Tina

If you put $40,000 down you should be in an equity position to sell the home. You just won't be able to get all your money back. Home prices in Roy have not increased since January '07. Your home is probably worth what you paid for it. Even so, selling would be a better option for you than getting behind in payments that you could never make up, leading to a foreclosure. Your costs of sale will be 3% plus the commission. This makes the total 8-9% so you can do the math to figure out where you'd be if you had to sell at the same price as you paid. Another alternative is to call your lender and see if there's some short term solution to those high monthly payments so you can hold on longer. Whatever you do, don't get behind in payments. That's a one way street you don't want to travel.

Hi Tina, this is a very common situation many of our fellow American find themself in, I really wish I could wave a magic won and poof it's all gone, but we both know that's not the case! My best advice to you is to remain postive and keep believing that your home will sell, also realizing that we're beyond the point of sticking a pole in our yard expecting for our home to sell, I guess what I'm really trying to say is ensure that your agent is fully representing your best interest by keeping flyers in the box open houses etc!!! The most encouraging fact is the market is changing to your advantgage, if you like more information go to http://www.thewbhometeam.com takecare and I wish you the best... Stan

Tina
give us an update
were you able to sell it

anyways

good luck

Tina,
You are in a situation that many people are facing. Although you may feel like you are alone, you are not! This is the hardest part of a Realtor's job in this market. You need to sit down with your Realtor (if you have not already) and go over the numbers. Once you figure out your bottom line number you can sell for, reduce the price! Another thing to keep in mind is you may not be able to recoup your down payment. The market has declined since January '07 and your home may actually be worth less than when you bought it. This will depend on your home and area. Next, go talk to a lender and figure out where you will be financially once you sell your house. Figure out what you qualify for and start looking right away. Once you get a contract on your house you will then be able to go purchase something else. If you're lucky you will already have found one you want and will be able to purchase "pending sale of buyer's property." This means that you will include a contingency stating that if your house doesn't sell you are unable to purchase the new house. The other option is to purchase a new home on contingency of yours selling but considering it's already been on the market almost a year another seller may not take your offer contingent. Lastly, research rents in your area. With a mortgage of $1825 I am not sure rent will cover it but worth the research. Again, your Realtor can help you do this. You have resources to help you so do not be shy about using them. Your Realtor can/should help you and if he/she doesn't have the answer they can refer you to lenders, CPA's, etc. Good luck, I hope you have a good buyer come your way soon!

Julie Sweeney

HI Tina,
Yours is a difficult situation faced by many in our market today. When our market was red-hot, everything was selling. I do not know the particulars on your home, but I'm pretty familiar with Roy. It is in a bit of a "no man's land" in terms of freeway access, with traffic on Pacific or Spanaway Loop just awful at commuting times. Primary buyers for Roy are most often the military, retirees, or those looking for bigger yards and the biggest bang for their buck and who willing to put up with the commuting hassles. Right now, although we have tons of military in the area, many are not buying because of the war. Many others who might buy up into your home can't do so because their homes aren't selling. Still more are questioning the cost of the commute, now that gas is so incredibly high. All this translates, along with the general economic malaise, into a situation where your home is likely not worth what you paid for it.
I've been selling real estate here in Pierce County for over 20 years. Up until the crazy inflation of 04-06, we averaged an increase in the 3-5%range, year in and year out. With typical selling costs in the 9-10% range, if you had to sell in just a couple years, you would likely have to pay money out of your pocket or your equity to make the sale. I'm sorry to say, but it is not realistic to expect to come out on top in the situation you describe, unless you made a phenomenal buy when you purchased, or have significantly improved the property since. We are currently in a flat to declining market, giving back some of the huge appreciation of '04 and '05, and although appreciation and the market will rebound, over the short term you have a tough decision to make. I think you need someone who is honest and knowledgeable to sit down and talk with you, to help you make the decision that is best for you.

