Navigating Concurrent Transactions
Relocating for work or family or cost of living always involves a tricky two-step: selling the original house and using the proceeds to subsequently purchase the new one.
Relocating for work or family or cost of living always involves a tricky two-step: selling the original house and using the proceeds to subsequently purchase the new one.
We buy our homes to fulfill basic needs of survival, i.e. the safety and comfort of shelter. Yet purchasing a house can also serve as a financial investment, with the expectation of a generous return at re-sale time. Results, however, are often mixed.
When a house is conveyed from one party to another, the buyer is not simply purchasing property. Buyers pay for borrowed money, legal representations and warranties, evaluation services and myriad inspections. In short, the conveyance is bigger than the house itself -- and more costly.
A house has all kinds of benefits and blessings for a family. Whatever its physical and environmental defects, these are subjective qualities that can never be separated from the structure. At the same time, there are also objective standards by which a house is measured.
When available house inventory is low and buyer demand is high there is little doubt that a sellers' market is at work. This certainly implies that sellers occupy the driver's seat when it comes to negotiating with purchasers. This is true, to some degree, but it is far from an absolute truth.
Long ago was a time when home meant four walls and a roof. The purpose of shelter was to remain warm and dry. As quality of life improved with economic growth and technological progress, so did the concept of what a home should be.
Older homes offer history, charm and comforting atmosphere. Few of them are cookie-cutter designs and they enjoy unique architecture and stately appearance. Of course, there is a flip side to all this distinction: older homes are, well, old.
What makes a house a home? On a functional level, a house runs on its infrastructure, i.e. its electricity network, its plumbing system and the myriad appliances that afford that loving family some degree of comfort and convenience.
People invest in second homes for myriad reasons. Sometimes they purchase it for rental income. Othes enjoy the tax benefits while still others simply want a place to get away from the grind. Whatever the motivation, second homes come with pleasures and headaches just like primary residences.