Home Buying in 37129>Question Details

Mark, Both Buyer and Seller in 37129

should i sell my house i owe 100000 it is worth 180.000

Asked by Mark, 37129 Mon Oct 12, 2009

would also leverage it to buy another property

Help the community by answering this question:

Answers

11
Shelby Hunton’s answer
What are you trying to do? Buy more property to live in? Keep as a rental? It really all depends on a few answers. You might have some good tax incentives to buy another home even if you keep the current house.
Hope this helps,
Shelby Hunton
http://www.shelbyhunton.com
(615)429-3348
0 votes Thank Flag Link Tue Jan 26, 2010
No. I wouldn't sell unless it was for a specific reason. All you will do is churn taxes. Owing that little should mean you can:
1) finance to low rates if you have not already.
2) live in the home with low payments if you wish,
3) rent with position cash flow if you want to live elsewhere
4) sell it when ever you have sound reason to do so.

You're in a strong equity position which gives a patient person lots of options and opportunity.

Enjoy . . .
0 votes Thank Flag Link Mon Sep 16, 2013
With the recent additions to the Homebuyer Tax Credit it might be worth considering. If you've paid down your loan that much I assume you've been in the home for around 5-10 years (unless you put down a substantial amount in the first place). The newly introduced tax credit for existing homeowners aims to lure buyers who bought in real estates peak years and whose equity is lost in the down market. The $6500 credit is basically there to offset that loss and allow would be buyers to get back in the real estate mix.

One consideration is that the credit doesn't require you to sell to take advantage of the $6500. You can stay in your home and still get it if you purchase a new one. If you downsize you can also still recieve the tax credit. The only real requirement is that you've lived in your home for 5 consecutive years of the last 8 as your primary residence.

In your case you could get a great deal in the current buyers market and get the tax credit to offset your closing costs. If you wanted to keep your old home as an investment property the $6500 credit for current homeowners is a great deal.

At the end of the day you're not likely to lose any money selling as you'll make up the difference by taking advantage of the current buyers market and the tax credit is just an added bonus.
0 votes Thank Flag Link Tue Nov 17, 2009
There are no right or wrong answer here. It all depends on what your goals are or if you have out grown your current home. The objective should be to eventually own your home out right and not have a mortgage, thus freeing up money for other things. According to your numbers, the bank still own's more of your home than you do.
Instead of selling your current home if your happy with it, you may want to consider taking advantage of the down market and buying another investment property. There are plenty of forclosure properties available that can be purchased at discounted prices as long as you have the right negociator.
If you would like to explore this possibility, feel free to give me a call.
0 votes Thank Flag Link Tue Nov 17, 2009
Would you move up with your next purchase or downsize? This is a great time to upsize because any decline in value you've experienced in the current market will benefit you on your new purchase. Say your value is down 10% so you're losing $18,000 more you could have sold for if the values weren't down 10%. But say you're buying a $250,000 house this time - well you'll save $25,000 so that will more than offset your "loss." However, it also works in reverse. If you're downsizing then the 10% you save on your buy will be outweighed by the 10% you "lose" on your sale.
0 votes Thank Flag Link Mon Oct 26, 2009
Best speak with CPA who can review all your financial records short and long term goals.

Realtor can provide you research days on market, true home values, up to 3 year history of area assist in making a decision.

http://www.lynn911.com
0 votes Thank Flag Link Wed Oct 14, 2009
Hello Mar,
My name is Loretta Hartfield. I am a REALTOR in Inglewood, CA. If you are considering lising your home for sale there are sevealfactors to consider.

First you must ask youself why are your considering listing your property? What are your motvations?
Secondly, you will need to know the market value of other homes listed and sold in your area in the last 3-6 months, for a more accurate price gauge. Third, you will needd the the assistance of a good REALTOR to help you through the process and provide you with the most current information in order for you to make the best decison for your financial outlook. You also require the services of agood bank or lender to give you the best advice on mortgage rates and to answer any financial questions you may have.

Finally you must work diligently with your REALTOR ,and/or Lender, to detrmine if in fact this is the best transaction for you at this time in the sales market. Good Lck with your decision.

If I can be of assistance please eel free to contactt me.

Respectfully,
Loretta Hartfield
REALTOR
(310)259-4378 Diect/Cell
Teresa Peters
Executive Realtors
1601 Centinela Avenue, Suite#5
Inglewood, CA 9032
Office:(310)665-1145
E-Fax:(310)988-1214
0 votes Thank Flag Link Tue Oct 13, 2009
The market is ripe for buyers but as usual there are two sides to every story. If your considering selling to upgrade you're also in a position to gain alot of ground on your new home purchase. Mortgage rates are still incredible and just like you won't get as much for your home as you would have a year and a half ago, you won't pay as much on the new one either. That means your coming out ahead on two counts and you'll gain equity quicker on a more expensive home.

However if your considering selling to downsize the market may or may not work in your favor. Much like upgrading, mortgage rates can translate into great deals and your payments will likely not only be lower, but considerably lower (the same if you moved into a comparable home) due to rates alone. However you'll lose ground on resale value because a smaller home doesn't gain equity as quickly as a larger one.
Web Reference: http://www.JohnCJones.com
0 votes Thank Flag Link Tue Oct 13, 2009
Hey Mark, I would determine what is the/ your motivating factor to sell. In a down market, it is a good time to up size to a bigger house. Just talk with a local agent on your exit strategy. For example if you sell your house where will you live?

Motivating Factor?
**Make a profit
**Relocating
**Up Size to a bigger House
**Down Size to a smaller home

John Ehlers – Remax
Web Reference: http://www.johnehlers.com
0 votes Thank Flag Link Tue Oct 13, 2009
Mark,
Congratulations on being in a situation where you have the choice to sell and leave with equity. Now is a great time to buy with many houses remaining on the market for longer periods, with homeowners strapped with financial obligations beyond their means, and with many unfortunately losing their jobs. But I caution you not to put yourself in the same situation by taking equity from your existing home to buy another or a second home. If your home has held good value during this economic downturn, and you want to get the most out of it now to buy a home with more value for the money, yes you might consider selling now. Or, if you are wanting to downsize and you can come out in a win-win situation, then selling is a good idea.

Take the time to evaluate your financial situation before making this large decision.

Richard Harvey
0 votes Thank Flag Link Tue Oct 13, 2009
People buy and sell homes for any number of reasons....if your information is accurate and the local RE market activity supports this, you should be on fairly solid ground to make a move.......

Contact a local real estate professional for their advice,

Best wishes

The Eckler Team
0 votes Thank Flag Link Tue Oct 13, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer