Help a Reader: How to Move Home

Here's an email I recently received from a reader:

Let me give you some background first. My wife and I are in our late 20s and we have a daughter just under 1. We currently live about 3 hours from all of our family and friends because of my job. We own a house (not outright, but we are working on the debt-free thing :)). We have no other debt and own a couple of cars. We also still own a townhouse back "home" that we use as a rental property.

Now for the issue we are dealing with. We would like to move back home, but we are struggling with what order we should do everything in. That doesn't make much sense, so let me try and explain. In order to move back home, the following things must be done (in no particular order):

• Sell existing home
• Buy new home
• Get new job
• Leave current job

Each task on its own is simple enough. The job market is good for what I do where we want to be. The housing market is favorable as well. I can leave my current job on good terms without any issues. And I believe we can sell our house...eventually...at some price :). The real question is what order to do things. For instance, I know I do not want to quit my job before I get a new one. I also know that I do not want to take the risk of buying a new home before I sell the existing one because two mortgages would be more than I want to have to worry about. And it is probably not a good idea to buy a house in the new location before I get a job there in case I have more trouble than I think I will have in finding employment. I don't think moving into the rental property is a solution since we would still have the two mortgage issue to deal with. I would be willing to sell this property as well, but I am not sure that helps the problem much either.

To make the real issue clearer, if I get the new job first, then I have a job that is 3 hours away from my home and no realistic timeline on when the house will sell. If I wait until the house sells first, then I am homeless until I get a job in the new location (since I do not think it is a good idea to buy before I get the job).

Any advice? The main reason we want to move back home is because we want our daughter to be around our family more.

What advice do you have for him?

Comments

[Jim]

Get the new job first, then immediately give notice at the old job. After taking the new job, put the house on the market. You will probably have to find some kind of temporary living arrangement near the new job until the house sells. Do not buy a new home without selling the old home first. Is it possible, you could live with a relative near the new job for a short period of time?

[plonkee]

This is going to cost money.

The housing market where I am is rubbish and even when it's good it takes at least a couple of months to sell, so I would be tempted to put the house on the market first, then look for a job.

Buying a new house should definitely come last though.

[random john]

Get the new job but negotiate an extended start date. That's what I did with my current job. At my previous job, I would have had to repay my signing bonus and relocation expenses if I left before, say, July 1. I got the offer for my current job in March but told them I wouldn't be able to start until mid-July and they were fine with that. I gave notice on July 1 (I didn't want them firing me and then making me pay them back), finished my 2 weeks and then moved to the current job.

You can use the delay before starting the new job to find the new house and start selling the old.

[Orthros]

I am actually in the process of doing this myself. I live about 5 hours away from an extensive family group and am getting ready to move back in about a week.

In contrast to most advice, the order which I've taken is:

- Leave job
- Buy house in new city
- Sell existing house in old city
- Get new job

I have chosen this order for numerous reasons... but the primary being that I've attempted to get back to my hometown for over 10 years without success, and decided that getting back was more important than immediate job security. I also have about a year's worth of emergency funds (which is 100% critical to making this work) and access to moderately expensive, if not very good, medical insurance.

To me, the key is what your goals are. For the past 10 years my goals have been centered on career and money, even though I would have denied it. My goal now is to make sure my kids get to spend time with their grandparents, who are in fast-declining health, and with aunts, uncles, cousins, etc.

If one can't afford it, that's understandable. In this housing market, however, you'll have to take a substantial price hair cut on your house or wait for 90+ days to get an offer in most areas of the country. This is exacerbated when you're living in the home you're trying to sell.

Oh, and going into interviews without a current job isn't a deal killer... especially if you explain *why* you're doing it. In my case, I expect certain companies to see it as a huge plus, as they will realize that you're much less likely to leave the area for another role.

[tom]

My opinion of the order:

~Find new job
~Sell house
~Quit old job
~Buy new house or move back into townhouse

I agree with Random John, you can negotiate a start date, or even negotiate some relocation benefits. Finding a new job is top priority. Once you accept an offer, immediately put your house on the market. Then give notice at your old job, doesn't have to be 2 weeks notice. 99% of the time it's not 2 weeks notice, it's like 2 months notice (it'll take you 2 months to organize you position for the next person to take over). If your home doesn't sell by the time you start your new job, move back into the townhouse. You've been able to afford both mortgages. Yes that rental income isn't there anymore, but I assume you weren't counting on that in order to afford the townhouse and regular house. Then look for a new house.

