We Sold our Townhouse - House #3!

We finally closed on the townhouse my wife bought before we were married. We had moved into House #4 in December 2008 and had family living in the townhouse (House #3) until the last week of August. We then put the townhouse on the market in September.

Our net proceeds from closing were ~$26,000.

Timeline of Selling our Townhouse
Early August - Agreed to put house on market in early September
8/15-8/21 - Interviewed real estate agents
8/24 - Selected Real Estate Agent with 5% commision
8/25 - The townhouse was vacated and cleaned
9/1 - Signed real estate agent paperwork
9/3 - hired painter to touch up interior (~$520)
9/9 - House was listed on MLS $128,500
9/27 - Reduced price to $124,900 after only 2 showings in <3 weeks
10/8 - Wife and I discussed lowering house price again to ensure house would sell before tax credit expired as we didn't think it would sell till Spring otherwise.
10/10 - Showing #6
10/11 - Received offer for $120,000 with $4,000 in closing
10/12 - We countered @ $125,000 with $2,500 in closing; buyer counterd at $124,000 with $3,500 in closing
10/13 - We countered @ $124,500 with $3,500 in closing, buyer accepted
11/20 - Closing; deed transferred, proceeds wired - yeah!!

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Comments (4)

Remind what the plans were with the proceeds of house 3?

Hey 2million,

Nice job. What are you planning on doing with the cash?

Oh, BTW, one thing I like about your guys blog is you're richer than most other PF bloggers out there, so I feel your posts are worth more to read.

What was your actual return on this house investment. Meaning, you bought the house for $104,000 in 2005, correct? And then you sold it for $124,500 now. So your gross profit was about $20,000, correct? But then after you subtract the costs your paid for closing ($3,500) plus the yearly property tax ($2000?) plus the maintenance costs (?) plus the original broker costs when you bought it, is the net profit then really more like $10,000? Then if you factor in inflation, would it be closer to $7500? Just curious.

There aren't really proceeds from this sale. Our intention was to sell this house when we bought house #4 but its been delayed till now for a variety of reasons.

I say their aren't really proceeds because the equity in house #3 after sale expenses was just emergency funds that we put into the mortgage to cancel PMI and earn a higher rate of return.

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A personal finance weblog of my journey to reach my goal of $2 million + the value of my primary residence.
Current Net Worth: $1,938,393


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