When to sell my my home when getting one built in another state

Question

I plan on selling my home in Cleveland, Oh and build a house in Florida not sure when to start the Sale or Build process. I have already purchased the land cash and have about 150k in equity in my home I'm selling and plan to use that money for the new house I also can use the 89k that i purchased the 7.5 acres with. I also want septic, solar and a pool so now I'm not sure when to bring these subcontractors into the process. I found the builder i want to use and is vetting them now. I own 27 doors following Bigger Pockets suggestions over the years retired 2 years ago. any advice would be gladly appreciated. Thanks in advance

Mike Smith · Answer

@Paul Johnson If you need your equity from your current home to fund the new build, I would highly recommend selling your current home ASAP so you know the exact amount of equity you have.  You will sleep better at night with 150k in the bank vs "feeling" when you sell you will net 150k.

Just find a 6 month to 12 month rental after you sell your existing home.

Bill B. · Answer

Are you figuring on a year or two for completion? Where will you live in meanwhile? Might help to become a Florida resident tax-wise though it might not help as much if your rental properties are still in income taxing states.

I assume you’ve lived in your current home for at least 2 years to sell tax free. If you have a nice rental maybe live in that for 2 years during the build so you can sell it partially tax free?

JD Martin · Answer

Sell as soon as possible if you need the equity in the home to pay for the new home. I have a fun story you can listen to (in my signature) where I did just what you are talking about doing and lost about $100k in the process. Just click on that "Podcast #243" down there.

You don't "want" septic, you'll need it if there's no sewer system so that needs to be in on the front end of the entire process if you're acting as the GC (General Contractor) because you'll need that permit to build and/or occupy the house. Pool and solar could just come later but no point in not involving them from the beginning so they can look at your footprint and orientation and start designing something that will work for you.

Eliott Elias · Answer

When putting your next home under contract make the closing contingent upon your primary selling

Tim Nethers · Answer

Hi Paul,

You sound like you got the sell now advice already, so here's my favorite general florida tips.

Native Floridian here, make sure you have plenty of south facing roofline to support your solar, free and clear of trees! Solar is amazing for the power bill offsetting, with 100% solar coverage, I paid $10.42 for my city's tax power bills on the last home until I sold. Though, I don't suggest solar heating for your pool, it's typically only good for about +10* over the outside temp, meanwhile I can heat my jacuzzi on electric in the dead of winter to 104* in about an hour and control the temp from my phone.

If you have any questions about Orlando, let me know. I've lived on all sides of Orlando for the last 30+ years and currently own down here. If you're in a Greater Orlando suburb, you may be better off with city sewer/water in-lieu of septic.

Paul Johnson · Answer

appreciating the advice thanks.

When to sell my my home when getting one built in another state

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