We Have an Offer on Our House!

We received our first offer on our house in NC today, and after much thought and negotiation, we accepted it.  I’m happy, and I’m not. 

Why not?  Well, the initial offer was for $175,000 on an asking price of $199,900.  By the time we finished negotiating, the agreed upon price had risen to $185,500.

Because of the market right now and the fact that our house in NC will need some fairly substantial routine maintenance in the next year or two (a new roof, new air conditioning unit) my husband and I felt like it was a fair amount to ask, but with one problem:  in order to pay off our mortgage on that house (which is actually a bridge loan of $180,000) and pay the realtors ($11,130 at 6% commission,) we really needed to get about $5,630 more than what we agreed upon. 

We were praying hard about it! 

Then I realized how narrow-minded we were being about this – we were only looking at the fact we would still owe $5630 on the house.  And that it was “more” debt.  But it wasn’t.  In reality, we were selling something that had become a liability – between the sinking market and our $953 a month payments (which start February 1st.)

We weren’t looking at it properly.  We should have looked at the bigger picture.  We are $317,344.57 in debt, including both mortgages.  After commission, we’ll have $174,370 to put towards our debts – actually, just this one, massive debt.  It  will be a major blow to the debt monster, bringing our total down to $142,974.57.

 Now, I’ll admit some of this number crunching is purely to make me feel better.  I still feel like we are adding to our debt by having to come up with this $5630, most likely by taking out a home equity loan on our current house or by charging it on a credit card.  I hate both options, although we are leaning toward the home equity loan for obvious reasons. 

We do have some money from a CD that just came due; about $3000.  We’ll have to pay for the mortgage for the first 12 days of February out of that, and then we were hoping to put the rest in our emergency fund.  While I still believe we will use it for our emergency fund, it’s always an option to use it to pay down the money we’ll be short when we go to closing.

I’d really like to hear other people’s opinions about this money. 

What would you do with the $3000 in this situation?  Emergency fund (which contains $100 right now)?  Pay down debt?  Bring it to closing? Something else?

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