Timing around buying a new home.

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Topic Author
dreamchaser
Posts: 46
Joined: Fri Jun 05, 2015 9:08 am

Timing around buying a new home.

Post by dreamchaser » Tue Sep 10, 2019 3:15 pm

We both are 37 and have a 19 month old and expecting another one in end of April 2020. We live in PA. We currently live in a townhome and a couple of months ago we started looking for a bigger single family home. We have all finances ready (like 20% down, 8 months emergency funds, both maxing tax adv accounts and have taxable accounts) for an upgrade. When we initially started looking for a house our plan is to make a decision or buy a place around next summer. We are looking for a newer home (new or less than 10yrs old). We were also not in a hurry so expecting to see few good homes drop their prices in winter, and we may like one of those (off course not holding on to this). As it turned out now we are expecting a baby in April, and we are in a little bit of dilemma with timing of buying it.

We found a new construction home through a production builder, with a good track record. They are in the final phase and likely to be completed by next summer. We liked a plan, the site and pricing that is perfect match for our preferences. If we sign the contract the expected closing is 4-6 months. The sales agent says it’s mostly by end of Feb. However given it’s a new construction and if its gets delayed that will push the closing to our baby due date. I’m not really sure if it’s a good idea to move and then sell current home and have a new born around the same time.

If we don’t want to pursue the above option, we will definitely loose this site but off course we can go somewhere else for same house, but may not be a perfect location. Meaning pushing into more suburbs and longer commute. Any advice on how to approach this?

barnaclebob
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Joined: Thu Aug 09, 2012 10:54 am

Re: Timing around buying a new home.

Post by barnaclebob » Tue Sep 10, 2019 4:19 pm

Selling a house is easy once its ready for the market and most of your stuff is moved to the new place. People move with kids of all ages, you can do it too.

ohai
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Joined: Wed Dec 27, 2017 2:10 pm

Re: Timing around buying a new home.

Post by ohai » Tue Sep 10, 2019 4:28 pm

I suppose you cannot own the second home, and just not move in until the baby is born?

Otherwise, do you really need to rush into buying this house? If the baby is born and you still live in your current house for 6 months or something, is this really a problem?

DaftInvestor
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Re: Timing around buying a new home.

Post by DaftInvestor » Tue Sep 10, 2019 4:30 pm

Its hard to predict what housing prices will do so I wouldn't wait and hope for lower prices come winter.
Also - while there is some risk that a "4 - 6 month" timeframe will turn into 8 months - in my experience that is unlikely. They want the houses completed and in your hands (so money can be in their hands) as much as you do. And if it is delayed - while a bit more hectic perhaps with a new born - it isn't unmanageable (might be easier in some regards since you may be off work actually). If I was in your shoes - I would proceed if its the house/location you want at a price you can afford.

delamer
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Joined: Tue Feb 08, 2011 6:13 pm

Re: Timing around buying a new home.

Post by delamer » Tue Sep 10, 2019 4:32 pm

If the house and location are really what you want, then go for it.

The logistics might get tricky temporarily if the baby and house are delivered at the same time, but you’ll get through it.

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Devil's Advocate
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Joined: Thu Feb 16, 2012 5:18 pm

Re: Timing around buying a new home.

Post by Devil's Advocate » Tue Sep 10, 2019 4:43 pm

I suppose you could wait until your child is a toddler. That should be much less stressful. :wink:

Personally I'd just buy the house whether you have a baby on the way or not.

DA

vineman
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Joined: Tue Sep 10, 2019 4:47 pm

Re: Timing around buying a new home.

Post by vineman » Tue Sep 10, 2019 5:48 pm

I am a Realtor who has represented buyers who built with large and small builders so I have some knowledge but keep in mind every home build
is as different as the people are.

You will never know for sure but you can request the date and ask the Rep or your Realtor to put your date in the purchase agreement, even though they will likely have you sign something that allow may go over that date.

A couple of questions, is the Realtor you mentioned the builder rep or a Realtor that is work on your behalf? Have you already
talked to the builder rep about your time line is or is that just info expressed by your Realtor after talking to the Rep? The reason I ask
is large builders like to give themselves generous closing times due to building durning the winter with delays etc. Do you have to sell your existing townhome to get the equity for your downpayment for the new home? or do you qualify for owning two homes? It makes a difference
because if you have to sell before buying and closing, you will need to focus on that first. If that is the case, are you prepared to make a tempory move to a short term rental if your home sells and closes before the builder has your new home completed? If its not the case and you don't need your equity to close on the new home you can close on the new home first and then sell your existing home or potential if you needed the equity from your existing home and you had more than the 20%-40% equity in the existing home, you may be able to get a bridge loan where you can get up to 80% of your equity from your existing home to use for your downpayment but of course you would need to be qualified for having both home loans on your debt to income ratios. I know this is a little more detail or complicated and you may like but its a reality when you have a home to sell.

Do your have a Realtor representing you and if you do you can ask them these and other questions so you know all of your options and road blocks
is buyer and selling.

This may at least help you with asking more questions and you may already know the answers but your post didn't indicate the details.

Vineman

Clarice
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Joined: Thu Jun 14, 2018 3:26 pm
Location: Orlando FL

Re: Timing around buying a new home.

Post by Clarice » Tue Sep 10, 2019 6:37 pm

Once you hesitate you are too late. I learned that skimboarding.

Topic Author
dreamchaser
Posts: 46
Joined: Fri Jun 05, 2015 9:08 am

Re: Timing around buying a new home.

Post by dreamchaser » Wed Sep 11, 2019 4:15 pm

OP here. Thank you for all useful your replies. You all definitely provided mental strength to get through this.

Topic Author
dreamchaser
Posts: 46
Joined: Fri Jun 05, 2015 9:08 am

Re: Timing around buying a new home.

Post by dreamchaser » Wed Sep 11, 2019 4:18 pm

vineman wrote:
Tue Sep 10, 2019 5:48 pm
I am a Realtor who has represented buyers who built with large and small builders so I have some knowledge but keep in mind every home build
is as different as the people are.

You will never know for sure but you can request the date and ask the Rep or your Realtor to put your date in the purchase agreement, even though they will likely have you sign something that allow may go over that date.
Vineman
Good point, yes this is from seller's manager but I will definitely look at the contract language. Thanks for the detailed post on finances, yes we can have two mortgages at the same time.

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