Are you considering selling your home and moving up? It might be time to do some homework. Consider the following to home sellers who don't do their math.
A young family sold their condo in Falls Church, before they determined how to buy their next house. All they thought about was moving into a larger home for their growing family.
A young couple purchased a condo in Falls Church. This was their first purchase of real estate. Soon after they married. In time the condo was packed with new home furnishings and their credit card debt had grown a bit. Then, the wife quit working to stay home with their baby. Even with the new addition to the family, the couple still had enough income to make all payments on time. On a lark, they stopped an open house in Annandale. This home had a yard for the toddler to tumble in and a basement for dad's hobbies and mother loved the kitchen. They were head over heels in love with the new home. The agent at the open house convinced them the new home would only cost them another $200 per month and offered to list their Falls Church condo for sale.
It takes as much energy to wish as it does to plan. -Eleanor Roosevelt
The agent negotiated a sale of home contingency and the couple contracted to purchase the home in Annandale. Meanwhile, the couple decluttered their condo. They actually arranged to stay with nearby family until they had a contract on the condo. The condo sold in a single weekend. Then they got serious about closing their loan on the new purchase. In order to qualify for the new mortgage payment, they had to pay off a student loan and the credit card debt. They had plenty to pay off these debts from the proceeds of the condo sale. The trouble is that these payoffs left less than a 10% down payment for their new home.
Skyline is located between Baileys Crossroads and Fairlington along Rt 7 / King St.
Because of their changed income and low down payment, the couple no longer qualified for the home in Annandale. With only 5% down, the couple had to pay higher interest rates on a second to avoid mortgage insurance. Without the wife's second income, the total payment meant that they only qualified for a new mortgage for a home which cost less than the one they sold! They were no stuck with family (not a real option) or moving to Woodbridge. The move added 45 minutes to his commute.
The moral of the story is before you put your home on the market, make sure you can buy the home you want. Don't use the seller's agent. Get your own buyer's agent. Talk to a loan officer and check your credit. Don't get caught after selling your home, when it's too late, to repair any credit issues. Of course, you may have a great down payment from the sale of your home, but other bills like credit card debt, auto loans, and student loans may need to be paid off so you qualify for the new mortgage payments.
Considerations when selling
Willow Woods is in Annandale
Do you have a mortgage prepayment penalty? A pre-payment penalty could consume a significant amount of your equity.
Know your selling expenses. Not only will you have to pay an agent, a seller needs to pay taxes and pay for title work.
Do you have to do work on your home to sell it? You can only expect top-dollar for your property if your property is in top condition. Are you prepared to sell at a discount? Are prepared for the expense or work of getting your home in selling condition?
Talk to an agent at Nesbitt Realty before you put your home up for sale. We'll give you an honest assessment of what it costs to sell and help you determine what you can afford in your next home.
Featured Home in Annandale
Will is the principal broker of Nesbitt Realty and Condo Alexandria. He is licensed in anywhere in the Commonwealth of Virginia, but focuses on those communities found in and around Alexandria, Arlington, Mount Vernon and Springfield/Franconia.
Will has been involved in real estate management, sales and investment for more than twenty years. He is a veteran of the U.S. Army. While in the army, he studied Russian at Monterey's Defense Language Institute. He is also a "veteran of the dotcom wars" and built most of the sites associated with NesbittRealty.com
Will currently resides in Belle Haven Estates just outside Old Town, overlooking New Alexandria. He is a former president of the Mount Vernon Youth Athletic Association and founded the Alexandria Fun with Friends Group. Will is the author of BattlestorM, a tabletop fantasy game, which was published by Ral Partha Publishing in the late '90's, and Arthur's Realm, a boardgame available at the Gamecrafter.
