I’m considering moving, not to a different location, but rather simply upgrading the house so we have more room for my expanding family. I’ve been pondering though that before the housing bubble burst, it was much easier to move from one house to another. You could sell your current house, and use the equity to cover the costs. Savings were needed (but not very much really) for the downpayment on your first house, but unless you needed to move really quickly, you shouldn’t have needed a ton of liquidity to move after that. Correct?
Anyway, to get to my question, what kind of savings do I need to sell my house and buy another one? Because I bought my first one as part of a corporate relocation, I was sheltered from some of the costs of buying, so I don’t know as much as I should. It looks to me like I would need to save for:
- Delta between my mortgage and what my house .will sell for (since I’m still underwater). I’m going by Zillow now, but I suppose I need an estimate from a realtor to really know
- Percentage of price of old house to realtor. What is that, 3%?
- Percentage of price of new house to realtor. 3% again? Could that be tacked onto the new mortgage?
- Cost of movers. What would they go for if its a local move? (furnishings for an 1800 sqft house)
- down payment on new house. What do they demand these days if you have excellent credit? Is it back to the traditional 15%? Could I get away with 5% and mortgage insurance?
- cost of any upgrades or changes to the new house
- If I wanted to buy a new house before selling the old, I’d have to consider the double mortgage and maintenance during the overlap. Which seems like a bad idea not knowing how long it will take to sell, but has some advantages too.
Have I captured this accurately? I’d love to take advantage of the great prices and low interest rates, but the liquid capital I would need seems onerous.