The following are three blog posts I researched and wrote for a realtor: Selling & Buying Unless you’re in it for the thrill of battle, there is only one reason for you to attempt a coordinated sale and purchase: You have to. You need to move and you can’t afford both mortgages. After all, if you had enough money to throw down for two mortgages each month, you wouldn’t be combing the web tirelessly for a solution. Many of us have been there. Like nearly everything else associated with home ownership, the next step depends mostly on you, with a few external influences. Before you go falling down the rabbit hole of possibilities, start here: Buyer’s Market VS Seller’s Market In short, a seller’s market looks like this:
A buyer’s market looks like this:
When you know your markets, you will be well-armed in your decision-making. It will be easier for you to decide which venture to take on first. Still, it won’t be a simple process. Picture this: You are selling in a seller’s market and buying in a buyer’s market. You are confident you can get the house you want and equally as confident that you can sell as quickly. You are sure, in this situation, that you will be able to coordinate closing dates so that you have enough time to move before your house belongs to someone else and you’re arrested for squatting. Except the real estate market, being an accurate gauge of local and world economics, is unstable. Suddenly, you have a person moving furniture into what was your house and you are putting your stuff into storage, asking a friend if you can rent their futon for a month. Sounds uncomfortable right? The point is, you can not predict what will happen, so you need to look at all of your options and be honest with what you’re comfortable with. Financial Options Selling first Rent-Back Agreement: You make a deal with both buyer and lender that will allow you to stay in the property for a maximum of 60-90 days. In a seller’s market, you’ll have an easier time convincing the starving buyer to agree. Otherwise, this is usually achieved by lowering the selling price or paying rent to the new owner(s). Buying first Contract Contingency: If you are buying in a buyer’s market, you may be able to request that the buying of your new home be contingent with the selling of your current home. (Hint: Take a look at how long the home has been on the market. This may give you leverage.) Bridge Loans: Think of this as a baby loan. You need money from selling to buy, but you need to buy first to ensure you aren’t renting that futon. This loan acts as your down payment and must be paid back upon sale of your first home. Warning: these loans have a deadline. Aside from financial options, you have other ones, as well. You can buy first and rent your home to someone on a short-term or monthly lease until you find a buyer. You may have difficulty getting pre-qualified, however, if you have a current mortgage. Setting up the rental agreement with a tenant ahead of time might ease a lender’s worry of how you will pay two mortgages. You can sell first. Put everything you don’t absolutely need in storage, stage your home, then take to a monthly rental while getting pre-qualified and searching for a new place. If you are worried about what kind of place would sublet for only a month, AIRBNB has a lot of listings for just this sort of thing. And they’re furnished! You could also make a list of relatives and friends you could stay with. Another option is a hotel that offers extended stays. The option you choose will be one that best suits you and your lifestyle, as well as your reason for buying and selling.
In the end, it all comes down to how flexible you can be and the environments you are working in. Take stock of your support group--friends and family, coworkers, neighbors. Most importantly, be well-informed and open minded. Renting VS Buying You’re staring at the off-white walls of your rental, waiting for your landlord to show up for a routine inspection and obsessing over your checklist like a student handing in a final exam. Is everything swept? Is the gutter free of leaves? Did I dust the top of the heater? (He scolded us last time-can’t forget!) You have a flashback of the night before--scrubbing the toilet until it was so clean your toddler could have licked it and you wouldn’t have had a meltdown--when you make the decision. I need to buy! Let’s face it, the stress of renting can equal the stress of owning. Although one isn’t necessarily better than the other, one is definitely better for YOU. So, which is it? Buying a home in the current market is not always the investment in equity it once was, but a major commitment to a lifestyle. If you plan on leaving in less than 5 years and think you’ll make a profit, most professionals will tell you to keep on renting. The same goes for anyone experiencing a lot of changes, whether it be fluctuating jobs or having a baby. Buying a house is stressful enough, it’s best when everything else is calm. It requires more thought and planning, as well as a desire to stay put for the time being, but ultimately allows more personal freedom. Philadelphia has a high rate of renters, but more young couples have been happily planting roots--spreading themselves out beyond center city and settling down. These people generally have a job they plan on staying with for awhile. They have doled out thousands on rental down payments, have become