Home Selling in 60618>Question Details

Maha, Home Buyer in Chicago, IL

Will I lose money if I try to sell now???

Asked by Maha, Chicago, IL Tue Aug 17, 2010

I purchased a new construction condo in Chicago late 2008. It was listed for $390,000, but I bought it for $350,000 plus $10,000 for closing costs. It is a very nice unit with lots of upgrades, but I have to sell it within the next year. Do you think I can still get what I at least paid for it? I know there are a lot more factors that go into this, but I would just like to have a rough idea what the market is currently looking like.

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Answers

23
If you are planning on selling your home in the next year the time to sell is definitely right now. This is not the bottom of the market and pricing is not expected to recover to where it is at now until the end of 2012. This is based on the following information:

The Macro Market Home Price Expectation Survey
Bank of America Pricing Forecast
Moody's Economy - possible scenarios

Moody's also states that with the wave of option ARM mortgages (adjustable rate mortgages) coming due there may be as much as another 20% decrease in home values that would push a home value recovery out to the middle of 2013. However most analysts are predicting another 5% decrease over the next two years.
1 vote Thank Flag Link Sat Nov 27, 2010
Hi Maha, If you want to know what you can sell your home for go to cyberhomes.com they will give you the most accurate current market value. As an investor cyberhomes is the only site I trust when evaluating a home for purchase.

Thank You
Adam T Barrera
Innovative Property Solutions
1 vote Thank Flag Link Wed Aug 18, 2010
The question is how much have you lost and how much will you loose in the next couple of years as we have not hit bottom yet. There's a few options available but it all depends on what your long term goals are, definitely talk to an agent about a CMA and then determine what would be your best option, wether to right out the storm for the next 10-15 years or stop the bleeding and start fresh in the next few years?

Good Luck!

Jose Hernandez
Keller Williams, Gold Coast
0 votes Thank Flag Link Wed Nov 24, 2010
It would be to your advantage to wait as long as you can before selling. The real estate market is cyclical and we are presently on the downside so it is not a good time to sell as you most probably will lose money at this juncture.

Laurie Van Horn
N.T. Callaway Real Estate
0 votes Thank Flag Link Wed Aug 25, 2010
Yes there are a lot of factors to your scenario before someone could give you a definite answer. Unfortunately, I would say with almost certainty that you will be losing money. We are in a declining market & it is very difficult to warrant a price increase over any recent purchase (aside from a rehab of a distressed sale) or even sell for the same purchase price. The buyer's agent/buyers are well aware of market conditions since your purchase.

I would just contact a Realtor and have them run scenarios for you to get a more accurate picture of what to expect.
0 votes Thank Flag Link Wed Aug 25, 2010
Maha,

You are right there are plenty of factors but most signs would point to yes, you could lose money.

That being said, you need to consider why you want to move and what your plans are.

If you were buying a new home at a higher price point, the 5% hit (hypothetically) you could take on your place may also save you 5% on a larger place. If you plan to move to another home, be sure to sell your place first.

The key to selling in this market is pricing it right and getting your home the exposure it needs.

If you are in need of a Comparative Market Analysis (CMA), I would be happy to prepare on for you. Just because today might not be the right time to sell, you should be aware of where your property's value is.

Best,
Rebecca
Web Reference: http://www.jameson.com
0 votes Thank Flag Link Wed Aug 25, 2010
Maha,

You are right there are plenty of factors but most signs would point to yes, you could lose money.

That being said, you need to consider why you want to move and what your plans are.

If you were buying a new home at a higher price point, the 5% hit (hypothetically) you could take on your place may also save you 5% on a larger place. If you plan to move to another home, be sure to sell your place first.

The key to selling in this market is pricing it right and getting your home the exposure it needs.

If you are in need of a Comparative Market Analysis (CMA), I would be happy to prepare on for you. Just because today might not be the right time to sell, you should be aware of where your property's value is.

Best,
Rebecca
Web Reference: http://www.jameson.com
0 votes Thank Flag Link Wed Aug 25, 2010
The answer to your question depends on many factors such as location, health of your building association, number of other units for sale in your building, recent sale prices of similar properties in your area and your building, etc.

In general, most sellers in the market who purchased at the height of the market are unlikely to be able to sell their properties (assuming no great improvements were made) for a price equal to or higher than the price at which they purchased.

That being said, if a homeowner is going to sell his or her home and then purchase another property, the difference is likely to balance out on the buy end - or one might even "win" financially if the property one is purchasing is discounted more than the home one is selling due to the market.
Web Reference: http://www.dreamtown.com
0 votes Thank Flag Link Wed Aug 25, 2010
Your best bet will be to have a realtor perform a CMA for you (one now and another one when you’re ready to sell).

