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December 23, 2008
Are we stuck?
We bought an 1100 sq ft two bedroom co-op in Park Slope in late 2005 for 625K. Redid the bathroom, floors, painted, added backsplash, new floors, a dishwasher to the kitchen. Around 20K worth of work.
We are outgrowing our place (had second child earlier this year). I'd love to get into something bigger but fear selling in this market. A realtor has given us what seems to be a high-ish price for our place, but not sure if it's realistic or if we'd end up dropping it to get it sold. We need whatever we can get to buy up.
What to do: make it work in the two bedroom until things turn up (knowing it could be 3-5 years) or bail now?
Comments
I think just don't get stuck with 2 mortgages. If you sell and buy in low market or buy and sell in high market not great difference. Depending on equity perhaps even easier to move up in low market. What are mortgage rates for buying now as compared to what you are holding?
Problem is finding a buyer. No harm in trying.
Posted by: Petebklyn at December 23, 2008 4:03 PM
I'd think it's about what you buy and if you get a bargain on it. It's not a loss to sell at a loss if you buy a larger place that's nicely discounted, in which you stay long term and eventually see its value come back up.
Posted by: traditionalmod at December 23, 2008 4:06 PM
Second Pete's point about getting stuck with two mortgages. The market is very soft...you could put in discount bids with contingencies that you sell your place before closing.
Posted by: daveinbedstuy at December 23, 2008 4:09 PM
Try co-sleeping for the next two years, you won't any additional space (we did it and it's good for the kid, if not for you-know-what ;).
Posted by: cmu at December 23, 2008 4:30 PM
Interesting idea about putting in contingency bids. We definitely can't get stuck with 2 mortgages. That would be really awful. We want to sell in prime Park Slope and find a house in Windsor Terrace for no more than 1.1-1.2 million. We don't mind doing some work, or living in it while we slowly renovate. We just need something that has good bones, a good layout and a yard, preferably in PS 154. I wonder if Windsor Terrace will soften more than Park Slope and we could get a good deal there? Our co-op rates will be better than what we are looking to buy since we will be in a jumbo category with the house, though it depends on what they do with the FHA loan limits next year in NYC metro area.
Thanks for your perspectives...I don't feel as freaked out now. I think we could go on the market and see what happens. After all, if we get lousy bids we don't have to take them.
Posted by: wishinone at December 23, 2008 10:03 PM
Wishinone:
it's scary to put your place on the market b/c you really don't want to lose out. I get it b/c we are in a similar predicament. As you said, you could always test the waters, put it on the market and end up getting a good bid for it.
we are looking to put our 4 story house on the market very soon and live btween 6th & 7th avenue on 14th. the house was renovated a few years ago when we moved in so it doesn't really need work unless you want to make cosmetic changes and add some fixtures etc. we are getting $2800 for the first two floors and our apt(top 2 floors) has 3 bedrooms with a finished backyard and deck.... - we would ask 1.3-1.325
Posted by: gemini10 at December 24, 2008 11:04 AM
Since you are selling and buying in the same market, it doesn't really matter when you sell. You may be selling at a low point, but you're also buying at a low point and getting great mortgage rates.
Only downside may be limited inventory as others who don't need to sell may try to wait out the recession.
I think you might be in a very strong position going from PS to WT, in that WT prices may have fallen farther than PS ones. Also, PS 154 is pretty good (we have friends with a daughter there) but the middle schools are not good, our friends say.
Posted by: Bolder at December 24, 2008 11:50 AM
I think that two children under five can share a bedroom (even a tiny one) even if they're boy and girl. My older brother and I shared a bedroom into our teens, as did my two younger brothers. It wasn't always pleasant but we've all survived reasonably well into our forties. If you are keen on selling, but in no particular hurry to move, put your place on the market and dig in for a long wait. The real downside of this option is having to keep the co-op staged at all times, which can be stressful with two little kids. After you have all your ducks in a row for a sale you can buy, there will still be plenty to choose from and you will be in a better position to push for a quick closing.
Posted by: bohuma at December 25, 2008 12:25 PM
I agree that the kids would be fine sharing a room for a couple more years, and that we could make some changes to our place that would make better use of some storage. There are a few other factors influencing my desire... we live on the 3rd floor, we would like a yard, have a desire to feel "settled" into a long term living situation, but those aren't "mandatory" reasons to sell.
Gemini10: your place sounds interesting, especially with the rental income so high. can you access the yard being in the upper duplex or is it for the tenants? Curious: if you were to sell your place would you be open to a contingency bid (like we have to sell to close)? I assume it would be your last resort? If you want to talk offline, you can reach me at wjshewmaker @ mac.com
Posted by: wishinone at December 26, 2008 8:45 AM
well technically you want to sell one place and buy another. So if prices are down - they should be down in both the old and the new place.
Posted by: bobjohn at December 29, 2008 2:10 PM
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