Profile picture for beautynu1

How does a home selling lower than my purchasing price benefit me?

  • July 29 2010 - Douglasville
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Answers (6)

Most home owners have seen their values decrease and if you purchased a home during to peek, you will likely have to sell for less today.  Although it is tough to sell for less, you will likely make up the lost equity in the home you buy since everyone is selling for less.  At least when the home values go back up, you will get your equity back, although it will be in your new home.
  • August 11 2010
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Profile picture for the_country_hick
You lose money at closing.

After closing you never have to make another payment on that property again.

Selling at a loss sets you free so the property no longer owns you.
  • August 10 2010
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Profile picture for sunnyview
It doesn't.
  • August 10 2010
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You may be able to lower your property taxes in some states
  • August 10 2010
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Profile picture for Debbie Holmes
It depends on whether you need to move or want to move.  If you need to move selling the home at a loss benefits you.  If you want to move that might be different.   These are tough times we live in and there are a lot of tough choices that need to be made.   You can also rent the property out....    
  • July 29 2010
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It doesn't, unless you need some sort of tax write-off for losses. Otherwise I can't see how it would 'benefit' you to sell a house for less than what you purchased it for.

That being said, if you are in a financial situation where you need to sell the house or risk foreclosure, it could be in your best interest to sell the house at a loss and work out an arrangement with the bank to cover the difference (or have them forgive it) so that you can still be in decent enough shape to purchase something a little more manageable.  Or if you have an investment property that is not producing income and is in a negative cash flow position and you can no longer afford to hold onto it, it may be worth selling at a loss to free up funds for other areas.  These are a few areas where selling for a loss may make sense, but I don't know if I would classify that as benefiting you.
  • July 29 2010
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