- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (14)
- Nicholas Christopher, "NICKCHRIS"
- Contributions:231
Depends what your looking to do. If you gooing to purchase another pproperty then I'd cut my losses and move on. There are plenty of bargains oout there right now.
- Sergio Hernandez, "Sergio Hernandez"
- Contributions:619
If you have time to wait, hold on. No point locking in an unecessary loss.
- Dan Currie, "Daniel J. Currie"
- Contributions:129
Consider what kind of bargain you can buy as a solution. Since you are selling low because of the market, you can buy low too.
If you need to transfer cash assets into paying down your mortgage balance, in order to sell the property, you can recover by the equity position you can gain on buying a new home.
Look for a foreclosure that you can improve. You can finance the improvements at time of purchase. This will give you immediate equity. Consider selling it after a couple years and buy another home the same way. There will be no capital gains tax if you sell after living in the home for at least two years. When you sell, put the profit back into your cash assets.
If you need to transfer cash assets into paying down your mortgage balance, in order to sell the property, you can recover by the equity position you can gain on buying a new home.
Look for a foreclosure that you can improve. You can finance the improvements at time of purchase. This will give you immediate equity. Consider selling it after a couple years and buy another home the same way. There will be no capital gains tax if you sell after living in the home for at least two years. When you sell, put the profit back into your cash assets.
- Joseph San Angelo, "inrealestate"
- Contributions:53
It depends on your situation as to what your carring cost's are on the Condo. If you're upside down on your mortgage and you can't afford to make the payments then you should contact your lender to see about a short sale.
If that's not the case and you just want out it will depend on where you're going to go (rent/buy). Once you decide what you're going to do for housing then run the numbers to see if they make sense and that will tell you what to do. Good luck.
JOE
If that's not the case and you just want out it will depend on where you're going to go (rent/buy). Once you decide what you're going to do for housing then run the numbers to see if they make sense and that will tell you what to do. Good luck.
JOE
- Scott Chancellor, "Scott Chancellor"
- Contributions:46
Good Question. I think that you already know the answer that is right for you. Renters can be risky and you are still going to take the loss, The Question should be "how long are you going to wait to make up for all the losses?". If you can stop your losses and worries now it might just be the right move.
Good Luck.
- James Berman, "TheNJRealtorGuy"
- Contributions:198
great question, but what is your goal? It looks like your only concern is money. if you take money out of your equation what is your answer?
- Maria Morton, "MariaMorton"
- Contributions:716
Why do you want to sell?
- Wayne F. Smith, "wsmith2inc31725330"
- Contributions:105
Nate,
Unfortunately the answer to your question is a definite "maybe"! I agree with each prior poster.
Yes, seek accountant input as step #1, step #2 look at new mortgage options. I'm also pretty sure there may be other financial implications and pressures on you since one thing usually either leads to another or was caused by something else. I don't envy your decision and have empathy for you. You don't indicate if you are up-side-down onliens versus current market value (short sale) but if so your current lender will need to get involved.
3 years for a value increase that is "significant", may not be in the cards and I wouldn't count on that. I feel that we are reaching a bottom but that bottom period may be a flatline for awhile. Significant increases will take awhile 7+ years if you look at a baseline of current value. Maybe a few % points a year. We will not see the crazy appreciation of 2000 - 2005 for a very long time.
If you decide to sell based upon accountant advice and mortgage consideration, price the property to sell quickly or offer points, closing costs or whatever to make your property the best deal around.
Wayne Smith
Weidel Realtors
www.housesofhunterdon.com
Unfortunately the answer to your question is a definite "maybe"! I agree with each prior poster.
Yes, seek accountant input as step #1, step #2 look at new mortgage options. I'm also pretty sure there may be other financial implications and pressures on you since one thing usually either leads to another or was caused by something else. I don't envy your decision and have empathy for you. You don't indicate if you are up-side-down onliens versus current market value (short sale) but if so your current lender will need to get involved.
