After nearly six years in our current home, my wife and I decided early in 2017 to sell and buy a bigger place. I went online looking for PF posts from people who had shared their experience of buying and selling simultaneously, or other blogs or resource discussing the process and economics of doing both transactions at once, and I couldn’t find much. Since I track my spending closely, as well as my calendar, I realized I could pull something together to help others in the future. Below, I’ll lay out the basics of what we were doing, some items that were unique to our situation, and then a blow-by-blow of the process, every penny spent, and the net impact on our finances every step of the way.
Your process will be different from mine. Your numbers will be different, too. This isn’t meant to be a definitive, end-all-be-all guide, but rather a view into what we experienced and what it took for us to get through this. Hopefully it is helpful to anyone heading into a simultaneous sale and purchase and looking to find out what to expect along the way.
A Primer on the Purchase and Sale Process
Because I’ve seen some confusion in the past, here, in very broad strokes, are the steps involved in selling and buying a home:
Selling:
1 - Hire an agent
2 - Prepare your home for sale
3 - List the property
4 - Show the property
5 - Get offers (and negotiate as necessary)
6 - Accept an offer
7 - Agree on Purchase & Sale (P&S) Agreement terms
8 - Move out
9 - Close the sale, take the money, and hand over the keys
Buying:
1 - Get pre-approved for a mortgage and determine what you can afford
2 - Hire an agent
3 - Tour properties and attend open houses
4 - Make an offer (and negotiate as necessary)
5 - Agree on offer terms
6 - Get a home inspection
7 - Agree on P&S Agreement terms
8 - Get a mortgage
9 - Close the sale, write a big check, and take the keys
10 - Move in
The P&S is usually signed a week after the offer is accepted. The closing is usually 35-40 days after the P&S is signed.
The added complication when doing both things simultaneously is to line up the steps in a way in which you reduce financial risk while also avoiding a period of homelessness.
Our Background
We purchased our first home (a condo) in the Boston area in late 2011 for approximately $450,000. Did a cash-out refinance in summer 2015. Sold it for $700,000 in summer 2017. As part of our sale, we negotiated use and occupancy of our home for three weeks post-sale.
Purchased our new house (a single-family) in the Boston area for $700,000 in summer 2017.
As a requirement for a new mortgage (and, frankly, because of my risk tolerance!) we couldn’t own two homes at the same time – we had to complete the sale of our first home before we could complete the purchase our new home. Ultimately, we made an offer to purchase our new home the day we signed the P&S on our first home, and we closed the sale of our first home a week to the day before we closed the purchase of our new home.
Work Necessary to Sell Our First Home
Generally, you will need to do some work (structural or cosmetic) on your current home to make it sellable, or in an effort to increase the sale price. For us, there were four main buckets of work:
1 - Empty the condo of a lot of our stuff. We had to do this both to give us the ability to more easily refinish our floors and repaint, and so our home looked more attractive and larger in photos and during tours and open houses. In our case, we purchased some boxes for $55, and rented a large storage unit near us at a cost of $268 a month for four months, for a total cost of $1,127.
2 - In the process of emptying our condo, we decided to get rid of three old wardrobes and nine bookcases. We disassembled them ourselves, but hired 1-800-Got-Junk to remove them at a cost of $358. We moved a lot of clothing to storage, but still needed something to organize what was left, and ultimately replaced the wardrobes with a new dresser at a cost of $411.
3 - We repainted our entire condo, and built three new radiator covers. We did all this ourselves, and had material costs of about $535.
4 – We hired someone to refinish and repair our floors, which were nearly 100 years old and needed a lot TLC. In addition to the direct costs of this work, this also involved my family moving into a hotel for the better part of a week while the work was done. Total costs of $6,095.
Other Items of Note
We interviewed three potential real estate agents for our sale, and ultimately decided to hire a Redfin agent. Our buyer’s agent in the process was a different Redfin agent, the same individual we had used to purchase our first home. (One specialized in buying, the other in selling, which is why we have two different agents. You might be able to do both transactions with the same agent.) I mention this not as a plug for Redfin (although I am a very happy customer) but because the economics of using Redfin are different than most traditional realtors. You’ll see an atypically low seller’s agent commission (1.5%) in the list of expenses below, as well as a buyer’s agent rebate ($4,367) that is unique to Redfin.
