Jeff, Other/Just Looking in Gloucester, MA

My mom has a home on Rt.133 in Gloucester. What would be the best time to sell and not re-purchase, based upon the following details:?

Asked by Jeff, Gloucester, MA Wed May 19, 2010

Mom purchased the home for approx. 400,000 and was just told she should list it at no more than 319,000. Mom has a mortgage of approx. 342,000 and would likely pay a realtor 16,000 to sell at the 319,000. Mom would have to now chip in an additional 39,000 out of pocket to pay off mortgage. Mom works with a health condition and needs to retire within the next several years. Mom would be left relatively poor if this happens. Should mom hold out or sell now? Will the Gloucester market get worse over the next two years and therfore the time to move is now? Please share your opinion and belief. Thank you for your valued time. Jeff

Help the community by answering this question:

Answers

7
Dp2’s answer
Assuming that her property comps out at $319K, it would take nearly 2.5 years with 3% annual appreciation for a little more than 5.5 years for her to break even. That's a lot of ifs; unfortunately, property values aren't trending in her favor. A short-sale isn't her only option. Other options are deed in lieu, selling with creative financing, equity partnering, etc.
0 votes Thank Flag Link Thu May 20, 2010
With the other posters, I think we're all looking at slow, but steady growth.

A financial advisor is probably more of who you need, but if you did the short-sale now, and then rented at a lower price point, it is very likely that you'd be in a better financial position than holding on to a property that is eating away at all her earnings. Worst case now, she's at zero, with a chance to save. In the future, she could still be near zero, with no chance to save. So examine what rental options exist along with her current income to determine which route makes sense.
0 votes Thank Flag Link Thu May 20, 2010
Jeff, reading your question, it seems you want only an answer so here it is.
In my opinion, if you feel she can hold onto the property for the few more years it could very well come closer to your goal to hold off. This is a buyers market and even if you start at 342K which remains to be seen as I would need to do a proper market analysis, the buyer is going to chew away based on the fact that the are in fact in control at this point.
Fact is no one has a crystal ball, but we all hope the market will again regain strength and if you can hold off, maybe I can rent it for you if you feel that is an option. In my opinion wait if you can, if not then you must do what the market says at the time of the sale.
Again, this is only my opinion.
If you need anything, I will be more than happy to help you no matter what you decide.

J.M. Jones 978-335-9092 Century 21 Northshore
0 votes Thank Flag Link Wed May 19, 2010
Jeff,

The market will most likely improve slightly in the next 2 years, but probably not enough to reach the balance of the mortgage. Your mother may be a candidate for a short sale, but it would depend on the lender(s) and several other factors, including how much money she has in the bank under her name (if she has too much, the lender will likely require that she use those funds to pay any shortage). The fact that she has health issues may work in her favor when negotiating a short sale wit the lender.

Jim Armstrong
Web Reference: http://armstrongfield.com
0 votes Thank Flag Link Wed May 19, 2010
If it's her primary residence she might be able to explore a short sale where the difference in what she owes and what it sells for would be foregiven in it's entirety. Depending upon her age as well as general outlook over next several years/decades you might also wish to consult with an estate attorney in addition to a short sale negotiatior. Just be very careful who you rely upon. Ask friends, family, colleagues or other trusted people in your life for the name of an estate attorney, real estate professional they've used recently and been very happy with and has local knowledge. Interview them & see what their suggestions are especially in regards to your mothers potential health concerns.

Hope that helps,
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Wed May 19, 2010
2 years is to short a time frame. Maybe in 5-10 years prices will increase. In 2-4 years I expect more downward slide of prices.

If she is facing a hardship perhaps the bank would agree to a short sale. That means she sells the house takes no money from it takes no debt with her and the bank agrees to take the loss. Asking her lender about this may give a good option.
0 votes Thank Flag Link Wed May 19, 2010
Hi Jeff, Call me and we can talk if you free - you have many options - I am here in Gloucester - I live near the Blvd. I think I can help - 978-335-9092
0 votes Thank Flag Link Wed May 19, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer