Things are looking promising for being able to make some money when we sell this house we bought to live in until we build. DH was just the other day doing his own "analysis" on what he thinks we can ask for it and was guessing at least $200,000. We paid $161,000 for it. We didn't put very much down on it, as we wanted to be able to purchase our land free and clear, but in the next 10-12 months (by the time a house would be done and we'd sell) we'll owe about $152,000 on it. I was kind of skeptical of his number, but told him I'd trust him because he was right about what we could get for our old house.
Then today I received a letter in the mail from our realtor guy. He wanted to let us know that he had moved to another real estate company, as a managing broker, and had done an analysis on our home. At this time we are in the $205,000 range (and values seem to be on the increase around here, so another 6 months to a year might be even a little better). He said with our upgrades and landscaping we should be able to be very competitive at that price, with other homes similar in the area that have sold for that price.
Woohoo!! If we can get $200,000, that will give us $38,000 (after realtor fees) to put towards our new house. With the paid for land and work we have done/will do on it out of pocket, we should have approximately 30% down on our construction loan.
That's very good news indeed. I guess you have added quiet a bit of value to the house making it pleasant for yourselves.
ReplyDeleteyes, and according to what it was appraised at we bought it about $10k under value. We put in about $10k by insulating and adding electricity to the shop, new fence around whole lot, and landscaping and figured we'd for sure get that investment back out of it. As long as renter neighbor keeps his place clean of all his junk, we should be ok when comes to selling time.
DeleteWonderful news. I'm so pleased for you. My house is too big for me now that everyone has flown the nest BUT firstly, I love it here and my neighbours are great. I have a wonderful view with a farm at the back too. The biggest thing, however, is that the French and Swiss are working together to build a train line called the CEVA which will (eventually) link Geneva airport to Chamonix/Mont Blanc direct (for the skiers) - although not for a few years. In the meantime, the line is being extended further and further and in the next couple of years will stop in my local town. Demand for Park and Ride for commuters going to Geneva to avoid the horrendous commute will be great - so I'm staying put and hope to reap the benefits when I'm ready to downsize! Well here's hoping. Anna
ReplyDeleteIt sounds like you are smart to stay there for the time being and see if you can take advantage of the market down the road. I know if we had been able to stay at our old house for several more years we probably would have been able to wait for a developer to come in for quite a profit, but we just couldn't stay there any longer. We stuck it out too long, as it was!
DeleteHey every penny counts in building land.
ReplyDeleteit does! and hopefully the site work we are paying out of pocket is also increasing the value when appraisal time comes
DeleteI know of people who had a realtor tell them could get more money for their property than other realtors did. Then, the house would not sell at that high price. So, the realtor got the business, frustrated them with many showings. In the end the house price was greatly reduced. So, remember that realtors want your business and might do anything to get you to sign. However, happily you might make lots more than you expected. I hope that is the case.
ReplyDeleteI feel very confident in this realtor. We used him for our purchases here and he was awesome. DH watches what homes are selling for around here very closely so we were confident when he gave us the same analysis
DeleteOh, good. Things should go well for you.
DeleteThis sounds very promising! I'm eager for you to make the plunge and start building! Exciting times!
ReplyDeletewe are too, but very discouraged by our builder...who was supposed to call this week to set up a meet with us. He blew us off yet again, so we're pretty bummed.
ReplyDeleteHowever, happily you might make lots more than you expected. I hope that is the case.
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