When selling a home, the seller pays both real estate agents (yours and the buyers) out of the sale proceeds. The amount you pay, a percentage of the sale price, is negotiable. We sold in a very hot market, and as such, only offered 2% to the buyer’s agent during our sale process. Elsewhere, this could be as high as 3% or more.
To have a more competitive offer on our new home, we waived the home inspection. If you are in a market where inspections are still common and accepted, it would normally take place between the acceptance of the initial offer, and the acceptance of the P&S. In our case, I knew I wanted an inspection for my own knowledge, if not for negotiating purposes, so we had one completed between the P&S agreement and final closing. The sellers allowed us access to complete it, and we made clear to them that it was for our informational purposes only, and wouldn’t be used for any negotiations. Ultimately, because of the age of the new home (~120 years), our home insurance company required a copy of the inspection report to insure the property, so it got double use.
Lastly, there are a few unique issues when selling a condo. The buyer’s mortgage company typically requires the seller to complete a notarized condo association questionnaire. Sellers must also produce a notarized 6D Certification, which states that they have no outstanding financial obligations to the condo association or the management company. You’ll see line items below for having our management company complete the paperwork for us for a small fee.
Events, Expenses, and Net Impact on our Finances
Day
Vendor / Event
Expense
Income
Net Impact
Notes
1
Got mortgage pre-approval
4
Decided to sell/buy
5
Interviewed Realtor #1
16
Interviewed Realtor #2 (Redfin)
22
Interviewed Realtor #3
25
Home Depot
$ 215.41
$ (215.41)
Sale: Paint, supplies, etc.
25
Self Storage
$ 268.00
$ (483.41)
Sale: Storage unit - Month 1
25
Self Storage
$ 8.00
$ (491.41)
Sale: Storage unit lock
27
Agreed to Sell with Redfin
30
Uhaul
$ 55.20
$ (546.61)
Sale: Boxes
32
Star Market
$ 16.00
$ (562.61)
Sale: Newspapers for wrapping glasses, plates
34
800 Got Junk
$ 209.00
$ (771.61)
Sale: Book case removal
39
Home Depot
$ 62.56
$ (834.17)
Sale: Paint, supplies, etc.
40
Home Depot
$ 98.79
$ (932.96)
Sale: Paint, supplies, etc.
45
Home Depot
$ 47.88
$ (980.84)
Sale: Paint supplies
49
Target
$ 63.28
$ (1,044.12)
Sale: Furniture pads
51
Hotel
$ 2,144.95
$ (3,189.07)
Sale: Hotel while floors are being refinished
51
Floor Refinishing Company
$ 3,600.00
$ (6,789.07)
Sale: Floor refinishing
53
IKEA
$ 411.13
$ (7,200.20)
Sale: New dresser, etc.
54
Home Depot
$ 59.19
$ (7,259.39)
Sale: Paint, supplies, etc.
55
Home Inspection by Realtor Ahead of Photos
56
Home Depot
$ 5.99
$ (7,265.38)
Sale: Glass glue to repair broken ceiling light
57
Star Market
$ 10.00
$ (7,275.38)
Sale: Flowers for staging
57
Self Storage
$ 268.00
$ (7,543.38)
Sale: Storage unit - Month 2
57
Photos Taken for Home Sale Listing
60
Home Depot
$ 180.69
$ (7,724.07)
Sale: Radiator wood, paint
61
Home Depot
$ 19.57
$ (7,743.64)
Sale: Radiator wood
63
800 Got Junk
$ 149.00
$ (7,892.64)
Sale: Dresser removal
63
Home Depot
$ 67.20
$ (7,959.84)
Sale: Radiator wood, paint
64
Listed Current Home for Sale
66
Private Tours
67
Open House
68
Open House
69
Private Tours
70
Offer Accepted to Sell Current Home
70
Initial Deposit from Buyers
$ 1,000.00
$ (7,959.84)
Sale: Held in escrow until closing
73
Condo Management Company
$ 65.00
$ (8,024.84)
Sale: Prepping condo association questionnaire
80
Floor Refinishing Company
$ 350.00
$ (8,374.84)
Sale: Floor repairs
80
Current City
$ 50.00
$ (8,424.84)
Sale: State-mandated smoke detector inspection
80
P&S Deposit from Buyers
$ 34,000.00
$ (8,424.84)
Sale: Held in escrow until closing
80
Signed P&S Agreement on Old Home
80
Made Offer to Purchase New Home
81
Offer Accepted to Purchase New Home
81
Seller's Real Estate Agent (for Escrow)
$ 1,000.00
$ (9,424.84)
Purchase: Initial Deposit on New Home
85
Condo Management Company
$ 50.00
$ (9,474.84)
Sale: 6D Form (all obligations to condo association paid off)
85
Condo Management Company
$ 492.91
$ (9,967.75)
Sale: August Condo Fee Pre-Pay (necessary to release 6D)
87
Signed P&S Agreement on New Home
87
Self Storage
$ 268.00
$ (10,235.75)
Sale: Storage unit - Month 3
87
Seller's Real Estate Agent (for Escrow)
$ 34,000.00
$ (44,235.75)
Purchase: P&S Deposit on New Home
90
FedEx
$ 33.50
$ (44,269.25)
Purchase: Overnighting mortgage application documents
90
Mortgage Company
$ 408.00
$ (44,677.25)
Purchase: Mortgage processing fee (assessment, etc.)
97
Notary
$ 50.00
$ (44,727.25)
Sale: Document notarization (deed transfer, power of attorney, etc.)
98
USPS
$ 1.40
$ (44,728.65)
Sale: Postage for legal docs
98
Receive mortgage commitment letter
98
Current City
$ 40.00
$ (44,768.65)
Both: Moving permit (needed at current home)
111
Complete Inspection of New Home
111
Home Inspector
$ 800.00
$ (45,568.65)
Purchase: Home inspection
111
Home Insurance Company
$ 1,630.00
$ (47,198.65)
Purchase: Homeowners insurance, 12-month pre-pay
111
Buyers Complete Pre-Sale Walk Through
115
Complete Sale of Old Home
115
Sale Price of Property
$ 700,000.00
$ 652,801.35
Sale: Mortgage, bank payment, release of deposits
115
Buyer Reimbursement of Condo Fee
$ 333.91
$ 653,135.26
Sale: Reimbursement of remainder of August condo fee
115
Recording Fees and Transfer Taxes
$ 3,192.00
$ 649,943.26
Sale: Closing costs
115
Discharge Tracking Fee
$ 95.00
$ 649,848.26
Sale: Closing costs
115
Overnight Payoff Fee
$ 15.50
$ 649,832.76
Sale: Closing costs
115
Buyer's Broker Payment
$ 14,000.00
$ 635,832.76
Sale: Closing costs: 2.0% of sale price
115
Seller's Broker Payment
$ 10,500.00
$ 625,332.76
Sale: Closing costs: 1.5% of sale price
115
Record 6D
$ 75.00
$ 625,257.76
Sale: Closing costs
115
Record Discharge
$ 75.00
$ 625,182.76
Sale: Closing costs
115
Wire Transfer Fee
$ 50.00
$ 625,132.76
Sale: Closing costs
115
Payoff of Mortgage
$ 467,591.40
$ 157,541.36
Sale: Closing costs
115
Seller Credit
$ 2,000.00
$ 155,541.36
Sale: Closing costs
115
Use & Occupancy Holdback
$ 5,000.00
$ 150,541.36
Sale: Closing costs
115
Legal Fee to Seller's Attorney
$ 750.00
$ 149,791.36
Sale: Closing costs
115
City Taxes
$ 457.73
$ 149,333.63
Sale: Closing costs
115
Wire Transfer Fee (BofA)
$ 60.00
$ 149,273.63
Sale: To accept the transfer into my account
118
Self Storage
$ 268.00
$ 149,005.63
Sale: Storage unit - Month 4
118
Receive initial closing disclosure for purchase
118
Receive "clear to close" from mortgage bank
120
Transfer money for closing to escrow ($113,221.53)
121
U-Haul
$ 96.11
$ 35,687.99
Both: Boxes for packing
122
Complete Purchase of New Home
122
Loan Origination Fee
$ 895.00
$ 148,110.63
Purchase: Closing costs
122
Credit Report
$ 75.00
$ 148,035.63
Purchase: Closing costs
122
Hazard Insurance Tracking
$ 31.00
$ 148,004.63
Purchase: Closing costs
122
Tax Service Fee
$ 93.00
$ 147,911.63
Purchase: Closing costs
122
Title - Closing/Escrow Fee
$ 650.00
$ 147,261.63
Purchase: Closing costs
122
Title - Municipal Lein Certificate
$ 25.00
$ 147,236.63
Purchase: Closing costs
122
Title - Survey
$ 125.00
$ 147,111.63
Purchase: Closing costs
122
Title - Title Examination Fee
$ 250.00
$ 146,861.63
Purchase: Closing costs
122
Title - Title Insurance
$ 1,400.00
$ 145,461.63
Purchase: Closing costs
122
Recording Fees
$ 400.00
$ 145,061.63
Purchase: Closing costs
122
Prepaid Interest
$ 751.78
$ 144,309.85
Purchase: Closing costs
122
Property Taxes
$ 1,265.52
$ 143,044.33
Purchase: Closing costs
122
Homestead Prep Fee
$ 75.00
$ 142,969.33
Purchase: Closing costs
122
Title - Owners Title Insurance
$ 1,575.00
$ 141,394.33
Purchase: Closing costs
122
City/Town Taxes
$ 610.23
$ 140,784.10
Purchase: Closing costs
122
Additional Funds From Buyer
$ 105,000.00
$ 35,784.10
Purchase: In addition to $35,000 deposit and $560,000 mortgage
122
Seller Rebate for Contract Violation
$ 500.00
$ 36,284.10
Purchase: House not completely cleaned out
124
U-Haul
$ 238.61
$ 36,045.49
Both: To move things out of storage unit
129
Moving Company
$ 2,030.00
$ 34,015.49
Both
140
Redfin Rebate
$ 4,367.49
$ 38,382.98
Purchase: Rebate from buyer's agent
165
Security Deposit Repaid by Buyer
$ 5,000.00
$ 43,382.98
Sale: Refund of security deposit paid for use of condo after sale
Take-Aways
Every purchase and sale is different. In our case, from start to finish, the process took a bit over four months, and required us to pay just about $50,000 out of pocket before we received the proceeds from our sale and turned cash positive. Your transaction might go faster or slower, cost more or less, but it’s important to realize that these things take time, and require you to put up some amount of money along the way. Plan ahead, and have money available.
Interview multiple real estate agents. We were convinced we were going to work with the first person we met with, a traditional broker who had a great track record of selling condos in our building. When we met her, she was a total dud – unenthusiastic, off on her numbers, etc. Honestly, it sent us reeling and wondering if we were totally wrong on our understanding of our home’s value. The second and third brokers we interviewed were much, much better.
Expect that things will go wrong. (When we did our inspection a few hours before buying our new place, we found that the previous owners had moved out while leaving a ton of their stuff behind. Thanks, guys!) Roll with it when they do. Rely on your agent, mortgage broker, and lawyer – they’ve seen it all and know what to do.
If you’re married or otherwise partnered, I would strongly recommend that one of you be in charge of the purchase and sale. It makes life easier for everyone you work with if they have a single person to go to, rather than wondering if they need to hear back from both of you. It also guarantees that no one makes a decision having missed an important piece of information. If you do this, the other spouse/partner has to be completely bought in to the idea.
Lastly, and perhaps most importantly: You’ll see that we sold our first home for the exact same amount we purchased our new home. By moving two towns over, we got three times as much space, a detached two-car garage, and a nice yard, for the exact same dollar value. Buyers often get fixated on a specific town or neighborhood and don’t look nearby. Take the time to look – small distances can make huge differences.
Your process will be different from mine. Your numbers will be different, too. This isn’t meant to be a definitive, end-all-be-all guide, but rather a view into what we experienced and what it took for us to get through this. Hopefully it is helpful to anyone heading into a simultaneous sale and purchase and looking to find out what to expect along the way.
A Primer on the Purchase and Sale Process
Because I’ve seen some confusion in the past, here, in very broad strokes, are the steps involved in selling and buying a home:
Selling:
1 - Hire an agent
2 - Prepare your home for sale
3 - List the property
4 - Show the property
5 - Get offers (and negotiate as necessary)
6 - Accept an offer
7 - Agree on Purchase & Sale (P&S) Agreement terms
8 - Move out
9 - Close the sale, take the money, and hand over the keys
Buying:
1 - Get pre-approved for a mortgage and determine what you can afford
2 - Hire an agent
3 - Tour properties and attend open houses
4 - Make an offer (and negotiate as necessary)
5 - Agree on offer terms
6 - Get a home inspection
7 - Agree on P&S Agreement terms
8 - Get a mortgage
9 - Close the sale, write a big check, and take the keys
10 - Move in
The P&S is usually signed a week after the offer is accepted. The closing is usually 35-40 days after the P&S is signed.
The added complication when doing both things simultaneously is to line up the steps in a way in which you reduce financial risk while also avoiding a period of homelessness.
Our Background
We purchased our first home (a condo) in the Boston area in late 2011 for approximately $450,000. Did a cash-out refinance in summer 2015. Sold it for $700,000 in summer 2017. As part of our sale, we negotiated use and occupancy of our home for three weeks post-sale.
Purchased our new house (a single-family) in the Boston area for $700,000 in summer 2017.
As a requirement for a new mortgage (and, frankly, because of my risk tolerance!) we couldn’t own two homes at the same time – we had to complete the sale of our first home before we could complete the purchase our new home. Ultimately, we made an offer to purchase our new home the day we signed the P&S on our first home, and we closed the sale of our first home a week to the day before we closed the purchase of our new home.
Work Necessary to Sell Our First Home
Generally, you will need to do some work (structural or cosmetic) on your current home to make it sellable, or in an effort to increase the sale price. For us, there were four main buckets of work:
1 - Empty the condo of a lot of our stuff. We had to do this both to give us the ability to more easily refinish our floors and repaint, and so our home looked more attractive and larger in photos and during tours and open houses. In our case, we purchased some boxes for $55, and rented a large storage unit near us at a cost of $268 a month for four months, for a total cost of $1,127.
2 - In the process of emptying our condo, we decided to get rid of three old wardrobes and nine bookcases. We disassembled them ourselves, but hired 1-800-Got-Junk to remove them at a cost of $358. We moved a lot of clothing to storage, but still needed something to organize what was left, and ultimately replaced the wardrobes with a new dresser at a cost of $411.
3 - We repainted our entire condo, and built three new radiator covers. We did all this ourselves, and had material costs of about $535.
4 – We hired someone to refinish and repair our floors, which were nearly 100 years old and needed a lot TLC. In addition to the direct costs of this work, this also involved my family moving into a hotel for the better part of a week while the work was done. Total costs of $6,095.
Other Items of Note
We interviewed three potential real estate agents for our sale, and ultimately decided to hire a Redfin agent. Our buyer’s agent in the process was a different Redfin agent, the same individual we had used to purchase our first home. (One specialized in buying, the other in selling, which is why we have two different agents. You might be able to do both transactions with the same agent.) I mention this not as a plug for Redfin (although I am a very happy customer) but because the economics of using Redfin are different than most traditional realtors. You’ll see an atypically low seller’s agent commission (1.5%) in the list of expenses below, as well as a buyer’s agent rebate ($4,367) that is unique to Redfin.
When selling a home, the seller pays both real estate agents (yours and the buyers) out of the sale proceeds. The amount you pay, a percentage of the sale price, is negotiable. We sold in a very hot market, and as such, only offered 2% to the buyer’s agent during our sale process. Elsewhere, this could be as high as 3% or more.
To have a more competitive offer on our new home, we waived the home inspection. If you are in a market where inspections are still common and accepted, it would normally take place between the acceptance of the initial offer, and the acceptance of the P&S. In our case, I knew I wanted an inspection for my own knowledge, if not for negotiating purposes, so we had one completed between the P&S agreement and final closing. The sellers allowed us access to complete it, and we made clear to them that it was for our informational purposes only, and wouldn’t be used for any negotiations. Ultimately, because of the age of the new home (~120 years), our home insurance company required a copy of the inspection report to insure the property, so it got double use.
Lastly, there are a few unique issues when selling a condo. The buyer’s mortgage company typically requires the seller to complete a notarized condo association questionnaire. Sellers must also produce a notarized 6D Certification, which states that they have no outstanding financial obligations to the condo association or the management company. You’ll see line items below for having our management company complete the paperwork for us for a small fee.
Events, Expenses, and Net Impact on our Finances
1
Got mortgage pre-approval
4
Decided to sell/buy
5
Interviewed Realtor #1
16
Interviewed Realtor #2 (Redfin)
22
Interviewed Realtor #3
25
Home Depot
$ 215.41
$ (215.41)
Sale: Paint, supplies, etc.
25
Self Storage
$ 268.00
$ (483.41)
Sale: Storage unit - Month 1
25
Self Storage
$ 8.00
$ (491.41)
Sale: Storage unit lock
27
Agreed to Sell with Redfin
30
Uhaul
$ 55.20
$ (546.61)
Sale: Boxes
32
Star Market
$ 16.00
$ (562.61)
Sale: Newspapers for wrapping glasses, plates
34
800 Got Junk
$ 209.00
$ (771.61)
Sale: Book case removal
39
Home Depot
$ 62.56
$ (834.17)
Sale: Paint, supplies, etc.
40
Home Depot
$ 98.79
$ (932.96)
Sale: Paint, supplies, etc.
45
Home Depot
$ 47.88
$ (980.84)
Sale: Paint supplies
49
Target
$ 63.28
$ (1,044.12)
Sale: Furniture pads
51
Hotel
$ 2,144.95
$ (3,189.07)
Sale: Hotel while floors are being refinished
51
Floor Refinishing Company
$ 3,600.00
$ (6,789.07)
Sale: Floor refinishing
53
IKEA
$ 411.13
$ (7,200.20)
Sale: New dresser, etc.
54
Home Depot
$ 59.19
$ (7,259.39)
Sale: Paint, supplies, etc.
55
Home Inspection by Realtor Ahead of Photos
56
Home Depot
$ 5.99
$ (7,265.38)
Sale: Glass glue to repair broken ceiling light
57
Star Market
$ 10.00
$ (7,275.38)
Sale: Flowers for staging
57
Self Storage
$ 268.00
$ (7,543.38)
Sale: Storage unit - Month 2
57
Photos Taken for Home Sale Listing
60
Home Depot
$ 180.69
$ (7,724.07)
Sale: Radiator wood, paint
61
Home Depot
$ 19.57
$ (7,743.64)
Sale: Radiator wood
63
800 Got Junk
$ 149.00
$ (7,892.64)
Sale: Dresser removal
63
Home Depot
$ 67.20
$ (7,959.84)
Sale: Radiator wood, paint
64
Listed Current Home for Sale
66
Private Tours
67
Open House
68
Open House
69
Private Tours
70
Offer Accepted to Sell Current Home
70
Initial Deposit from Buyers
$ 1,000.00
$ (7,959.84)
Sale: Held in escrow until closing
73
Condo Management Company
$ 65.00
$ (8,024.84)
Sale: Prepping condo association questionnaire
80
Floor Refinishing Company
$ 350.00
$ (8,374.84)
Sale: Floor repairs
80
Current City
$ 50.00
$ (8,424.84)
Sale: State-mandated smoke detector inspection
80
P&S Deposit from Buyers
$ 34,000.00
$ (8,424.84)
Sale: Held in escrow until closing
80
Signed P&S Agreement on Old Home
80
Made Offer to Purchase New Home
81
Offer Accepted to Purchase New Home
81
Seller's Real Estate Agent (for Escrow)
$ 1,000.00
$ (9,424.84)
Purchase: Initial Deposit on New Home
85
Condo Management Company
$ 50.00
$ (9,474.84)
Sale: 6D Form (all obligations to condo association paid off)
85
Condo Management Company
$ 492.91
$ (9,967.75)
Sale: August Condo Fee Pre-Pay (necessary to release 6D)
87
Signed P&S Agreement on New Home
87
Self Storage
$ 268.00
$ (10,235.75)
Sale: Storage unit - Month 3
87
Seller's Real Estate Agent (for Escrow)
$ 34,000.00
$ (44,235.75)
Purchase: P&S Deposit on New Home
90
FedEx
$ 33.50
$ (44,269.25)
Purchase: Overnighting mortgage application documents
90
Mortgage Company
$ 408.00
$ (44,677.25)
Purchase: Mortgage processing fee (assessment, etc.)
97
Notary
$ 50.00
$ (44,727.25)
Sale: Document notarization (deed transfer, power of attorney, etc.)
98
USPS
$ 1.40
$ (44,728.65)
Sale: Postage for legal docs
98
Receive mortgage commitment letter
98
Current City
$ 40.00
$ (44,768.65)
Both: Moving permit (needed at current home)
111
Complete Inspection of New Home
111
Home Inspector
$ 800.00
$ (45,568.65)
Purchase: Home inspection
111
Home Insurance Company
$ 1,630.00
$ (47,198.65)
Purchase: Homeowners insurance, 12-month pre-pay
111
Buyers Complete Pre-Sale Walk Through
115
Complete Sale of Old Home
115
Sale Price of Property
$ 700,000.00
$ 652,801.35
Sale: Mortgage, bank payment, release of deposits
115
Buyer Reimbursement of Condo Fee
$ 333.91
$ 653,135.26
Sale: Reimbursement of remainder of August condo fee
115
Recording Fees and Transfer Taxes
$ 3,192.00
$ 649,943.26
Sale: Closing costs
115
Discharge Tracking Fee
$ 95.00
$ 649,848.26
Sale: Closing costs
115
Overnight Payoff Fee
$ 15.50
$ 649,832.76
Sale: Closing costs
115
Buyer's Broker Payment
$ 14,000.00
$ 635,832.76
Sale: Closing costs: 2.0% of sale price
115
Seller's Broker Payment
$ 10,500.00
$ 625,332.76
Sale: Closing costs: 1.5% of sale price
115
Record 6D
$ 75.00
$ 625,257.76
Sale: Closing costs
115
Record Discharge
$ 75.00
$ 625,182.76
Sale: Closing costs
115
Wire Transfer Fee
$ 50.00
$ 625,132.76
Sale: Closing costs
115
Payoff of Mortgage
$ 467,591.40
$ 157,541.36
Sale: Closing costs
115
Seller Credit
$ 2,000.00
$ 155,541.36
Sale: Closing costs
115
Use & Occupancy Holdback
$ 5,000.00
$ 150,541.36
Sale: Closing costs
115
Legal Fee to Seller's Attorney
$ 750.00
$ 149,791.36
Sale: Closing costs
115
City Taxes
$ 457.73
$ 149,333.63
Sale: Closing costs
115
Wire Transfer Fee (BofA)
$ 60.00
$ 149,273.63
Sale: To accept the transfer into my account
118
Self Storage
$ 268.00
$ 149,005.63
Sale: Storage unit - Month 4
118
Receive initial closing disclosure for purchase
118
Receive "clear to close" from mortgage bank
120
Transfer money for closing to escrow ($113,221.53)
121
U-Haul
$ 96.11
$ 35,687.99
Both: Boxes for packing
122
Complete Purchase of New Home
122
Loan Origination Fee
$ 895.00
$ 148,110.63
Purchase: Closing costs
122
Credit Report
$ 75.00
$ 148,035.63
Purchase: Closing costs
122
Hazard Insurance Tracking
$ 31.00
$ 148,004.63
Purchase: Closing costs
122
Tax Service Fee
$ 93.00
$ 147,911.63
Purchase: Closing costs
122
Title - Closing/Escrow Fee
$ 650.00
$ 147,261.63
Purchase: Closing costs
122
Title - Municipal Lein Certificate
$ 25.00
$ 147,236.63
Purchase: Closing costs
122
Title - Survey
$ 125.00
$ 147,111.63
Purchase: Closing costs
122
Title - Title Examination Fee
$ 250.00
$ 146,861.63
Purchase: Closing costs
122
Title - Title Insurance
$ 1,400.00
$ 145,461.63
Purchase: Closing costs
122
Recording Fees
$ 400.00
$ 145,061.63
Purchase: Closing costs
122
Prepaid Interest
$ 751.78
$ 144,309.85
Purchase: Closing costs
122
Property Taxes
$ 1,265.52
$ 143,044.33
Purchase: Closing costs
122
Homestead Prep Fee
$ 75.00
$ 142,969.33
Purchase: Closing costs
122
Title - Owners Title Insurance
$ 1,575.00
$ 141,394.33
Purchase: Closing costs
122
City/Town Taxes
$ 610.23
$ 140,784.10
Purchase: Closing costs
122
Additional Funds From Buyer
$ 105,000.00
$ 35,784.10
Purchase: In addition to $35,000 deposit and $560,000 mortgage
122
Seller Rebate for Contract Violation
$ 500.00
$ 36,284.10
Purchase: House not completely cleaned out
124
U-Haul
$ 238.61
$ 36,045.49
Both: To move things out of storage unit
129
Moving Company
$ 2,030.00
$ 34,015.49
Both
140
Redfin Rebate
$ 4,367.49
$ 38,382.98
Purchase: Rebate from buyer's agent
165
Security Deposit Repaid by Buyer
$ 5,000.00
$ 43,382.98
Sale: Refund of security deposit paid for use of condo after sale
Take-Aways
Every purchase and sale is different. In our case, from start to finish, the process took a bit over four months, and required us to pay just about $50,000 out of pocket before we received the proceeds from our sale and turned cash positive. Your transaction might go faster or slower, cost more or less, but it’s important to realize that these things take time, and require you to put up some amount of money along the way. Plan ahead, and have money available.
Interview multiple real estate agents. We were convinced we were going to work with the first person we met with, a traditional broker who had a great track record of selling condos in our building. When we met her, she was a total dud – unenthusiastic, off on her numbers, etc. Honestly, it sent us reeling and wondering if we were totally wrong on our understanding of our home’s value. The second and third brokers we interviewed were much, much better.
Expect that things will go wrong. (When we did our inspection a few hours before buying our new place, we found that the previous owners had moved out while leaving a ton of their stuff behind. Thanks, guys!) Roll with it when they do. Rely on your agent, mortgage broker, and lawyer – they’ve seen it all and know what to do.
If you’re married or otherwise partnered, I would strongly recommend that one of you be in charge of the purchase and sale. It makes life easier for everyone you work with if they have a single person to go to, rather than wondering if they need to hear back from both of you. It also guarantees that no one makes a decision having missed an important piece of information. If you do this, the other spouse/partner has to be completely bought in to the idea.
Lastly, and perhaps most importantly: You’ll see that we sold our first home for the exact same amount we purchased our new home. By moving two towns over, we got three times as much space, a detached two-car garage, and a nice yard, for the exact same dollar value. Buyers often get fixated on a specific town or neighborhood and don’t look nearby. Take the time to look – small distances can make huge differences.