So much depends on the price you paid for the house and its' current market value. It is unclear to me whether or not your home is listed with a Realtor at the present time. If not, interview and hire a Realtor who will be able to physically evaluate your home and your situation. Have you thought about renting out a room or two until your home sells?
In terms of buying another home right away that depends on what you qualify for in terms of price, payment, credit, employment, etc.

Rent it out....................

You have some good advice already, the best being to get a CPA on this case. WARNING: you have been in residence less than 2 years, so I think you would not qualify for forgiveness of some or all capital gain (if there is any) tax if you sell now or if you lease now, then sell. On the other hand, leasing now & turning the place into investment real estate may have some nice tax benefits to offset that. Again, get a CPA.

Marvin (ps, not a CPA)

Tina
I am sorry to hear of your situation. You have some interesting posts so far, most of which I can see are trying to be helpful. One of the challenges in Trulia is that we do not know your complete situation, so (no offense to those responding) sometimes I think we mean well, but because we don't have all of the facts, we make suggestions that may not meet your personal needs.

First of all, I do not know Roy (disclaimer). My sister in law lives in Auburn, does that count?

A couple of suggestions:
1. Did you like the Realtor that represented you when you bought the home? They might be a good place to start. If not, ask around, Trulia, the other posters, etc. but you are going to want to talk with a few Realtors to get a feel for your options.
2. You need to know that it is likely you may have more optoins than you think. Without knowing all the details of your asset disbursement, it would seem to me that if your residence is the biggest asset, and the market is soft, there might be some negotiating room on the best way to handle the situation.
A. Selling a home in a soft market is not the end of the world, however after talking with some Realtors you may find that the net proceeds (what remains after paying the mortgage balance and closing costs) is less than you thinik. If your plan is to downsize, you are probably thinking of taking your hafl and buyring something.

B. I would have a Realtor figure out how much you would llikely net, then what you could buy with that amount of downpayment, what would your monthly payment be? How much different than what you are paying now?

C. There are options other than selling. You might be able to lease it out. I would ask a CPA to run some numbers for you so you understand the financial consequences of your options. Leasing it out may not be the best option, however compared to selling it...well it might be.

3. A word on selling in a soft market. In a buyer'[s market, buyers are looking for value. It is temping to price it high so you have room to negotiate. the truth is that in almost all cases the listings that sell within the first 30 days on the market sell closest to asking price. I am unaware of ANY statistics that support the idea that if you list it high and wait four months that you will eventually get your price. Now, it may be different in Roy. Personally I would ask to the MLS statistics on what listings, like yours, are selling for and in 30, 60, 90, and 1q20 day time frames.

If you decide that selling is your best option (and it may not be...)then price it right to sell and get out of a declining market.

Now, the other option is to discuss with a CPA (you are probably already doing your taxes, right) and find out what your tax picture looks like if you stay. You are paying mostly interest, so I think after taking into account Uncle Sam you might be better off than you think If you have more than one bedroom, maybe roommate would be an option.

Hope this helps.

I viewed your tax record and the listing from when you purchased youir home and I ran some comps in Roy for some recent pending and sold homes that we could take a look at to come up with a price for your home. The average market time in this market is 4-6 months. The more aggressive the pricing, a marketing plan, some good preparation and staging, the shorter the market time. There are approximately 20+/- homes available in the Roy area currently that would potentially be your competition. We would need to study those in more detail to see where your house fits into that list. debi.rice@comcast.net (253) 307-6303

Dear Tina,
About your equity, it is a matter of what you owe on the house and what we can sell it for. We can do a fast sell in this market, but it may not be at a price you would like or you may not get out the $40K in equity. Each Realtor will need to sit down with you and see what all the parts are to this house to make sure you get the top amount and get you out of this situation.
Let me know if I can help.
Blessings & Good Luck.

There may be a way to refinance the house to get a lower payment for the short term until the market changes and you can sell at a profit. We could discuss the details and options personally. I used to live in Roy, so I know that market. I am now in Tacoma, but am in Roy every week. debi.rice@comcast.net