I agree with one of the other Realtors who answered your question – it would probably be best for you to rent out your condo instead of selling it now (of course it is your decision to make). If you were to put in on the market now, in order to get in sold you would have to be competing with already deeply discounted foreclosure properties. This means you have to price the condo accordingly. Sometimes it also means lowering your asking price more and more to get the condo sold. Look and see what homes and condos have sold for in your area in the past 4 months (any Realtor you choose to work with can provide that information for you). Always do your research before making such an important decision, especially in this market. If your credit, job security and financial situation can allow you to buy a larger home and keep the condo - it would probably be best for your family to do just that.

Be happy your income has gone up and I would not sell right now as it is not worth it at all for many reasons. Number one it pays to have good credit so don't mess with selling now as a short sale. Number 2 you can make even more money by renting out your condo and purchasing your bigger home at the same time. Clearly, you could just stay there and be comfortable and have a piece of mind and thats shooting myself in the foot from making a sell but I'll be ok.
http://www.taylor-mason.com

if you are making the income, your best bet is to weather the storm and rent your condo,l you still will be able to purchase a new hom and not have to take a loss. You really wont be able to do a short sale if you are not behind and have the ability to pay it back, they will come after you and your credit will be ruined. if you want to sell and take the loss, only your cps will tell you what capital gains you can offset with the loss, chances are it will be spread over some years, not all at once. again hold it, rent it and sell it when things come back up. good luck Nick

Hi Nick:

This is best answered by your tax account. However, I googled and found a few articles about capital Loss on a,. Here is one from About.com http://taxes.about.com/b/2006/03/20/loss-on-sale-of-house-an…

So, accordingly, since this is your primary residence, you might not be able to claim capitol loss on your condo.

I wonder if you are able to hold onto the condo and rent it out until the market gets better before you sell it . The difference between the rental amount and mortgage, if negative, will allow you to deduct at tax time.

This might be another option; or NOT.

Sylvia