Yes, you could sell it again...if you price it right. And that means buying it at the right price. Look, you know that if you owned the property and put it on the market at $500,000, it'd sell. If you put it on at $700,000 today, from what you're saying, it'd probably sell. But we know it's not selling today at $920,000. So the market is saying it's worth less than $920,000 today. And while no one has an operable crystal ball, as noted above, I expect prices to continue to decline for awhile. Now, if you're planning on living there for 15 years, that's one thing. There's time for the market to recover nicely, and time cures a lot of buying mistakes. But if your timeframe is shorter--say 6 years or less--then you've got to be much, much more aggressive in your buying.
Again, I don't know your area at all, nor do I know anything about your finances beyond what you've said above. So I don't have specific advice on price. But your strategy is OK. Just buy at the right price and know what you can afford.
One suggestion is to double check the taxes and then see when it's up for re evaluation. I have found that some homes have been incorrectly assessed by the city. Also how are you paying your taxes? You would need to establish the correct market value of the home as well before making any decisions. Also, i would look in to what is the likley hood of getting a tenant for the lower level? If you don't get one how does that impact you monthly? Usually higher taxes means something is desirable in that area may it be beaches, township etc. hope this helps you can contact me if you have any other questions.
Always Going the Extra Mile!
Kw Associate Partner, Serving Fairfield County
It also sounds as though you would really be putting yourself in a tight financial situation. If you have to rent the bottom half of the property to help with the taxes and mortgage you should probably continue looking for another beautiful property with lower taxes and a lower mortgage.