not allow that.

Another option would be to get the house under a contract but not actually have the closing until the fall. A problem with that is that the buyer would not be able to lock in a mortage rate until about 30 days before the close. Most buyers will want to lock in the current good rates.
Last edited by Watty on Wed Mar 04, 2020 9:46 pm, edited 2 times in total.

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Re: House on the market in June, move-out in Oct/Nov?

Post by ARoseByAnyOtherName » Wed Mar 04, 2020 9:42 pm

psteinx wrote:
Wed Mar 04, 2020 6:29 pm
My thinking is sort of:

The optimum for my PARENTS for price + convenience may be the original ~November plan. And I could even see a ~March-April, 2021 plan. I wonder if a real estate agent pushes for June 2020 because "a bird in the hand is worth two in the bush"... i.e. The agent wants the listing NOW (-ish), and a June sale should be fairly easy/quick...

That said, carrying an empty house for several months into 2021 may be tricky. Insurance costs, fallow capital, and an empty home, albeit one in a rather safe, upscale area... Also, our area bills property tax based on January 1 ownership, I think. (Not sure if the latter is customarily pro-rated such that the buyer would pay ~10 months of it, if he/she bought in March or not.)
The only reason to delay or accelerate the sale of a house to hit a particular time window is because you think you’ll make more money in (for example) June vs December.

So, why don’t you test that theory?

Look at historical sales in your neighborhood/areas for say the past 3 years. Matching comps as closely as you can, is there really a premium for selling in June vs December? If so how much?

Is that amount worth the headache if you sell sooner, and worth the carrying cost of you sell later?

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Re: House on the market in June, move-out in Oct/Nov?

Post by jabberwockOG » Wed Mar 04, 2020 11:52 pm

Ignore the real estate agent, they are coin operated. Whatever they say is primarily driven by their desire to get paid ASAP.

If money is not a big issue for your parents, put the house up for sale after your elderly parents have completed their move and the dust has settled. No need to add complexity to an already stressful and likely emotionally and physically taxing event for them. Houses sell all year around.

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Re: House on the market in June, move-out in Oct/Nov?

Post by bampf » Wed Mar 04, 2020 11:57 pm

psteinx wrote:
Wed Mar 04, 2020 6:29 pm
My thinking is sort of:

The optimum for my PARENTS for price + convenience may be the original ~November plan. And I could even see a ~March-April, 2021 plan. I wonder if a real estate agent pushes for June 2020 because "a bird in the hand is worth two in the bush"... i.e. The agent wants the listing NOW (-ish), and a June sale should be fairly easy/quick...

That said, carrying an empty house for several months into 2021 may be tricky. Insurance costs, fallow capital, and an empty home, albeit one in a rather safe, upscale area... Also, our area bills property tax based on January 1 ownership, I think. (Not sure if the latter is customarily pro-rated such that the buyer would pay ~10 months of it, if he/she bought in March or not.)
Personally I wouldn't move my folks more than once. It sucks. Since the money isn't really needed, why maximize for $$ with something that will be stressful. Somethings are more important than a few dollars that won't likely matter much in the long run. And, who knows, you could end up ahead. My brother just sold his house in January after two days on the market at full asking cash price. No one knows nothing. Do whats right for your parents.

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Re: House on the market in June, move-out in Oct/Nov?

Post by quantAndHold » Thu Mar 05, 2020 2:51 am

Assuming that the folks own the house outright and don’t need the money for the new place...

Don’t put them through preparing the house for sale and having it on the market and all that entails while they’re living in it. Get them moved into the new place, then do the work the old place needs when they’re not in it. Put it on the market next spring.

The only person that benefits from rushing the sale this coming summer is the realtor.
Yes, I’m really that pedantic.

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Re: House on the market in June, move-out in Oct/Nov?

Post by Momus » Thu Mar 05, 2020 3:00 am

If beer virus hits 20% of US population, 327 mil X 1/5 = 65.4 X 2% death rate = 1,308,000 death. Does this in anyway impact the housing market?

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Re: House on the market in June, move-out in Oct/Nov?

Post by ARoseByAnyOtherName » Thu Mar 05, 2020 11:02 pm

Momus wrote:
Thu Mar 05, 2020 3:00 am
If beer virus hits 20% of US population, 327 mil X 1/5 = 65.4 X 2% death rate = 1,308,000 death. Does this in anyway impact the housing market?
Yes.

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Re: House on the market in June, move-out in Oct/Nov?

Post by SR II » Thu Mar 05, 2020 11:30 pm

Jack FFR1846 wrote:
Wed Mar 04, 2020 12:55 pm
You're probably looking at next May to be realistic to put it up for sale. You get the nicer season, parents are already moved and pricing for school aged families will hold. So tell the agent to "cool your jets" and wait a year.
+1
Especially if they don't need the money for the move. And, the occupancy date of the new place is in flux.

David Althaus
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Re: House on the market in June, move-out in Oct/Nov?

Post by David Althaus » Sun Mar 08, 2020 12:41 pm

+2 on Jack comment. They don't need the money. Correct?

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Re: House on the market in June, move-out in Oct/Nov?

Post by Freetime76 » Tue Mar 10, 2020 9:14 pm

Assuming the house money is not needed (right?? Or not?) to do the move: Forget the realtor’s advice. People first, then money, then things.

Moving, downsizing, change to senior living is a big enough change. Keep it as easy as possible for the parents. You’re right, expect delays in construction completion.

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