Profile picture for raydebord

how much of loss is ok in a house sell?

We are unable to move our house . What is a good loss ?
  • July 14 2011 - Mulberry
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Answers (4)

It all depends on your situation.  
  • July 16 2011
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This is a tough question which probably only you can answer.

The answer depends on your situation.

1) If you bought a house for $400k cash thinking it will go to $600 and you will sell it for a profit and never intended to be a landlord, then maybe taking a loss is ok. If its only worth $200k now, well instead of making $200k, you lost $200k...just business.
2) If the same situation as #1 and you leveraged to buy and invested
10% or $40k, then loosing $200k, means you would have to pay $160k just to get rid of it, so maybe keeping it as a rental or doing a short sale is a better idea.

So, to answer your question regarding of how much loss is ok, it really depends on what you think is ok.

  • July 16 2011
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Profile picture for the_country_hick
Could you rent the house? How much money would you make or lose each month?

Do you still have a mortgage? If so how much is your monthly payment? How many months of payments is it worth to you to get rid of the house?

There is no perfect reply for you. It all comes down to what you can absorb as a loss and how much you wish to sell no compared to living elsewhere.

Is 1 or 2 years loss based on renting it or making payments on it a good number? Maybe, maybe not. It is a choice you have to make. Just be aware that prices could still go even lower. If they do the loss you would take today would be smaller than the one you would take later on.
  • July 14 2011
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Profile picture for Sharon Lewis
I am so sorry you are experiencing a drop in price, its frustrating I know. You are not alone, there a lot of people out there dealing with it.
Depends on what you can afford to bring to the table, how much cash can you bring to the closing table to make up for the difference between what you might owe to the mortgage company. If you are unable to move your house , sit down with your realtor, look at what has sold recently, how did that house show inside.Seriously, people dont realize it, but the interior of a house is really important to the sale. Get rid of extras, personal stuff. Clean it up, plant some flowers, don't put granite down, you are at a loss right now, there is no reason to keep throwing money at this house. Clean it up, price it lower than your competition. Get your agent to get aggressive with the sale. Good luck to you.
  • July 14 2011
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