Offer #2 has been turned down…
…The relo package was not good enough. When I presented them with the math that showed me incurring a hit of 30-45 THOUSAND dollars on my net worth, they offered me an additional $1300 signon bonus. I didn’t even laugh.
I am currently in the vicinity of Offer#1, investigating homes and schools (Brad would be happy…until he moves…) Still no official offer#3 (but they assure me it is coming)…
March 7th, 2006 at 3:38 pm
Donde esta el trabajo numero dos?
March 7th, 2006 at 3:45 pm
En la valle de me universidad. Numero Uno es dos o tres horas norte de sus padres…
March 8th, 2006 at 3:36 pm
Huh?
Anyway - how do you calculate “net worth”?
March 9th, 2006 at 9:42 am
What it boiled down to is thusly:
It “costs” me 5-6% to sell my home (realtors fees). My home’s current value is anywhere from $410k to $430k, so we’re looking at a $25k-$30k bite out of my gain in value going to someone else, when all things are considered. At the same time, closing costs on a $375k home in the area of the job would have been anywhere from $10k to $15k, depending on loan type and taxes and such. Add the two “losses” up, and you get $35k to $45k in costs that were not being covered in the relo, therefore would come out of my pocket. Not so kind a move for my wallet, regardless of the opportunity.
Net worth: Essentially, take all of your assets (anything you can sell), and subtract out your debts, and you are left with a number. To overly simplify, if my house is worth $100k, and my mortgage is $75k, my net worth is $25k.
March 9th, 2006 at 11:23 am
So if your house is worth, say, 430k, list it at ~460k. You will be even on the sale. Then, when you buy your new house at full price (375k or more), ask the seller to cover all your closing costs minus the taxes (which the seller can’t pay for). For example, if the house price was 400k, offer 400k plus 3500 back. (Assuming 1.5K title, 1K lawyer, 1K mortgage fee). If your taxes were 5k/yr, you would owe 1666 plus whatever back to seller to make up for the current quarter. If you bought your house now, you would owe the rest of marh + april = 833. Therefore, you would be out 2.5k. If they offer and extra 1.5k bonus, you would be out 1k. I don’t think it is that bad of a deal…
March 9th, 2006 at 11:34 am
If my house is worth $430k, no one is going to pay $460 in the current market - they will pay at most 430, and in fact will probably offer low hoping I’ll bite. The season is just starting, and it is definitely a buyers market right now. Might morph into a sellers market quickly, but not there yet.
As to buying the new home - that option would be a gamble. More then likely, I would have had to roll the closing costs into the mortgage or something like that, which actually extends the pain.
March 10th, 2006 at 6:46 pm
You almost def. don’t want to roll in the closing costs, the additional % interest is not worth it. Worst case scenario if you don’t have the cash is to offer higher than listing price with cash back from the seller. Right now Sara and I are looking at townhouses and offering full price with cash back from the seller to cover the closing costs. We could afford the closing costs now, but I’d rather keep my money making interest.