Mike Yun, Broker
Jameson Real Estate
(414) 526-8998
0 votes Thank Flag Link Wed Aug 18, 2010
You would need to have someone do a comparative analysis for you.
0 votes Thank Flag Link Wed Aug 18, 2010
Hello, Maha. One would need a crystal ball in order to answer this question! But, it might be helpful to ask a few Realtors to do a current market analysis based on sales in your neighborhood and other condos within your development to get an idea of the present market.

Future sales will be influenced by interest rates (if they go up) and the overall economy.

Laurie Van Horn
Realtor Associate
Pennington, NH
0 votes Thank Flag Link Wed Aug 18, 2010
The rough answer is, it is a rough market in most places right now. There is no way any of us can give you a concrete answer to the value question. I do have a few suggestions for you, however.
One, as a Trulia user, you can set up a search now and go and see what Trulia says units similar to yours are currently valued at in their Automated Valuation Model (AVM). The accuracy of this tool is not consistent, but it is a good starting point for you.
You can also continue to track and record the activity and prices in this search over the next few months to see how the market in your area is trending. In this environment, the key to pricing is being attractive to the buyer pool looking at housing like yours at the time it goes on the market, and staying at a competitive price until the right buyer finds your home. That price point is a moving target and your data will be a great resource when you are trying to determine when it is the right time to sell.
Best of luck with those future plans.
0 votes Thank Flag Link Wed Aug 18, 2010
Maha,
It depends on the building and the area, but most likely you will have to come out of pocket to sell. Your best bet is to call your agent up and have them draw up a CMA for you. If you dont have an agent, go out and interview about three and see what they say. I would be happy to help.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696
0 votes Thank Flag Link Wed Aug 18, 2010
Chicago is a large city and values tend to be neighborhood specific. If you would like to see average sales prices of like-type homes in your locale in the last 3 years on a year to year basis, feel free to e-mail me at JGall@realtyexecutives.com.
0 votes Thank Flag Link Wed Aug 18, 2010
Please call me at 847-287-4901 for free market analisis(CMA ).or email: dorotazielinski@yahoo.com.
Thank You

http://www.dzhomes4u.com
0 votes Thank Flag Link Wed Aug 18, 2010
Hi Maha, my suggestion is for you to call a Realtor in your area, and I have them do a comparative market analysis, that way you can see what the property is worth at the current market!
0 votes Thank Flag Link Wed Aug 18, 2010
Hi Maha,

If you are thinking about selling your home I would suggest that you do it sooner rather than later (especially before the Holidays since winter is generally the slowest time of year for Chicago Real Estate. Mortgage rates are the lowest I have ever seen them making it more affordable for those looking to buy. You will probably not break even on your property but if you're planning on buying another home somewhere else you can definitely buy on the lower side. You can easily make up the difference on your purchase.
0 votes Thank Flag Link Wed Aug 18, 2010
Probably so. Prices of new construction in the downtown area from 2005-2007 were based on the 'bubble' mentality and paying 350K when listed for 390K did not compensate for the big drop in prices that actually occurred. You may have a problem, but give me the address and I can do a CMA.
Prices have continured to be flat to lower since 2008 and most of the new construction buildings in the downtown area have 'issues', espeically if you are still competing with the developer who is still trying to unload some of the remaining units.
I do not see any logic in suggesting that you will be compensated for your loss when you buy.

philip
0 votes Thank Flag Link Wed Aug 18, 2010
The longer you can hold onto it, the better. Who knows what the market will be like 6 months or a year from now? Let's hope prices continue to rise!
0 votes Thank Flag Link Wed Aug 18, 2010
Chances are you will not get what you paid for it since you are competing with short sale and foreclosure listings. I specialize in short sales and may be able to assist you in selling the unit for less than what you owe. I would need to know specifically why you need to sell and the specifics of the property to evaluate your situation.
0 votes Thank Flag Link Tue Aug 17, 2010
Hello maha,
If you lose out on this property with a certain amount of a loss, you can make that up on your buy.
0 votes Thank Flag Link Tue Aug 17, 2010
Hi Maha, I could do a quick CMA for you and post it to a personal webpage for your review. All I would need from you is the address of the property and some basic information about it (number of bedrooms, number of baths, etc.) and your name and email address. Let me know if you are interested.
0 votes Thank Flag Link Tue Aug 17, 2010
Hi Maha,

Contact a local Realtor in your area to do a comparative market analysis on your property and tell you what it's worth so you can make an informed decision. It is free and will let you know where you stand.

Good Luck!

Chris Blasic
Realty world
0 votes Thank Flag Link Tue Aug 17, 2010
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