Sell now primary now or wait?

Jokerpersona wrote: ↑ Sell on assignment, or sell regularly.

But the question from OP is whether to sell the current house they're living in. The pre-con is their new principal residence they're going to be living in once they close.

bobbings wrote: ↑ But the question from OP is whether to sell the current house they're living in. The pre-con is their new principal residence they're going to be living in once they close.

That is correct. We will be moving to the new build and selling our current primary.

Jumanji12 wrote: ↑ That is correct. We will be moving to the new build and selling our current primary.

Depends on your risk tolerance. No one knows what the market will be like in the fall when you close. I'm guessing you already came out on top if you bought a precon a year or 2 ago and now that you can sell your current house in today's market, you've either made money from these 2 transactions or if you're upsizing, your gap between the 2 houses is much smaller. If you don't want to risk it, then sell it now and bank on what you know you can get for sure once sold.

Also, if you're using a RE agent to sell your place, ask him or her for a much clearer picture of the market in your area. Not sure where you are located.

Can you sell your principal residence with a long closing or option to rent it for 6 month until the preCon is ready?!
Only moving once with the above plan, likely the least troublesome for your family.
Try to catch the last nickel may sound rational, but not reasonable. Good luck

DieWithZero wrote: ↑ Can you sell your principal residence with a long closing or option to rent it for 6 month until the preCon is ready?!
Only moving once with the above plan, likely the least troublesome for your family.
Try to catch the last nickel may sound rational, but not reasonable. Good luck

Either of these may hinder or deter buyers. Who knows that precon may get even more delayed.

Edit: well it’s an exact 50/50 split in between the votes. Lol

To me, the fact that you are posing the question is that you are nervous and anticipating some bad news / downside due to hikes.

You may as well sell now because locking in gains is better than to miss out on gains imo because it eliminates downside risk.

Ask yourself, would you,

1. be unhappy that you sold early and missed out on another X % gain OR
2. be happy that you sold at the top and didn't lose Y%

Risk management is key here and staying ahead on your finances.

Keep both. Don’t sell if at all possible.

DieWithZero wrote: ↑ Can you sell your principal residence with a long closing or option to rent it for 6 month until the preCon is ready?!
Only moving once with the above plan, likely the least troublesome for your family.
Try to catch the last nickel may sound rational, but not reasonable. Good luck

I second this. It also takes a bit of time to get a pre-con comfortable to start living in (eg. Painting, buying appliances/furniture, fixes, etc.) so personally I would prefer to have a couple months of overlap if you're not crunched for money.

I get you're trying to optimize, but stress is a cost, too...

Jumanji12 wrote: ↑ Hello,

We have a pre-con that will most likely be delayed until September-October.

The dilemma is whether to wait until closer to the date of new build to sell our current primary OR sell now and lock in a price.

I realize interest rates will be increasing and a war that could get worse and impact RE. I understand no one has the crystal ball but wondering what most people will do.

Feel free to vote!

You are me...more or less.

I bought, and am waiting on, a pre con detached house that I put a deposit on ages ago (...over a year ago). Disclaimer: I knew it was going to be a long close heading in, but I saw that as a plus...appreciation and all.

Sidenote: I do have a couple other properties (but less net value than my primary)

Anyway, soon as the US Fed in Dec said inflation was out of control and rate hikes were starting in March, I decided to list and sell early in the new year (there is a whole thread going through the process and my thinking here on RFD if interested). Before the Dec fed meeting, I had zero intention of selling my primary, until I could move into the new build directly late this year, or early next year.

Long story short, the house sold early last month, when RE was still on fire...I took in like 70 plus showings, a dozen or so offers, and sold for ~$500k over list...which was ~115% more than what I bought it for 2 years earlier. Over this same last year, the new build also has appreciated.

The downside to doing this, is that my house closes soon, so I am now renting (albeit a very nice place) for the next 12 months. Moving is kinda a pain...but because it's short-term, we are only unpacking essentials in the rental...and because of the rent, we are doing zero builder upgrades...and instead it let's me completely reno the new build to my tastes, before we move in (at a much cheaper cost to boot)

The upside for me is, I have locked in huge gains, I sleep like a baby, and it feels pretty not-to-bad to see houses near mine already aren't selling like they did just a month ago. There are now lots of new 'low listings', people hoping for price wars and winfalls....that have failed, and have turned into relists at a price closer to what they hope to get.

Could it go up again from here? Could we have waited until our new builds were ready and eked out a few more dollars? Sure...we'll maybe...but I doubt it, the US fed yesterday just laid out SIX more intended hikes for 2022. Is that the environment for a higher high in RE? I have my doubts.

From my prospective, having sold just 6 or so weeks ago, I am still feeling pretty great about the decision. And in another couple weeks when it closes, I get to put that cash from the proceeds to work earning me more returns.

Congrats on having the foresight and money to buy a precon house

As people mention, it comes down to your risk tolerance

1) If house prices do drop a bit, are you ok with selling at a lower price?
2) If house prices do drop, can you afford the new house

Jumanji12 wrote: ↑Hello,

We have a pre-con that will most likely be delayed until September-October.

The dilemma is whether to wait until closer to the date of new build to sell our current primary OR sell now and lock in a price.

I realize interest rates will be increasing and a war that could get worse and impact RE. I understand no one has the crystal ball but wondering what most people will do.

Feel free to vote!

Basically same as you right now.. but on the other side of the previous poster. I didn't sell yet but I dont have a solid closing date on the precon either. (It's been waiting for 4 years and builder said it "might" close end of year).

You are not going to be able to sell at the top. But to sell now or not, will depend on your living conditions. Will you need to rent if you sold? Or you can bunk with rents for a few months?

If you rent anyways, then don't sell cause your just paying similar or more but on someone else's house.

At the end of the day, it's a judgement call and you can't look back. For me.. I am not selling till 3 months before my closing.