ninjas at moving all of their belongings year after year, and are ready to take control of decisions, such as what kind of appliances they use. Most importantly, they long for a feeling of groundedness. All of those things are what make a strong buyer, but what about the numbers? Rent and mortgage payments are not always easily comparable. There are many additional fees you need to include when buying a house. The principal interest, property taxes, and property insurance are all included in your monthly payment. Maintenance is suddenly more than just sending a quick email to your landlord. You need to shovel, take care of your lawn. In some cases, there is a homeowner's association that requires fees. You also get to plant a garden or paint those off-white walls something that looks a little less like a doctor’s waiting room. You can live in peace, knowing that your rent won’t be raised, or the owner’s won’t decide to sell. Mortgage interest and property taxes are tax deductible. Those who work from home may also be eligible for tax deductions on their home office and portions of their utility payments. Plus, you can finally throw out the moving boxes. Empty-Nesters
The kids have moved on. Your hallways are suddenly spared the echoes of silly bickering and your bathroom is almost always vacant. Everything seems so large and, as time goes on, unnecessary. Without the hustle and bustle of raising a family, the quiet streets seem extraordinarily boring. This is your time now, all of it. What do you want to do? More and more empty-nesters are tired of fixing leaky roofs, cleaning and landscaping, or paying others to do it for them. Their house becomes a burden of too many rooms that are longing to be filled with people again. Many are making the life changing decision to move back to the city. And be warned: it is life changing. You will downsize dramatically, but you will gain a lifestyle that leads to more freedom, less isolation, and less stuff. So, after half a lifetime spent working your way into safe neighborhoods with great schools and large yards, you may wonder--why Philly? Your needs have changed. Perhaps you want to be closer to your city-dwelling children, or would love to catch a play, grab a glass of wine, take an art class, and not have to plan an entire weekend around it? Whatever the reason, the city now has a lot to offer you. Since 2000, revitalization of Philadelphia has developed center city and its outlying neighborhoods into thriving spaces with tight knit communities and a ton of amenities. There is still more work to do, but the point is, it’s growing up, and its inhabitants care a whole lot about seeing it succeed. Universities have branched out, providing a wealth of jobs and investing in building up their surrounding neighborhoods. Dilworth Plaza, a large concrete pit inhabited mostly by pigeons, was renovated and reformed into Dilworth Park, a green landscape complete with Garces cafe and ice skating in the winter. Sister Cities Park transformed the small piece of land on the Benjamin Franklin Parkway into an incredible oasis with a playground, garden, cafe, fountain, and a space for rentals. Even the Divine Lorraine was finally saved from demolition and given the promise of a new life. Now more than ever it is obvious that Philadelphia’s government, investors, and people are taking charge to create the city they want. The city you want. So, where to begin? Let’s take a look at several neighborhoods that have seen an influx of happy empty-nesters moving into condos, apartments, and single family homes. Washington Square West What’s it all about? Considered one of Philly’s safest neighborhoods, its design promotes small, pedestrian friendly streets and less traffic. It’s park provides peaceful escape from the hustle and bustle, while playing host to markets and festivals year-round. It also boasts some of the greatest dining experiences in the city. Talula’s Garden has an ingredient specific concept, where everything is fresh and local. They have a daily market, where customers can grab and go and still support healthy lifestyles. American cuisine at The Farm and the Fisherman, asian fusion at Cheu Noodle Bar, brunch at Tria Cafe, Caribbean creations at Mixto, and countless more...you want it, they got it! What makes it different? Some of Philadelphia’s oldest attractions are located here, such as the famous Walnut Street Theatre, the oldest theater in the United States, and Antique Row. It is a mix of apartments, condos, and single family homes. The park provides peaceful escape from the hustle and bustle, while playing host to farmer’s markets and seasonal events. Is it for me? Are you craving the Rittenhouse experience but without all the people? This is perfect for you. It is walking distance to anything you might need (including a city park!) but removed enough from the center of the city to still feel like home. Avenue of the Arts What’s it all about? The stretch of broad street has undergone major transformations--a few noteworthy examples being the addition of the Kimmel Center, the revamping of Dilworth Park and the proposed renovation of the Ritz Carlton. The city is making it accessible to not only tourists but permanent residents by adding luxury apartments and condos. What makes it different? It sits in the middle of all the action, so you’ll always be in close proximity to galleries, performing arts, shopping, restaurants, hotels, cafes, and the famous Wilma Theatre. Shop at the Reading Terminal, take a quick walk to Rittenhouse or grab brunch in South Philly. It’s all nearby. Plus, you’ll have easy access to all modes of public transportation. Is it for me? If you are sick and tired of the quiet life and want to be in the middle of it all, this is your speed. The hustle and bustle, bright lights and stream of people will complete your city experience. After all, you can always relax in your condo. Rittenhouse Square What’s it all about? Rittenhouse Square is the oldest of these neighborhoods to have been scrubbed to a sparkle by demanding locals. It is a wonderful example of what can happen when a neighborhood bands together with business owners and local government to create the kind of environment they want. Now it is probably the most well-known park in the city. It is cocooned by one of a kind restaurants, local businesses, cafes, condos, and luxury apartments. It is not only close to shopping, but a mere leap across the street in any direction. The park hosts a spectacular farmer’s market, art fairs, and galas, not to mention an array of events all year round. What makes it different? The Rittenhouse community is strong. The small businesses have relationships with the locals, understanding that they wish to maintain a way of life that promotes beauty and quality, and create environments that do so. They often contribute to galas and fundraisers that are held in the park. It is quite the opposite of what you expect to find in the middle of a city, making it not only a desirable place to live, but a true commitment to a way of life. Is it for me? The original empty nester destination--it’s like Florida but way cooler. The park is perfect for the empty nester who is tired of isolation and craves to be near people--especially creative people. If your fantasy of living in the city involves your choice of store or glamorous boutique, artisanal bakeries, thriving local businesses, and a beautiful landscape--this is for you. Fairmount What’s it all about? Fairmount is a little like the suburbs of Center City, but it wasn’t always like that. Ten years ago, the area near Community College of Philadelphia was riddled with pockets of crime. Now, families stroll their babies and young couples sip beer on outside patios. Small businesses on Fairmount Ave are expanding furiously. The population is diverse and includes people of all ages and backgrounds. Plus, you have a pick of apartment, condo, or single family home. What makes it different? It is a bit more out of the way than the other neighborhoods, which makes it a great escape, even though you can still walk to the city. You can attend art classes at the Philly Art Center, grab an espresso, shop at an indoor market, eat out in one of its many restaurants, grab a cocktail, go to the Rodin Museum, Art Museum, or Barnes Foundation. Shop at whole foods. Go for a walk on the kelly drive “loop” or rent a bike. Go for a wild, historical tour of the Eastern State Penitentiary or Laurel Hill Cemetery. Do all of these things without leaving your neighborhood. Is it for me? Missing the trees? The suburbs ain’t got nothin’ on Fairmount Park. The neighborhood is just that--a neighborhood. If you want to grab a bus and be in center city in 10 minutes, but still want to leave it behind when you’re ready to go home, Fairmount Park is it. Fitler Square What’s it all about? Fitler Square remains posh and charming, keeping speed with its metropolitan locale while neatly blending in an intimacy one might associate with a small suburban town. It is close to restaurants, such as FDR and Tria, without being planted in the middle of it all. What makes it different? Philadelphia's Department of Parks and Recreation supplies annual plantings as well as contracts for services that include lawn mowing and tree and shrub care, gardening, and trash cleanup. It’s a short walk to Rittenhouse, where boutiques grow like dandelions. Further east is the shopping district on Chestnut and Walnut Streets. Is it for me? Do you dig Rittenhouse but hate the crowds? Wish you could walk a few blocks to center city but escape back into your quiet space? Fitler Square is it. Society Hill What’s it all about? A mix of apartments and single family homes, Society Hill provides a cozy setting among city life. Redeveloped and totally restored in the 1960s, it has remained a neighborhood of great character and pride. The business owners and residents are very involved with keeping the neighborhood respectable and beautiful. The area boasts well-known restaurants (Bridget Foy’s, Positano Coast, the Headhouse to name a few), a lively farmer’s market, plenty of small businesses, Ritz Theatres, Penn’s Landing, South Street, Society Hill Playhouse, and more. What makes it different? Society Hill is quaint and charming, with its cobblestone streets and Headhouse market (a restored original built in 1805 to offer shelter to merchants). It is also relatively quiet. Although a quick walk to many destinations, it exudes a peacefulness even in daytime. Is it for me? Like Washington Square West and Fitler Square, it is less populated with tourists than some of the other neighborhoods, yet it is very much the city. South Street is very close, as well as some exceptional options for an afternoon or night out.
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