Owning two houses in a down market
How tough is it to sell even a fairly priced house in today’ s market? That depends on a variety of factors, of course: A house’s location, quality and neighborhood will all impact how long it takes for a house to sell.
But judging by the number of people I know who are currently stuck with two houses, selling is more difficult than ever.
One couple whom I know are struggling mightily to sell a small, three-bedroom ranch home. The problem is, they’ve already moved into a newer home in a new subdivision. Paying two mortgages is no easy task, and this couple is getting desperate.
They haven’t yet resorted to trying to rent the house. I’ve seen many homes in my community whose “For Sale” signs have turned into “For Rent” signs. That’s never good news for the home’s owners.
Selling a house while trying to buy another is never an easy task. It’s almost impossible to coordinate the pair of real estate transactions perfectly. When my family and I did this two years ago, we had to rent for eight weeks before moving into our new home. It was a pain. But it doesn’t compare to the pressure of making two mortgage payments at once.
A few years ago, this wasn’t as much of a problem. Homeowners could buy their new residences while confident that a buyer would quickly snatch up their current home. That is no longer the case. A growing number of homeowners are paying for two homes at once.
If that’s not the true sign of a housing downturn, then I don’t know what is.