[Strick]

I did this years ago for the same reasons - to get my wife and young kids near her family (and the fact I was tired of city-life was also a good incentive). Start preparing to move (start looking at homes in the new area, etc.), it not only gets you prepared but puts you the right mindset to land that new job quickly. Definitely don't quit your job until you get a new one. The advantage of moving first to find the job is almost non-existent since you are only 3 hours away, not a plane ride, so why take on that kind of risk?

We crammed into a bedroom in her family's house once I found the new job (and moved all of our stuff into a storage facility). Once you say you are moving there for the reason of being near them, they'll try to help you out as much as possible (never underestimate the power of grandkids). If this isn't a possible solution, just rent a place month to month (you'll pay a bit of a premium, but that expense is minimal compared to holding two mortgages/quitting a job even a little early). Most places don't advertise as month-to-month, just make an offer (being a responsible homeowner already makes you golden in a property manager's eyes). Either situation will keep you motivated to sell your old home and find a good new home quickly. Your cash flow/savings situation will have to determine how motivated a seller you are.

This is by far the best move I ever made. In about about 3 months we found a home which I now can say I hope to grow old and die in.

[Kevin]

I would put buying the new home last on the list, just for the fact that it could get you in the most financial trouble. And you can probably find a short-term apartment or something. Ideal situation? Maybe not, but it's more workable than two mortgages.

Taking that out of the equation, I would secure a new job first while getting your current home ready to sell. Depending on how long you think it will take to land the job you may want to put the house up while you're still looking. Even if you get a contract on it, you can probably negotiate a closing date that will work for you, or even rent the house from the new owner for a month or two. After you get the new job, give notice to the old employer.

To review:
1) Get a new job
1b) Put the old house up for sale
3) Give notice to the old job
4) New house

Sounds like you have a good handle on things and aren't just jumping into something, so you should be fine. Good luck.

[Jon @capitalistmven.com]

I would definitely recommend the job as the first priority. Get the job where you want to move, then put the old house for sale. Live in an extended stay hotel or apartment. Have the wife and kids come on weekends. Family takes the kids (surely if moving near them is so important, they are willing to provide lots of babysitting), wife and yourself house hunt. 3 hours (I assume by car) is an easy distance to deal with.

[Ken]

My wife and I are in a similar situation.

Her family is three hours away. We want to move there. The good news is that we only rent, but we would look at buying a house there. Although i wouldn't mind waiting some more, as house prices are falling.

The question for us is when do we try and make the move.

I want to find a job there I like, since when we have kids she will stay at home. Then buy a house based off just my income.

In the meantime while we are finding a place there, she has plenty of family we could stay with.

[Ken.H]

I would ask, "What's going to take longer, finding a new job or selling your house?" Your costs are going to be some temporary housing and you want that to be as minimal as possible, so do what takes the longest first.

[ToughMoneyLove]

Job one is taking care your family so having a secure and stable job has to come first. Also, this comment of yours has me a little concerned: "all of your friends are three hours away." Sounds like you never gave your new location a chance. You cannot base all of your life decisions on emotional attachments to where you came from. Will you teach your children that leaving "home" is a mistake? "Life is a journey" actually means something. Good luck.

[WiseMoneyMatters]

Personally, I would go ahead and put your current house on the market. If it sells quicker than you'd expect, you can always move into an apartment or even rent a house temporarily while you search for a new job. Once you find the new job, use the money you have from selling the house to purchase the new one.

It's an annoying transition (moving multiple times) but the safest.

Another thing to consider is the housing market in your area. My house has been on the market for 8 months along with about half of my neighborhood. If things are selling slowly like that in yours, you may want to get your house on the market ASAP.

Second is how desirable is your profession in the new hometown? You mentioned the job market is good. If that's the case, you should have a fairly easy time getting a job.

Between getting the new job or selling the new house, I would start whichever you think will take the longest to accomplish.

[Mia]

I think you need to add another step to your list.

Step 1 should be: Research the housing market in the area you live in now.

Look at homes on Realtor.com to get an idea of what's out there and keep an eye on them in the weeks and months to come. Contact two or three realtors and get their opinions plus ask for recent comps (recently sold homes that are like yours and ones currently on the market), and also ask them each what the average days on the market are for your area and type of home. You can also ask for their opinion on what you can inexpensively do to spruce up your home for a quicker sale (deep cleaning, painting, planting flowers, minor fix-it's, taking half your stuff to a storage facility, etc.).

All of that is to give you an idea of not only how much you can expect to sell your home for, but also an idea of how long it will take to sell. Because your next step is to find a new job.

And once you get the job, then you list your home for sell and you move to the new area (just you, wife and kid stay in the old house - you move in with friends or family). Because you'll know how long to expect your house to be on the market (that realistic timeline that you asked for), you'll know how long to expect to be apart and together you can make plans for dealing with that (pc video cams are great!).

Meanwhile you can research housing in the new area, go back home to your family on weekends, and/or start looking at homes in your new area on the weekends. You buy the new home only after CLOSING on the old home - or you could easily be stuck with 3 mortgages.

A good resource is the Garden Web's Buying and Selling Homes forum - http://ths.gardenweb.com/forums/realestate/

Good luck!

[James]

Hi everyone. Thanks for your thought out comments. I am interested to see why many people are suggesting getting the new job before selling the house? I do believe the job search is going to be much quicker than the home sell. Most likely, I will put the house for sell and start the job search around the same time. I originally was going to wait for the house to sell to start looking for another job, but I guess there is no need to wait. We can always stay with family until the house sells.

[Shane]

I think FMF has a post about your job being your #1 asset...I think that's why most people are suggesting getting a new job first. You don't want to be out of a job for an extended period of time.

[LC]

I would suggest putting your current house up for sale first. Then once the offer goes through, you should have 45 days before the closing anyway, so use that time to find a new job. This saves you the risk of having the old house after you've relocated, which would be the biggest headache. If you aren't able to find a new job that quickly, then you can rent a place until you do, or even send your wife and kids to stay closer to family (in your townhouse?) while you continue to look. It's not desirable, but it may be a workable option. Better to be homeless temporarily than jobless. An emergency fund is critical during this time, though.

So my suggestion is:
1) sell your house
2) look for a new job
3) leave current job
4) buy new house

[Jim]

I agree with Kevin and others who order:
1) Get a new job
1b) Put the old house up for sale
3) Give notice to the old job
4) New house

I would also research real estate markets in both towns a bit more as a preliminary step.

@James, re: "I am interested to see why many people are suggesting getting the new job before selling the house?"

I'd put finding a new job first on the list since you need the income in the new location first and foremost. Without a job you can't pay your bills. Without a job in the new location the whole move never happens. If you move first without a job you may never find that job and end up unemployed in a new town. I you sell your current house first but don't have a job lined up then you're stuck in your old town with no house.

[Richard]

If you've got the savings for it, get the new job and sell the current house at the same time. You can rent for a few months if you can't find anything you like right away, but you're not going to want to have a job that's three hours away in either direction. (house here / job there OR house there / job here)

We're trying to move across the country in January. An option I accidentally stumbled upon is to get a work-from-home job, if that's a possibility in your field.

With the job I started a month ago I won't even have to take any time off if we move over the holidays and if the internet is hooked up before we move in....not that we've found a house yet :-)

[Jim]

Honestly I think it really does depend a bit on exactly how good the job market is in the new town and exactly what the housing market is in your current town. I'm now having second thoughts on whether you should sell the home first or job hunt first.

Could you rent an apartment or house for 1-2 month if necessary at your current and future locations?

If so then you might use a plan like this:
1) put house up for sale at same time start some preliminary research/ground work to job hunt in new location
2) when house has offer start job hunt for real and give yourself as much closing time on the sale of the house as possible
3) if you get a job before closing then fine, sell house and start new job
3b) if you don't get a job before close of your house sale then move to temporary housing in current city
4) when you get job in new city start house hunt in new city
5) if you can't find house then move to temp housing in new city or if you find a house then move to new house & job at same time

[James]

Thanks again everyone. These are great suggestions. Let me clear something up. I wouldn't be leaving my current job until I had the new job...even if I sold the house first. I would rent a place or stay with friends in the old location until I got a job in the new location. My work schedule is flexible, so I would be able to travel to the new location for interviews and such. I think I like Jim's idea the best so far.

You need to find a new job first. This is because you can possibly negotiate a signing bonus, relocation, and/or earn more money! All things which will help the move.

At the same time, you need to find a real estate agent/research sell by owner options, depending on what you want. So as soon as you have an offer you'll be ready to put the house on the market, plus the agent can help to circulate word that your house may be on the market soon.

In the new town, my advice would be to bunk with a relative or rent a 1 bedroom or studio. It will be cramped but you can do a short term lease and save money.

Then find your new house and enjoy your family!

[slinky]

Get new job
Put house for sale
Give notice at old job
(if necessary find temporary accommodations)
Buy new house

Once you get the new job, start the wheels turning. Put your house on the market, start packing, ditch your old job and start scouting the area for a new house. If your job starts before the house is sold, either find a tiny cheap apartment or a spare room from family, and move just yourself out there. As soon as your old house gets a buyer, start the process of buying the new house. Hopefully this will work out so that you can move your wife and child directly from old to new. It may cost a bit more, but it's cheaper than carrying two mortgages.