Relocating to new job and how to sell & buy @ same time

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Findourway1
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Joined: Tue Apr 02, 2019 8:18 am

Relocating to new job and how to sell & buy @ same time

Post by Findourway1 » Fri Jun 14, 2019 4:01 pm

All,

I was offered a new job in NOVA (Northern VA) with a slight increase in pay and more down the line. The new job ~40 miles away from my current job & home in MD, is in a much better school district, and comparable houses are at least 40% more expensive. My oldest will be ready to start Pre-K next year so this comes at a good time (except for the prices).

We are limiting ourselves to Townhouses to fit our desired budget of ~450k (single income family with Stay at home mom, 2 kids and ~6k net each month). We are looking to move within the next year.

I consulted with a real estate agent and his recommended steps:
- Prepare my current home for sale at any time
- Get pre-qualified
- Find a new place in VA and buy with the contingency of selling the current home. Will have to convince seller that my current house will sell quickly.
- Sell my current home with the rentback to allow for moving out or move temporarily into an apartment
- Buy new place using funds from sale of current home


My questions are:

1. Moving to an apartment temporarily seems like a lot of trouble. I do understand the logic of getting funds from the sale and applying it to buy a new place. What do people do in this situation? How do they time it so that they can buy and sell at essentially the same time?

2. As we will be moving from a Single Family House to a Townhouse, are we giving up equity since Townhouses are usually less valuable than Single Family houses with HOA fees & so on? I strongly believe in living close to my job for an easier commute. But I am also wondering if Townhouses hold their value like a SFH?

3. If I hire the agent for both selling current house and buying the new place. What fee percentage is reasonable to offer? Can I have him cut his fee below whatever Redfin offers given that he is getting paid in 2 transactions?

4. I will be also paying PMI since I won't have 20% down when I buy as I don't have that much equity in current house yet. Is there any way this can be avoided through some type of jumbo loan?

5. We figured renting would be wasting money since we already know the area and will stay in the home for 5+ years. Is that the correct way of thinking of this?

Advice appreciated.

Thank you!

bloom2708
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Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Relocating to new job and how to sell & buy @ same time

Post by bloom2708 » Fri Jun 14, 2019 4:08 pm

People do what your realtor proposed all the time. It requires some luck and good timing and a buyer that is flexible.

Will you end up in the townhouse you want? That is a tough one.

How about renting very close to your new job and in the school district you want for 1 year while you size up the new location?

Will the new job cover any moving expenses or short term housing?

The fees to buying and selling are high if you land in a "not really where you want to be townhouse".

Good luck!
"We are not here to agree with you; we are here to provoke thoughtfulness." Unknown Boglehead

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FlyAF
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Re: Relocating to new job and how to sell & buy @ same time

Post by FlyAF » Fri Jun 14, 2019 4:15 pm

I'd rent at the new place. Sellers don't like contingency offers, though I guess some are successful, I'd personally never accept one. I'm currently in the middle of buying a new place and will need to sell my old. I'm in a different financial situation where I won't list it until I'm about to move, have the 20% down w/o tapping equity, etc. When I was in your position, I'd rent until the old place was sold and closed.

Topic Author
Findourway1
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Joined: Tue Apr 02, 2019 8:18 am

Re: Relocating to new job and how to sell & buy @ same time

Post by Findourway1 » Sun Jun 16, 2019 9:09 pm

We figured that since we are already building equity, it would be better to continue by buying a house instead of renting. Seems renting has more steps involved instead of just buying and seems more expensive with moving & possibly storage expenses.

We also figured that as long as we are in a good school district and good location (~10-15 mins to grocery, parks etc) we are good. So if the Townhouse is smaller but still solid and in a desired location then we can adjust. We are not looking for a perfect home - just something that won't be a money pit and is in a good location.

The new job will not cover any relocation expenses so it is all on us. That is why I am leaning towards buying. But NoVA real estate market is very hot so the agent is also not sure if sellers would accept a contingency offer.

We are also thinking of another option where my wife and kids can stay with her parents for 5-6 months. I would move to a small room near new job and then hunt for a townhouse (and skype to figure out the final decision about new home). That would ultimately be cheaper even with travel expenses.

Thoughts?

Thanks.

iasw
Posts: 205
Joined: Mon Dec 05, 2016 2:02 pm

Re: Relocating to new job and how to sell & buy @ same time

Post by iasw » Sun Jun 16, 2019 9:25 pm

Did you accept the job? Do you truly want it? Seems like the hassle might be high for the payout.

I like the renting option. You aren't losing current equity. It is valuable to not rush into a housing purchase.

Splitting and living separately for a few months is a huge bummer. I'd say no way to that.

iasw
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Re: Relocating to new job and how to sell & buy @ same time

Post by iasw » Sun Jun 16, 2019 9:26 pm

And Skype? To buy a house? Your wife wouldn't be that far away, she should be there in person.

Topic Author
Findourway1
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Joined: Tue Apr 02, 2019 8:18 am

Re: Relocating to new job and how to sell & buy @ same time

Post by Findourway1 » Sun Jun 16, 2019 9:42 pm

iasw wrote:
Sun Jun 16, 2019 9:25 pm
Did you accept the job? Do you truly want it? Seems like the hassle might be high for the payout.

I like the renting option. You aren't losing current equity. It is valuable to not rush into a housing purchase.

Splitting and living separately for a few months is a huge bummer. I'd say no way to that.
The new job is in a much better school district and more advancement opportunities. So yes, it is something that we want.

But it appears we have to run the numbers of renting and moving expenses again to see if it makes sense.

thanks.

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