I bought a home for $258,000 last year, now the market sucks and other homes like it are selling for $232,000. It is also hard to rent, everyone has a place for rent. The payments are killing me. Should I take a loss now or will things improve?
2007-05-15 06:17:21 · 7 answers · asked by tommyfourth 3 in Business & Finance ➔ Renting & Real Estate
Best to find some ways to improve the value of your home - ways that you can do yourself are the best for ROI. I would say wait another year before jumping out the window
2007-05-15 06:22:39 · answer #1 · answered by Daddy-o 5 · 1⤊ 0⤋
There is no question things will improve. The question is whether you can make it until they do. Real estate cycles happen but they have never been permanent in the past and there is no reason to believe that they are now. In the CA crash before many people panicked and sold. Those homes are now worth 2-3 times what those people sold for but it has been 15 years.
No one can say when things will improve. In my opinion, the market reaches a point where buyers start to feel that they are getting a bargain. That increases confidence and puts the market back on an upturn. If there is a significant increase in rates, that will certainly delay the market rebound.
2007-05-15 13:23:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I know what you mean, I work for real estate investment and management firm in Fort Lauderdale. Almost 2 years ago we purchased a complex in Martin county, and another in Indian River. Spent thousands renovating and did a condo conversion. Now we are trying to rent them out, because each month we are taking a sizable loss. Hang in there. Get it advertised. Rent for a little less than you hoped for just to cover some of the loss. Offer move in incentives to qualified tenants. Consider listing it as a lease to buy, Do a 7 month lease, then give tenant 60 days to make decision. If they decide not to buy, they move at the end of 7 months. By that time hopefully the market has changed. Good luck.
2007-05-15 14:04:19 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Figure out how much you will spend in the next 12 months. You may also spend $14,000 in commission fees trying to sell it. Why did you buy the house in the first place? Were you planning on living there a long time? If you sell and buy a similar house, you'd just be buying a house worth $232,000. One thing you can do is reassess your house for property value purposes, you'll pay less in taxes.
2007-05-15 13:21:33 · answer #4 · answered by phaldo 2 · 0⤊ 0⤋
Why did you buy the home if your intention was not to live in it?
You overpaid for a home whose value is decreasing. The WORST time to sell is when property values decrease.
If you are selling when everyone is selling, YOU LOSE.
If you are buying when everyone is buying, YOU LOSE.
If you are selling when everyone is buying, YOU WIN.
If you are buying when everyone is selling, YOU WIN.
So which of the four options should you choose?
Obviously, to sell when everyone is buying.
Your only option now is to refinance your mortgage at a lower interest rate (to lower your payments) and stretch out the mortgage to 40 years. This will allow you to endure the downturn and wait until the market turns around.
Had you listened to the market before making a move, NOW would have been a good time to buy, or when the market bottomed out.
Why?
If you are buying when everyone is selling, YOU WIN.
When the prices are at their lowest, you profit when the values go up.
2007-05-15 13:33:07 · answer #5 · answered by Q 6 · 1⤊ 1⤋
I live locally. If you are in a short sale situation there are companies that will negotiate your mortgage. I can refer you to someone.
To know if you should sell or not, you need to look at the reason you purchased the property to start. If you purchased it for investment then you need to look at a $25,000 minimum was rule of thumb for profit. With the market like it is bu December you may see some recovery. My thoughts are on buyer qualifications, employment and salary amounts, also if you have a MTA or IO product you will eventually need to look at relief either in refinancing or selling the house or you will be upside down with negative amortization. I will be glad to email with you further I have a google business address highergroundfinsvc.
2007-05-15 13:42:51 · answer #6 · answered by MARY A 2 · 0⤊ 0⤋
No one can tell you whether things will improve. Meanwhile you are bleeding more cash each month. Sounds like you should either live in the house or sell it now.
2007-05-15 13:23:36 · answer #7 · answered by squeezie_1999 7 · 0⤊ 0⤋