Is it worth a shot to sell these properties?
I'm fully aware that our timing is far from perfect but here's our story.
Hubbie & I purchased our home 5 years ago. Its a 2 BR starter home on a lake, 25 miles outside of Boston. At the time the average house in our state was selling for the high $300K's and we bought our house for around $250K. In the time we've owned it we've put in new windows, new floors, fenced in the yard, new deck, new front stairs, new dock and a myriad of other minor improvements.
In August of this year we found out that we're pregnant, expecting in April 2009.
My mother lives about an hour away in a 3 BR house that her and I own jointly. She initially purchased this house w/ my dad back in the 1970s for $25K and the most recent estimates are that its worth somewhere around $130-160K. My dad is deceased and mom has decided she wants to sell the house and move closer to us. Especially now that there's a grandchild on the way. Preferrably, she'd like to sell her house, then we'd use the proceeds as a downpayment for a larger house for all of us, with my husband and I listed as owners on the deed.
Recently we came across a property that would be perfect for our family. The hubbie, myself & baby would have plenty of room & privacy. There would also be a separate living room, bathroom and bedroom available for my mom. And the price of the property is reasonable.
So, we're seriously considering this idea of selling both properties to buy a larger house.
Many say this is NOT the time to play the real estate game. But I wonder if we could possibly make this work? I've looked at the final sale prices of comparable homes in our neighborhood. Those houses sold for approximately $10-20K more than what we currently owe on our mortgage. And our house has a larger, fenced in yard, 2-car garage and water access (which these other houses did NOT have). So it doesn't appear that we'd wind up "upside down."
Any thoughts, insights or advice for us as we consider this opportunity? We want to be smart about it so we've already agreed that we won't buy a bigger house unless at least one of our homes have sold.
But I guess what I'm wondering is whether we're crazy to even attempt this complex deal in the first place?