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Old 01-15-2011, 11:19 PM   #21
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From your posts it seems you are already wheelchair bound... true

If so, then I would buy the house across the street IF it were fully built for wheelchair access... if you are not, but just have problems with stairs... I would probably still buy the house as you said it would improve your lifestyle... to me that trumps many other considerations...
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Old 01-15-2011, 11:23 PM   #22
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Quote:
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2.A comparative analysis by a realtor, priced our house at $563k with a net to us of $521k. If I subtract 25% the net will be $390k approximately. We got this house built, without a mortgage in 2002 for $510k. Frankly a loss of $130 will be a considerable loss, but in long run it may not change our lifestyle. In short term a single storey house will improve our lifestyle.

3.We had planned to sell our house in a year or two when the market improves. Frankly we did not consider the ramifications of an extended bad real estate market. We thought vaguely that we may recover our $510k we put in 2002.

i hear you about the "loss" of 25% but isn't this a lateral move, ie the house you want to buy is also down 25% as well? maybe selling the new house one day will bring less than if you sold the old house at the same time but that's the future and no one can control prices.

i still say do not own 2 houses at 1 time. the expenses are going to be high and you can't do any work so anything that goes wrong or normal maintenance like mowing the lawn will double your expenses. and fwiw, i owned a house in flordia near kissimmee and lost money selling it and tenants destroyed it every time they left so anything i got in rent went out the door for repairs times 2 or 3! it also sat empty for long periods of time, the real estate company that managed it was $hit. imo being a land lord is not the place to be. i was 1000 miles from the house, you are across the street but being a landlord is not for me. ymmv.
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Old 01-16-2011, 01:28 AM   #23
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The other issue no one has mentioned is the stair lift. That will hinder the sale of the house.
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Old 01-16-2011, 06:01 AM   #24
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IMO - I would not do it unless I could buy it at a significant reduction... I would pay no more than 50% to 60% of its current value!


Me.... I would just wait till the real estate market recovers. Which is what I intend to do. I can wait. Matter of fact... I might sell our house and rent for a few years while DW and I get our extended traveling done during early FIRE.

I would not want to play landlord, pay insurance and property tax on two homes, assume other risks... etc.


If you are in a real hurry... try to list your home and see if you can sell it first (for your price).
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Old 01-16-2011, 07:56 AM   #25
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Being in FL, I think you also have to consider the possibility of being hit by a hurricane and having 2 homes with hurricane damage. One is bad enough. It's been quiet for a few of years but it had been quiet for something like 40 years when we got his 3 times in one year in Lakeland in 2004.
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Old 01-16-2011, 10:10 AM   #26
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My opinion? In this housing market, it makes more sense to sell first, then buy. During the present housing crash, there are many unbelievably perfect homes for sale for nearly nothing out there.

It takes a lot of self-restraint not to buy first!
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Old 01-16-2011, 11:36 AM   #27
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Quote:
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.

2.A comparative analysis by a realtor, priced our house at $563k with a net to us of $521k. If I subtract 25% the net will be $390k approximately. We got this house built, without a mortgage in 2002 for $510k. Frankly a loss of $130 will be a considerable loss, but in long run it may not change our lifestyle. In short term a single storey house will improve our lifestyle.

A year ago (in Texas -- in a not good but not terrible market) we got a CMA from a realtor we have dealt with several times. We emphasized strongly we wanted to sell quickly not maximize price.

We wanted to buy a downsize house and did buy one planning to do some extensive remodeling.

We placed our existing house on the market for $599k based upon the feedback from the realtor and the CMA.

A year later...

We now own 2 houses. The downsize house, btw, needed far more extensive remodeling than makes sense to do so we will be tearing it down and building new (we still love the location and are OK about that but it all ends up costing more than we originally anticipated).

Our listing expired recently. By then it was down to $537k (each price decrease initiated by us not the realtor).

