Home Selling in Jackson>Question Details

Cathyvat, Home Seller in New Jersey

I bought my Jackson NJ home for 600k and owe about 200K . should we take a lost and make it up with what we can save on taxes, utilities n mortgage?

Asked by Cathyvat, New Jersey Fri Mar 18, 2011

We have a 3200 SQFT home in Jackson NJ homes in our nieghborhood are being listed anywhere from 325k to 525k. With all things being realitive is it worth taking a 100K lost, but a smaller home for cash , with lower taxes and up keep. Could we make up for that kind of lost by eliminating the large monthly overhead?
Should we sell now or wait it out?

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Answers

9
The BEST advise I can give you is that You should really consult with an accountant or your attorney before making any moves. This way you know what is really in YOUR BEST interest!!! After you do that If you would like to use my 31 years experience in the business to help you, I would be happy to. So please feel free to call me...Good luck to you!

Suzanne Clark
Crossroads Realty, Inc.
732-278-9718
0 votes Thank Flag Link Sat Mar 19, 2011
Wait, for what? I don't know Jackson, I do know Real Estate, 40 + years in the business. You have a chance to make your move, do it NOW. To many people (sellers) are frozen like a deer in headlights. Interest rates should start to climb in June, feds stop pouring money in. More homes on market has banks get their act together. Japan has been in a 20 year cycle of stagflation.
IF you make the move and it isn't correct, you will be in a debit free home. Not the worst situation.
Get the info as to what is sold in your area: http://www.RealEstateInOceanCounty.info It shows the homes for sale too.
My company, Crossroads Realty, has agents in your area if you need one on one help.
Ask the questions, they are good ones. Keep knowing we will get through this worst recession since the last worst one.
0 votes Thank Flag Link Sat Mar 19, 2011
Hi Cathy,
I am a life long resident of Jackson & know your market well. I've been selling homes here for over 20 years.
If you are in over your head so to speak & the taxes, utilities and maintenance of a larger home is not for you then scaling down would be a good decision. I also attended the Otteau Appraisal market forcast seminar recently & as mentioned earlier ,you are not going to see any appreciation for quite some time, so making a decision to live in a smaller home with less overhead now rather than later sounds reasonable. There are plenty of homes to choose from if you are looking to downsize & prices are very affordable . If you'd like to chat further about your move & get an accurate home evaluation of your present home & also see what is out there for you, feel free to contact me.

Joan Congilose CRS,GRI, e-Pro
RE/MAX Central
(732) 972-1000 x 364
(732) 232-5277
0 votes Thank Flag Link Fri Mar 18, 2011
Hi Cathy,
since you still have equity. You at least have the option to sell and downsize.
You need to ask yourself what is your long range plans. Will lowering your" real" costs( taxes, heating, maintenance,etc) increase your family's ability to achieve those goals? My guess is yes.
The loss of equity is terrible .But is is a loss on paper. The market will most likely not come up to recover the loss of that equity . Since it is generally agreed that the prices of homes at the top of the market were a aberration not the norm. If you considered your home a financial investment for the future . You must do what good investors do. Mitigate your losses sell the investment costing you money. Then take that money and buy a house now when it is at the bottom. Then you will take the loss now on paper. But the equity growth in a home bought at the bottom of the market should counter that initial loss.Plus the drop in your monthly expenses should further balance the loss.
Web Reference: http://Flanaganrealty.com
0 votes Thank Flag Link Fri Mar 18, 2011
Hi Cathyvat,

It's a tough decision to make, I am not sure what development you are in to determine where values might go over the next few years. If you think your home will go down another 30-40k in value but then it will raise 100k in value when the market returns then you will be looking at a 60-70k difference. Depending on where you buy, what your mortgage payments presently are, what your taxes presently are all depends on whether it is a smart move. If you want to send me a quick email I will be more than happy to review the situation, based on what you have and what you are looking for to show you some actual numbers to help make a decision. Thanks and good luck!


William F. Troy
Broker-Salesperson
REO/HUD Director
Pre-foreclosure Specialist Mastery Certification
RDC PRO, SRES, e-PRO, CDPE, Luxury Home Team
Veltri & Associates Realtors
1012 Cox Cro Rd.
Toms River, NJ 08755
Office-(732)557-4600 ext. 422
Cell- (732)600-1570
Fax- (732)557-6425
wtroy@veltrirealtors.com
http://www.veltrirealtors.com
0 votes Thank Flag Link Fri Mar 18, 2011
I can relate to what you are going through! Even realtors aren't immune to the ever-changing market values. We once owned a picture perfect, newly constructed home in Jackson. It was a charming colonial complete with wrap-around front porch. There we stayed -- the prime lot in the back of a quiet cul-de-sac for 7 great years during the early lives of our children. And then a new development cropped up behind us. We felt it was time to buy land and start from scratch again. It was hard decision, especially since we knew we would be getting less for our house than we paid for it.

Even though we took a "loss" on the equity we though we should have earned over 7 years, it was also a great time to move on in our lives (not to mention, we found a beautiful setting for our next home). Twelve years later, we don't think we made a mistake. I hope that helps. If you need some assistance in sorting it all out (market values, etc.), don't hesitate to give me a call -- that's what I do.
Web Reference: http://www.phildefusco.com
0 votes Thank Flag Link Fri Mar 18, 2011
Hy Cathy,

The best way to determine the best move is to start out with a full proper Market Analysis. I am an agent specializing in Jackson Township. Please feel free to call me at 732-915-4847 or e-mail Lsoubasis@weichert.com to discuss.

Regards,
Lisa

NJAR CIRCLE OF EXCELLENCE SALES AWARD 2006 BRONZE, 2007-2010 SILVER
TOP PRODUCER 2006-2010
TOP SALES AGENT 2006-2010
TOP LISTING AGENT 2006, 2008-2010
WEICHERT REALTORS AMBASSADORS CLUB 2007-2010
0 votes Thank Flag Link Fri Mar 18, 2011
This is a great time to downsize. You have a higher buying power because of a lower interest rate than when you initially purchased and as you are experiencing firsthand, prices have come down. By purchasing a smaller home not only do you greatly lower your monthly payment, but also the monthly overhead that goes along with having a large home. If you waited to sell you would be looking at more vanished equity plus higher expenses for where you are currently living (taxes, etc.)

My husband and I recently downsized and bought our new home outright. It was the best decision we ever made even though we took a hit of about $65,000 when selling. Now we are enjoying mortgage free months, smaller utility bills and a much more relaxing lifestyle! Best of luck to you and your family. If I can answer any other questions, please don't hesitate to contact me.
Web Reference: http://www.NJhomevalue.net
0 votes Thank Flag Link Fri Mar 18, 2011
I can't answer how long it would take you to make up the loss, or whteher or not it is worth taking a 100K loss, without additional information about your financial situation, but I can tell you this:
I was at a seminar for Jeffrey Otteau, Fortune 500 appraiser today. For you to make up the approximately $100K you state you lost, you would be looking at close to 10 years to get back to the height of the market sales price. There will be minimal increases in the market, much closer to normal market appreciation in the coming years, but it will be a slow process.
So can you hang out where you are for those years?
An accountant is probably the best to answer the first 2 questions questions, based on your financial position.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Fri Mar 18, 2011
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