I moved out of the 3BR UES apartment my ex and I bought in 1993 four years ago. Our agreement leaves her there with the children until the youngest (in HS) is finished with her first year of college. The 2 older girls are in and almost done with college. The apartment will then be sold. She has the first right to buy me out, then I can buy her out. If neither of us wants to stay, we split the sale... [more]
I moved out of the 3BR UES apartment my ex and I bought in 1993 four years ago. Our agreement leaves her there with the children until the youngest (in HS) is finished with her first year of college. The 2 older girls are in and almost done with college.
The apartment will then be sold. She has the first right to buy me out, then I can buy her out. If neither of us wants to stay, we split the sale price. The mortgage is negligible. I've been renting.
The apartment is a coop in an ordinary 60's 20 story building. Several comparable apartments within a few blocks have recently been listed for sale for about $1.3 million. Most of them are nicely and recently renovated. Ours is not. It's in original and pretty bad condition. The maintenance is reasonable, and the building itself is well-kept, well-run and has some minor amenities.
We are now discussing whether to change the sale date. She suggested making it later, when RE prices are "back up." If we're changing it, I'd like to make it sooner, before they go down even more, because no one knows when they'll go back up.
Does anyone have input?
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Response by jake
about 17 years ago
Posts: 277
Member since: Jan 2007
Jim Morrison: The future's uncertain, the end is always near.
Steve Miller: Go on, take the money and run.
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Response by ClintonB
about 17 years ago
Posts: 128
Member since: Sep 2008
if it isn't renovated, there's no way you'll make out well by selling now.
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Response by ccdevi
about 17 years ago
Posts: 861
Member since: Apr 2007
This apartment probably won't sell right now for what you are hoping for. That said, I think there is something to be said for taking the money and running before things get any worse. It will be years before thing go "back up."
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Response by alpine292
about 17 years ago
Posts: 2771
Member since: Jun 2008
If you bought the apartment in 1993, you will make a hefty profit, regardless of the apartment's condition.
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Response by kas242
about 17 years ago
Posts: 332
Member since: May 2008
Unless you want to wait another 5+ years to sell, do it now.
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Response by manhattanfox
about 17 years ago
Posts: 1275
Member since: Sep 2007
Moving the date seems prudent. While moving in HS is very disruptive to kids -- renting and moving a few blocks away is less of a burden.
sell now -- or agree to wait much longer.... you are in a togh spot but you should agree to pick one of the two moves...
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Response by joedavis
about 17 years ago
Posts: 703
Member since: Aug 2007
if you hang on to it, then one of you could buy it from the other more easily :)
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Response by ClintonB
about 17 years ago
Posts: 128
Member since: Sep 2008
realistically, you will have to do a renovation
it'll be worth it, as painful as it may be short term, especially even emotionally given that it isn't you living there
in a good market, buyers wanted renovation and would pay a premium for the convenience as they'd pay a convenience for ownership, etc.
in a bad market a buyer will see an unrenovated apartment and see a poor, desperate seller and bid based on the estimate of desperation
also, when you sell, pretend you are married - single women with kids are taken advantage of
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Response by julia
about 17 years ago
Posts: 2841
Member since: Feb 2007
Why not remarry your wife and live happily ever after.
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Response by streetnewbie
about 17 years ago
Posts: 18
Member since: Nov 2008
ha. i agree with julia
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Response by alpine292
about 17 years ago
Posts: 2771
Member since: Jun 2008
"realistically, you will have to do a renovation
it'll be worth it, as painful as it may be short term, especially even emotionally given that it isn't you living there"
That is HORRIBLE advice. Please, for the love of God, SHUT OFF HGTV right NOW.
If you do a renovation, you will not see 100% of the money you spend back. Spend $10,000 and you will be lucky to see $8,000 back.
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Response by joedavis
about 17 years ago
Posts: 703
Member since: Aug 2007
he could marry julia 4 giving good advice
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Response by luis5acc
about 17 years ago
Posts: 81
Member since: Oct 2007
Best thing to do is to sell asap. If your ex wife is to buy you out, then this is the best time to do it. You can continue to wait it out and see what happens. If you wait, you may not see anything.
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Response by luis5acc
about 17 years ago
Posts: 81
Member since: Oct 2007
When dealing with a homestead, it is harder to get people out regardless of a signed contract.
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Response by julia
about 17 years ago
Posts: 2841
Member since: Feb 2007
thanks Joe plus that's the only way I could afford a 3 bedroom apartment!
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Response by Lucid
about 17 years ago
Posts: 68
Member since: Oct 2008
Thanks for all the advice. Food for thought.
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Response by newbuyer99
about 17 years ago
Posts: 1231
Member since: Jul 2008
Lucid - how big is the 3-bedroom? Is there any outdoor space? I might be interested when you do sell (and would NOT want a renovation, would much rather do one ourselves to suit our tastes).
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Response by Lucid
about 17 years ago
Posts: 68
Member since: Oct 2008
Newbuyer, there is a 5x10 terrace, and it's a bit under 1500 sq ft. I'm still hoping she'll buy it and soonish -- I'd like to look to buy again myself.
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Response by Maraman
about 17 years ago
Posts: 165
Member since: Nov 2008
Lucid - I would suggest that you have a valuation done now, and set that as the benchmark for your 50%, then set a time frame as a mechanism for sale - e.g. fixed date - 2 years or when youngest child graduates college, or a flexible date - when both parties agree to sell, but no longer than 5 years. If price goes down, you have a set value and your ex eats the loss or profits from the gain.
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Response by drdrd
about 17 years ago
Posts: 1905
Member since: Apr 2007
Maraman, how can you set the value of a future sale on today's value? Absurd! Also, there is already a plan in place as to when the unit shall be sold. I'm hoping that everything is amicable in this situation but you seem to think & want to proceed as if it is a contentious situation. Let's not create that. It seems Lucid is just asking for feedback as to WHEN is the best time to sell.
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Response by walterh7
about 17 years ago
Posts: 383
Member since: Dec 2006
If you can agree on a theoretical sale px now....ask her to forfeit or gain the difference between the average of the 'now' price and the sale price...
ie. value now = 1.1mm final sale px = 1mm avg = 1.05mm
she'll owe you the 50,000. It halves your risk. That said, it the final sale price is 1.4mm, you'll owe her 1.4 - ((1.1 + 1.4 ) / 2 ) = 150,000.
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Response by manhattanfox
about 17 years ago
Posts: 1275
Member since: Sep 2007
You cannot force her to agree to a NOW price -- as the docs provide for a later time. You can both decide on a now or much later date and deal with the details as to maximize you mutual interests....
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Response by newbuyer99
about 17 years ago
Posts: 1231
Member since: Jul 2008
Lucid, thanks. Like the terrace, but it's too small - we need 2000SF or close. Best of luck with the situation.
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Response by Lucid
about 17 years ago
Posts: 68
Member since: Oct 2008
I actually like the idea of getting an appraisal soon and then negotiating a resolution like walterh7 and maraman suggest. We'd probably both be more price- and time-flexible if we had some certainty introduced to the situation.
Jim Morrison: The future's uncertain, the end is always near.
Steve Miller: Go on, take the money and run.
if it isn't renovated, there's no way you'll make out well by selling now.
This apartment probably won't sell right now for what you are hoping for. That said, I think there is something to be said for taking the money and running before things get any worse. It will be years before thing go "back up."
If you bought the apartment in 1993, you will make a hefty profit, regardless of the apartment's condition.
Unless you want to wait another 5+ years to sell, do it now.
Moving the date seems prudent. While moving in HS is very disruptive to kids -- renting and moving a few blocks away is less of a burden.
sell now -- or agree to wait much longer.... you are in a togh spot but you should agree to pick one of the two moves...
if you hang on to it, then one of you could buy it from the other more easily :)
realistically, you will have to do a renovation
it'll be worth it, as painful as it may be short term, especially even emotionally given that it isn't you living there
in a good market, buyers wanted renovation and would pay a premium for the convenience as they'd pay a convenience for ownership, etc.
in a bad market a buyer will see an unrenovated apartment and see a poor, desperate seller and bid based on the estimate of desperation
also, when you sell, pretend you are married - single women with kids are taken advantage of
Why not remarry your wife and live happily ever after.
ha. i agree with julia
"realistically, you will have to do a renovation
it'll be worth it, as painful as it may be short term, especially even emotionally given that it isn't you living there"
That is HORRIBLE advice. Please, for the love of God, SHUT OFF HGTV right NOW.
If you do a renovation, you will not see 100% of the money you spend back. Spend $10,000 and you will be lucky to see $8,000 back.
he could marry julia 4 giving good advice
Best thing to do is to sell asap. If your ex wife is to buy you out, then this is the best time to do it. You can continue to wait it out and see what happens. If you wait, you may not see anything.
When dealing with a homestead, it is harder to get people out regardless of a signed contract.
thanks Joe plus that's the only way I could afford a 3 bedroom apartment!
Thanks for all the advice. Food for thought.
Lucid - how big is the 3-bedroom? Is there any outdoor space? I might be interested when you do sell (and would NOT want a renovation, would much rather do one ourselves to suit our tastes).
Newbuyer, there is a 5x10 terrace, and it's a bit under 1500 sq ft. I'm still hoping she'll buy it and soonish -- I'd like to look to buy again myself.
Lucid - I would suggest that you have a valuation done now, and set that as the benchmark for your 50%, then set a time frame as a mechanism for sale - e.g. fixed date - 2 years or when youngest child graduates college, or a flexible date - when both parties agree to sell, but no longer than 5 years. If price goes down, you have a set value and your ex eats the loss or profits from the gain.
Maraman, how can you set the value of a future sale on today's value? Absurd! Also, there is already a plan in place as to when the unit shall be sold. I'm hoping that everything is amicable in this situation but you seem to think & want to proceed as if it is a contentious situation. Let's not create that. It seems Lucid is just asking for feedback as to WHEN is the best time to sell.
If you can agree on a theoretical sale px now....ask her to forfeit or gain the difference between the average of the 'now' price and the sale price...
ie. value now = 1.1mm final sale px = 1mm avg = 1.05mm
she'll owe you the 50,000. It halves your risk. That said, it the final sale price is 1.4mm, you'll owe her 1.4 - ((1.1 + 1.4 ) / 2 ) = 150,000.
You cannot force her to agree to a NOW price -- as the docs provide for a later time. You can both decide on a now or much later date and deal with the details as to maximize you mutual interests....
Lucid, thanks. Like the terrace, but it's too small - we need 2000SF or close. Best of luck with the situation.
I actually like the idea of getting an appraisal soon and then negotiating a resolution like walterh7 and maraman suggest. We'd probably both be more price- and time-flexible if we had some certainty introduced to the situation.