Banging my head...

[IOBA]

Ok, not really.  It's a Saturday night, almost midnight, and I am sitting here at the computer, running numbers to see if I can qualify for my dream property that became available, again.  Was under contract in 2013.  Sellers pulled out last minute. Literally, the night before closing they pulled out.  They offered it to me again 2014, but I declined.  (I was still raw from their cancelling last minute.)  They called me up this week and offered it to me again.  Circumstances for them have changed and they really need to sell it.  

Now I am struggling with whether to sell the place I just bought sooner rather than later...(I had planned to sell it in the fall.)  The market has gone up 4% (roughly) since I bought it last year.  I will still loose money it, but overall, not much money at all.  The amount I would have to pay to sell it would equate to one year's worth of rent, which I would have had to pay anyways, if I didn't own.  

This would be the last property I would buy.  (I know, I say that now...)  It's literally has everything I have dreamed about for land.  The house, meh, needs some work.  Stuff I could do, or pay a contractor a few thousand to do.

Using a draft budget, I can afford the place without selling my current one. Lender will go up to 45% DTI.  My calculations are that the DTI would be 25% without taxes and insurance.  

Do I go for it? 

[Anonymous]

Kinda makes you wish you could make the seller reimburse you for all the expenses they cost you when they backed out

[_NERD]

+1 dansamy.

IOBA: do you really want that house they're offering you again? Are you happy with the house you're currently in? Would you be happier in the other house?

The ball is in your court.

[Anonymous]

Do it.. Here is why.  You have always wanted it and now they have come to you and not the other way round.  You have the upper hand and they are desperate to sell... That alone should have you salivating... For the price you are thinking of, make sure you deduct all the expenses, pain and suffering [just joking] you incured the first time round.

This scenario is almost like you have been after this girl for a while..  A really long time and now that you are not thinking it, she is back wants you badly.  Make those sellers pay...

You were planning to sell this fall anyway.  So there is nothing wrong with selling it sooner.

[IOBA]

Update - I went to the bank and asked for 100% financing.  They are seriously considering it becuase big picture I look good.  There would not be any PMI becuase they will do two loans (80/20).

My current place is not in the equation.  But once my current place sells, I'll have enough funds to pay off the 20% loan off in full, and pay down the 80% loan.  Which means there's no restrictions or contiginencies.

We are not under contract yet.  My banker is running comps and doing a looksie.  He recommended just going under contract and paying for an appraisal.  I declined.  An appraisal will cost about $1000-1500 (size of house, size of property, number of out buildings.)  I have no intention of throwing away the money for an appraisal if the estimated fair market value is significantly less than what the sellers want to sell for.

I expect by weeks end, I will be in negotiations again.  

I feel like this time, maybe things will work out.  I found my old notes, my old numbers, and my old research...so maybe that is a good sign.

Regardless, this is a practical transaction not an emotional purchase for me.  So I think I will be ok if things don't work out.  (But I tell ya, if the appraisal comes back ok and it's a go to close, then I will start to get excited.  Just a spark of excitement.  Once it's a done deal - and it's really mine - then I will be excited!!!)

[ezdriver]

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@Anonymous wrote:

Do it.. Here is why.  You have always wanted it and now they have come to you and not the other way round.  You have the upper hand and they are desperate to sell... That alone should have you salivating... For the price you are thinking of, make sure you deduct all the expenses, pain and suffering [just joking] you incured the first time round.

This scenario is almost like you have been after this girl for a while..  A really long time and now that you are not thinking it, she is back wants you badly.  Make those sellers pay...

You were planning to sell this fall anyway.  So there is nothing wrong with selling it sooner.

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Ha ha ... that is some analogy. Comparing the purchase of an object to pursuing a chic? Really? Are you married?

[ezdriver]

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@IOBA wrote:

Update - I went to the bank and asked for 100% financing.  They are seriously considering it becuase big picture I look good.  There would not be any PMI becuase they will do two loans (80/20).

My current place is not in the equation.  But once my current place sells, I'll have enough funds to pay off the 20% loan off in full, and pay down the 80% loan.  Which means there's no restrictions or contiginencies.

We are not under contract yet.  My banker is running comps and doing a looksie.  He recommended just going under contract and paying for an appraisal.  I declined.  An appraisal will cost about $1000-1500 (size of house, size of property, number of out buildings.)  I have no intention of throwing away the money for an appraisal if the estimated fair market value is significantly less than what the sellers want to sell for.

I expect by weeks end, I will be in negotiations again.  

I feel like this time, maybe things will work out.  I found my old notes, my old numbers, and my old research...so maybe that is a good sign.

Regardless, this is a practical transaction not an emotional purchase for me.  So I think I will be ok if things don't work out.  (But I tell ya, if the appraisal comes back ok and it's a go to close, then I will start to get excited.  Just a spark of excitement.  Once it's a done deal - and it's really mine - then I will be excited!!!)

---

I'd include a significant financial penality if the seller backs out afer all contingencies have been met.

[Anonymous]

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@ezdriver wrote:

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@Anonymous wrote:

Do it.. Here is why.  You have always wanted it and now they have come to you and not the other way round.  You have the upper hand and they are desperate to sell... That alone should have you salivating... For the price you are thinking of, make sure you deduct all the expenses, pain and suffering [just joking] you incured the first time round.

This scenario is almost like you have been after this girl for a while..  A really long time and now that you are not thinking it, she is back wants you badly.  Make those sellers pay...

You were planning to sell this fall anyway.  So there is nothing wrong with selling it sooner.

---

Ha ha ... that is some analogy. Comparing the purchase of an object to pursuing a chic? Really? Are you married?

---

Hope you are not offended.. It is a hyperbole..

[Anonymous]

Why not just rent your current house out until you can get out ahead or even if it won't affect your getting another loan for the house you want.  Granted I am just a browser biding my time until I am whre I need to be financailly to buy my first home

[IOBA]

Update - we are still in negations.  We actually had a verbally agreement and then they threw a zinger in there today that I can not afford.  I said I couldn't afford it, but it seems to have fallen on deaf ears.  So I am gathering up my courage to call them and tell them no, they are paying all of their normal closing costs and I am NOT paying any of them.  (Can't afford to.)

I am hoping that they will be ok with this.  I think at this point they will grumble, think it over, and agree.  There's a value in knowing there's a solid buyer at the table.  There's value in knowing that the closing date will be here very soon.

*sigh*

I don't want to be a landlord which is why I am not renting my place out.  I could hire a property manager, but not looking to give up so much mula for their services.  I would be operating at a loss for several months.  At the end of the day, it will take about 5 yrs of consistent tenants to break even.  That's financially break even before the IRS looks for a portion of the income.