I recently mentioned that our house was on the market, so I figured I would put an update as to what was going on.
Our Home Sale
Not surprisingly, the non-profit in charge of selling the home did absolutely nothing for us. Anyone work for a non-profit out there? Why do they move slower than a government agency!? I actually ended up getting into an aggressive email discussion with them about their inefficiencies. Regardless of the details, I ended up backing off since I still will need their help.
So after giving them about a month to hopefully do what they are in existence to do, The Wife and I decided to make up our own flyers for 20 bucks and give them to the 100 or so homes in our neighborhood that were not in the same income based program.
We received 4 great leads:
- 27 Year Old couple both teachers in the city
- 41 year old couple – second marriage Wife owned a home before Husband’s name was on it
- 52 Year old divorced male
- Elderly Indian woman
Few details that you may not remember:
- Purchaser has to be a first time home buyer (or not have owned a home in the previous 5 years)
- There is a maximum Sales price of about $306ish
In the time span of about a week all of the leads saw the home the home. #2 immediately set up a second showing and told us they will beat any offer…BOOM WE HAVE THE MAXIMUM. Not sure that was the best negotiating technique but they want it and know that I can’t really go higher than that so they wanted to ensure they would get the home. Couple Number 1 calls me a few hours later and offers $285,000. I let him know that I really want to sell it to him since he is the perfect candidate for the program that this home was made for – young couple/individual who want to stay in the Town of Oyster Bay (Nassau County) but can’t afford the ridiculous prices. That being said, I wasn’t taking a hair cut to let him have the opportunity, so he upped it to $290K. I let him know that it wasn’t going to happen and if he figures out a way to get me the max he can call me. He hasn’t called back.
Option #3 is interesting. He (and his parents who saw the house first when they were walking around the neighborhood) have mentioned multiple times that their offer would be a “cash offer.” I know why that would me out but I am not balancing two mortgages, so if I have to wait a few weeks longer to close, then I wait. I am not sure what is going to happen with him but I am giving him another 18 hours to get me a number. Option #4 I feel pretty bad about. She is an elderly woman who said she wanted to wait for her son to come back from India before she made an offer, but he doesn’t come back till May 4th. I want to start to make moves this week, so The Wife and I have to discuss if we are just going to let her go.
This week The Wife and I will decide who to send to the non-profit who operates our section of the neighborhood. That non-profit will sit down with them and talk to them about getting a mortgage (if needed) and generally talks to them about owning a home. It is a formality with our buyers, but again the non-profit lives in the world of inefficiency and I am not going to change them so I will play by their rules.
Our Home Purchase
This side of the equation is a bit more tricky. The first problem The Wife and I are facing is deciding between two specific towns:
- Town 1 has higher home prices and for that higher price you get less for your money, but it is the town we live in now so nothing in our life would change. I would still have a bad ass commute to work, my parents would be able to watch my child at a moment’s notice, and the most important to me, I can come home for lunch to see The Wife and my son
- Town 2 has lower home prices and for that lower amount you get even more for your money! The cons is obviously that it is about 10 miles or so and if you have battled the Long Island Expressway Traffic 10 miles turns my commute into about 25 mins with traffic. A terrible number? No way! But it essentially ends me coming home for lunch.
Both towns have fantastic schools although Town 1 has a socioeconomic make up that some wouldn’t want their children to grow up in. Specifically, it is an affluent area where the net worth of some of the children will be more than mine! I grew up in a town like this, my car looked very out of place in the school parking lot (but damn it I loved that thing). I had a great childhood so maybe I am assuming my kid will as well? My brother on the other hand has made it clear he would never choose Town 1 as he didn’t like growing up in that environment.
Regardless I will give credit where it is due. The Wife has been researching homes for the past 60 days or so (probably longer if you consider her love of looking at houses), and I am just checking-in emotionally and mentally since I refused to get involved until we have a buyer (which we know have). As you can imagine this probably causes a lot of justified frustration on her part…
Once we narrow down a few houses and put some bids in I will post pictures!
I’m curious as to why all of the restrictions. Is it because of the non-profit you are working with?
There were even more restrictions when I bought the place (and for the first 60 days it was on for sale).
When I bought the place I had to make less than $76,200…I made $75K (without bonuses which didn’t count since they weren’t on my tax return yet). Also, The Wife and I weren’t married yet so she is no where on the property.
It is a government program (Town of Oyster Bay) administered by a non-profit. So you have two entities that move as slow as molasses lol.
Go with the best school district for sure!
Will it be weird that you will have to pay market price for a home and no longer receive government subsidized housing benefits?
What is the gov’t program called again? And is there an income limit to qualify? I’m on a mission to try and get as much government benefits as possible and housing would be a great one!
4 more years!
They both have a GREAT school district…both have 95%+ college rates…one is made up of a lot more affluent and thus potentially snobby people. I grew up in a town like that but had a different experience then my brother.
The gov’t program is ran by the town and since you are on the other side of the country I doubt its called the same thing. It was income based but at the time I just started working and wasn’t married so I just got in (see above response to Daisy).
It isn’t really weird since after the purchase of the home there weren’t really any interactions with any gov’t or non-profit entity. Just went along owning a normal townhouse.
I WISH I could rent it, but there are deed restrictions against it. I would have refinanced and rented it, but I can’t.
Got it. The $75,000 is a pretty high limit it sounds like, so I would imagine MOST people would qualify for this no?
Do I have to be a first time home buyer?
What if you are married and your wife has never bought? Perhaps better to have a partner who has never bought, to be able to buy?
I don’t know about the upside restrictions though in a bull market. That would suck if you could only make X amount, while others mad X + 100%.
$75K in terms of living, yes sort of a high limit but then they still have to get a mortgage.
At the time I had a real problem with debt to income ratio. I had a car note plus (still have) student loan debt…so my DTI was really high since I couldn’t include The Wife’s income.
Yes you have to be a first time homebuyer or not have owned in 5 years. That restriction stays but the income dropped after 60 days and the failure of the non-profit.
The home increases in value as incomes in this town go up (it is 3 times the median of the town). So while most got their teeth kicked in over the past few years, I am actually pulling out a little over 50K in profits over 5 years.
I hear you on the affluent town part. You want to think you raise your children well so they don’t worry about “stuff” but when they are in school and everyone else has certain clothes, toys, after school activities, etc. that they don’t have, well it’s tough.
Good luck on the sale and finding a new place.
Even when you pick one person, let the others know that anything can happen. We thought we had one buyer but ended up using another because their situation was more definite in getting a mortgage.
Considering you are in the same part of the State nevertheless the Country you know what I am talking about with affluence that some towns have! I don’t think it really negatively affected me emotionally, but I that is clearly not the case for my brother.
The falling through on the sale SCARES THE SHIT OUT OF ME! It is like what happens if my buyer falls through…I am going to be stuck with 2 mortgages. My Stomach turns just thinking about it
One option is to sell and then rent for a bit until you find a place you truly love.
Also, you can set up the buy for the new place such that it won’t go through until your current sale completes. Though I’d imagine sellers frown on those agreements these days. Still, if you have the credit to buy they may take it.
What towns are they? If you don’t want to reveal, I’m curious which towns you are referring to.
I e-mailed you. I don’t need any crazy stalker types finding me.
I wonder if this program exists in NJ… I now have something to look into, although I am not sure I want to buy since it is highly likely that we will be moving in 2-3 years. Good luck finding the new home.
If you are going to moving in 2-3 years don’t buy it is unlikely you’ll ever recap costs going in on the home (unless you may rent it out).
I didn’t know you were in NJ! What part of Dirty Jerz?
Glad that everything is going so well for you evan – hopefully you’ll make a decision. However I will point out that if you’re tired of traffic but do choose the 10 mile away property, you can cancel that krav maga class and get yourself a bike! then ride to work.
HAHAHAHAHHAH I am 4 miles now and I don’t bike it! I have given thought to it, but my question is – what do you do with the suit? I’d be wrinkled and sweaty
This is really interesting — I would love to hear more about things like this. There are non-profits that help people buy houses? And do you have to use them because that’s how you got your house in the first place?
Yup, and Yup. It was a program created by the town where I lived administered by the Non-Profit
Thanks for the update. Can’t wait for the next one.
Interesting update. Good luck with the house search. I’ve never been in the rich town situation so no input there. As long as the schools are good, I think either one is ok.
Yeah both schools are fantastic
This sounds so excellent…and the whole nonprofit running the down thing? That sounds like you live on some other planet from me.
Are you allowed to take back-up offers? So if, heaven forfend, the deal on the table right now falls through, maybe one of the other two wannabe buyers could step up.