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Let the Stress Begin!

Discussion in 'The Okie Corral' started by LoadToadBoss, Mar 16, 2010.

  1. LoadToadBoss

    LoadToadBoss IYAAYWOT

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    Mrs. LTB and I have place a signed a contract to buy a new home contingent upon our current home selling. We're trying to move closer to my new church that I am pastor at to better serve the community. My 35 minute commute will turn into a 5 minute commute.

    Current home is only 8 years old and still in good shape. New home is a newly built construction. We tried selling our home in 2008 to move to SC to be closer to Mrs. LTB's ailing mother. The housing market dried up and we did not sell after a year on the market. No one even gave us an insulting low-ball bid. MIL eventually died and we decided to stay in LA.

    For those who have had contingency contracts, how did that work out for you?
     
    Last edited: Mar 16, 2010
  2. Spiffums

    Spiffums I.C.P.

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    No parsonage at the Church?

    Gratz and prayers sent that you will sell your house and get moved.
     

  3. LoadToadBoss

    LoadToadBoss IYAAYWOT

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    The consensus among many pastors is to not live in a parsonage. Several reasons:
    1. The parsonage is the church's home, not the pastor's.
    2. Church members feel a greater liberty to drop by the parsonage unannounced than they would at the pastor's privately owned home, especially if the parsonage is located next door to the church.
    3. Church members can be rather nit-picky when it comes to how well the pastor keeps the grass mowed or even keeps the inside clean. Think HOA Nazis on steroids.
    4. The church is the "landlord" for the parsonage and is responsible for normal landlord maintenance/repairs. Some churches are less responsive than others in making such repairs.
    5. A church offering a parsonage gives the pastor a lower wage since the pastor doesn't have to pay for his own home.
    6. While the pastor does not have to pay regular income tax on the fair rental value of the parsonage, he/she does have to pay self employment tax at 15.3% on the FRV. However, that tax has to be paid from the reduced wages the church provides.
    7. While living in a parsonage, the pastor does not build equity.
    8. If the church dismisses the pastor, he is not only out of a job, but out of a home. Statistics show that pastors have a greater chance of being fired than NFL head coaches.
    9. If a pastor dies in the ministry, his family must move out of the parsonage to make room for the new minister.
    10. When it's time to retire, the pastor has no home to go to and no equity with which to buy a home. Since the church that provides a parsonage often only gives a poverty wage, the pastor and family have not been able to save a lot of money to put into a home for their retirement.
     
  4. CSnakes

    CSnakes

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    We had a contingency... and our buyer did as well... theirs fell through hence, ours fell through. IT did all work out in the end, about 4 months after the original offer was accepted... I wish you luck, and hope all works out for you sooner than later.

    CSnakes
     
  5. 220-9er

    220-9er

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    It really depends on pricing your home in the market we have now , not months ago. Prices have really dropped in most places and if you aren't competetive you are just wasting your time. Also, first homes & just above that are selling right now but nothing else.
     
  6. LoadToadBoss

    LoadToadBoss IYAAYWOT

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    Yeah. Some homes in our subdivision that have less square-footage have higher asking prices than ours. Hopefully that will move traffic my way.

    Mrs. LTB want me to think about getting an equity loan and using that to make the down payment on the new home so we can go to closing. If someone offers a higher price than our contract, the seller has the right to ask us to meet that price or remove the contingency and buy right away for our contract price (or else void the contract and release the home).

    If I took $60K of equity out of my home, then I would have two mortgage payments plus the equity loan payment. Then I'd really know what stress is about. I would also need to make sure that my current home sells for my asking price or else I won't have enough cash at closing to cover the mortgage balance, equity loan and other closing costs. Good grief, Charlie Brown.