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tinycastles

Too risky? Starting build in spring but don't close til July 2

tinycastles
12 years ago

The Good: We already own our land and builder is lined up (house plan is still a work in progress). We successfully sold our home by ourselves and cleared a very nice profit. We will have 30% of our project cost in cash. Purchase agreement is signed, $10,000 in escrow.

The Bad: We don't close until July 2. Our buyer is a physician who will not be joining the hospital here in our hometown until next summer, hence the closing date. He and his family will not be relocating until then. Our sale is NOT contingent on his current house selling or anything of that nature.

We would like to start our project in spring but will not have that profit from our home sale, which is approximately 6% of our project cost. Do we start build anyway? COULD we start build, would a bank even approve us under these conditions? We have family that could "float" us a loan, but I guess I would rather not resort to this. Not trying to sound young and dumb (although we are young and this is our first build) but just wondering if anyone else has been in this situation, or if this is "risky business".

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