On paper if you look at CMAs the original listing price isn't bad...but houses aren't moving. Many houses have been on the market 2 or 3 years (even if good times custom homes on acreage where we are sell fairly slowly). The factor that we really didn't get from our realtor with the CMA is that if a house sells that the number that is realistic is X but --- there are hardly any buyers in that price range. You either have to wait it out -- perhaps for years for the person who loves our floor plan and amenities or we have to drastically price cut it to get someone to buy it who doesn't love the floor plan, etc.

In retrospect, I wish we had waited until we sold this house (even though the other location is still so ideal and very few properties come on the market in that area).

We do have reserves to make it for several years if need be...but it does cut into money so I hate to do that. We are expecting now that we will be writing a large check at closing if and when we get an offer (we will relist soon).
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Old 01-16-2011, 02:10 PM   #28
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Thanks for the above insightful responses.

To answer some questions from above --

- I am not in a wheel chair. My right leg is weak, due to multiple knee replacements, i.e cannot stand for some length of time, I walk with a mild limp, the leg length has been shortened by an inch or so, so my right shoe has to be elevated. It is difficult to climb or go down the stairs, and I have to use both my arms to do that.

- Yes, it is a lateral move ie.. sell for less & buy for less, but the actual dollars you lose are higher when you sell a larger house, than the dollars you are paying less on the smaller house.

- The stair lift track is bolted on to the stairs, which could be removed, but the holes will need to be covered.

- I realize, the single storey smaller houses in our subdivision will not be available if & when we do sell our house in future.

- Our offer, contingent on selling our house first was shot down by our Realtor, he is sure the bank will not entertain any contingent offers.


Thanks much for your thoughts & suggestions, keep your opinions coming. We still have not decided one way or the other.
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Old 01-16-2011, 02:22 PM   #29
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Eventually you will need to put your home on the market, start preparing it to show now. Price it to sell, see what happens. You can always change your mind about selling.

My experience is that preparation takes time, longer than you expect (went through that last year, house sold).
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Old 01-16-2011, 03:52 PM   #30
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I can't get much of a picture of what your current home is like (though it sounds nice), so maybe this is totally wrong, but if what is least suitable about it is that it has two stories, maybe you could do enough remodeling to seal off the second story and live just on the first?
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Old 01-16-2011, 05:57 PM   #31
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GregLee's suggestion is not all that bad. If it is possible to add a master downstairs, you then have the upstairs for guest. Duel AC so only the down stairs is cooled. It all depends on if you really like the house you are in. We upsized in retirement. We went from about 1,700 sf. to 2,700 sf. However 700 of that is in a guest house we seldom use. Downsizing that gets you into a financial situation is one thing, but just going smaller to be smaller, IMHO, I thing is a mistake. In fact, we could even use more storage. However, as I have said before, we like stuff! and, I seldom throw away old computers and such.
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Old 01-16-2011, 08:12 PM   #32
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GregLee's suggestion is not all that bad. If it is possible to add a master downstairs, you then have the upstairs for guest. Duel AC so only the down stairs is cooled. It all depends on if you really like the house you are in. We upsized in retirement. We went from about 1,700 sf. to 2,700 sf. However 700 of that is in a guest house we seldom use. Downsizing that gets you into a financial situation is one thing, but just going smaller to be smaller, IMHO, I thing is a mistake. In fact, we could even use more storage. However, as I have said before, we like stuff! and, I seldom throw away old computers and such.

I would say this is not the way to go in this situation... not all, but this one.. here are a couple of reasons....

His house is already bigger than what he wants (at least that is what I have read into this thread)...

If so, then the cost of upkeep, utilities etc. etc. will all be higher...

You then have the cost of adding the extra room... if this is not done well, then it can hurt in the resale... When I was looking at houses there was one that did exactly this... it looked like there were two masters and I asked the RE agent if they had added the one downstairs (it did not look natural with the flow of the house)... she said yes... when I checked out side, you could tell that they contractor did not put in the necessary workmanship needed to make it flow properly with the rest of the house... the house was even priced less than others the same size without the added bedroom... it was a negative to the house... it took a long time for it to sell..
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