3 years for a value increase that is "significant", may not be in the cards and I wouldn't count on that. I feel that we are reaching a bottom but that bottom period may be a flatline for awhile. Significant increases will take awhile 7+ years if you look at a baseline of current value. Maybe a few % points a year. We will not see the crazy appreciation of 2000 - 2005 for a very long time.
If you decide to sell based upon accountant advice and mortgage consideration, price the property to sell quickly or offer points, closing costs or whatever to make your property the best deal around.
Wayne Smith
Weidel Realtors
www.housesofhunterdon.com
- Carmelo Oliveri, "Property Hub Realtos"
- Contributions:171
Real Estate will eventually pick back up again, it has been historically and statically proven. This is my advice from a realtor and investor, if possible to refinance to a lower rate and reduce the monthly out of pocket to $400-500 instead of a $1000 i would say HOLD IT and think of the $400-500 like a 401K. $1000 a month is a bit steep to keep investing into and i would say cut your losses. Another thing to consider is location of the property, some areas are depreciating at greater percentage then others. Hope this helps
- beverly meaux, "Agents Clients Refer"
- Contributions:223
To really contemplate this, sit down with a mortgage advisor and have him/her crunch all the number/tax options for you. Look at where you plan to be regarding your job, finances, other life situations. We all know life happens, but this is a good starting point. After this, you'll be able to begin thinking of what's best for you.
- John King, "John_King"
- Contributions:425
Nate,
I don't think that there is one right answer here. Marc is correct about buyers right now, I have not had one of mine make a full price offer in a while. Even first time buyers are not offering full price in most situations unless they just have to have that paticular home.....
Along with Karen, I hope you are receiving competent tax advice, deductions can go a long way....
I do have a Landlord's Tax Tool available if you need, just let me know.
- citizenb
- Contributions:23
we had to decide in much the same conditions what to do. we just listed. we took what we paid for our house, added 4% appreciation, then added up a years worth of house payments on our current home and decided that we would lower our price by that much to try to sell it within that years time. if it sells in 6 months, we decided to look at it as an ok deal in these current times. if not, we will not renew our real estate contract and re evaluate at that time.
- Karen Corzine, "Readyhouses"
- Contributions:15
You may want to look at owner financing or a high quality lease to own with larger down payment as an option. As the other answer said if you can hang in for a few months more, I'd hang in there. Rent is taxable but in a rental property almost everything is deductible also, see tax advice on that. He is also right that it assumes a good tenant who doesn't destroy the place which is quite costly.
I know this isn't a good answer but I wanted to offer the best I could come up with.
I know this isn't a good answer but I wanted to offer the best I could come up with.
- Marc Paolella
- Contributions:369
Tough question nate. The loss in renting also assumes good tenants who pay and do not destroy the unit. Nonetheless, I would not sell for at least 6 months unless you have to. There are very few buyers in the market, and they are typically making offers of 10% or more below list price and not coming up much during negotiations.
Perhaps the new lower mortgage rates will pull some buyers in. If this happens you can always jump in and put the unit on the market before everyone else does the same thing.
Also don't forget that the income you receive from renting is taxable, so you won't be truly netting the amount of the rent.
Tough times right now!!!
Perhaps the new lower mortgage rates will pull some buyers in. If this happens you can always jump in and put the unit on the market before everyone else does the same thing.
Also don't forget that the income you receive from renting is taxable, so you won't be truly netting the amount of the rent.
Tough times right now!!!
What considerations should I be making in order to decide weather to sell at a loss or hold on?
If I rent it out, I'm still losing $1000/mo (at best) after taxes and condo association fees. Over three years, that's $36,000.
If I sold my property for $36,000 less than what I paid for it, isn't that essentially the same thing?
If I hold on to the property beyond the 3 years, unless the value of the property appreciates significantly, won't I still be losing $13k+/yr?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.