Pjf, Both Buyer and Seller in Valencia, CA

Would you rec. selling a condo now for a loss and trading up to a lrg. home....or wait till market is better?

Asked by Pjf, Valencia, CA Sun Sep 30, 2007

Currently in a 1700 sq. ft. Condo considering going to a 2000-2100 sqft house.

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Answers

9
Condos have increased significantly more than single family homes. This one is an easy call. Sell the condo and by the home.
0 votes Thank Flag Link Wed Oct 16, 2013
I would sell now because the larger home you want to buy has dropped significantly since 2007-2008. If you wait to get more money for your condo, you'll end up paying more for the larger home. Example: If you condo was worth $400,000 at the top of the market and it lost 20% in value, the value would now be $320,000. If the larger home was worth $500,000 at the top of the market and also lost 20% of its value it would now be $400,000 or cost you $80,000. Let's say the market goes up 10% and your condo is now worth $352,000 you'll get $32,000 more for it but what will it now cost you to buy the larger home at $400,000 that also went up 10%. You would now pay $440,000 for it or $128,000 more. That's why I would sell it now.
0 votes Thank Flag Link Mon Oct 14, 2013
Pjf, did you ever sell that condo and make your move to a larger home?
0 votes Thank Flag Link Sun Aug 26, 2012
Pjf, I live, work, and play here in Santa Clarita, and though some of our condo markets have went down a good deal, some areas have actually APPRECIATED over where they were last year. Would you consider contacting me through the website below (so as to preserve your personal information) and I can do a full CMA for you. My CMA would also show you the advantages as well as the disadvantages from a monetary point of view to move now versus when the market starts to heat up again. I have some other buyers who are facing the same situation, and I would be happy to talk to them to see what were their deciding factors...I do know one was proximity to a good school for their children...anyway, let me know if you would like my assistance and I will be more than happy to oblige!
Web Reference: http://www.TerraBruns.com
0 votes Thank Flag Link Sat Feb 9, 2008
Pjf, I know that the condo market in Santa Clarita has taken a hit. How long have you owned your condo? Have you considered leasing out your condo and holding on to it for a few more years? We are in a buyer's market.

The thing to do is to weigh your situation. Do you NEED to move? If so, then go for it. You can get your new home for a better price now than last year.

I'm not far from you. Let me know if I can help.

Dot Chance, The Chance Team
Keller Williams Realty
818.432.1671
Web Reference: http://www.DotChance.com
0 votes Thank Flag Link Mon Oct 1, 2007
This is a tough question to answer without knowing your full situation. When you say your selling your condo at a loss does that mean you owe more than it's worth? Do you need funds from the sale to buy this other home? If it made financial sense to rent your condo then I would buy the home with a long term outlook. Once you do buy the home, based on past market cycles in California you may need to live there at the least 5 to 10 years before you will see appreciation. In general, homes are more appealing to buyers and will likely appreciate faster when the market strengthens. But you need to ask yourself these and many more questions before you make a move. Good luck to you and call our firm if you need further advice. Take care
0 votes Thank Flag Link Mon Oct 1, 2007
If you don't have to sell now knowing you will be taking a loss, why would you? Unless, you will reap the savings on the larger home you plan to purchase, and if the market increases, that purchase may be out of reach for you. Do the math and see which makes more sense: buying now when both properties will cost less, or buying in the future when you will not sell at a loss, but will pay more for your purchase.
Can you hold onto the condo, maybe rent it out, and purchase the new home? Then when the market increases, sell the condo.
Most importantly, talk to your accountant. The tax benefits may actually outweigh the loss, too.
Web Reference: http://www.dianeglander.com
0 votes Thank Flag Link Mon Oct 1, 2007
Hi Pjf,

Have you had a CMA done on the condo you currently own to see what kind of a loss you are talking about? You are right to think that even if you might be selling your condo for less than you might have a couple of years ago, you will also be able to buy a home for less than you might have paid for it then as well.

I would be happy to give you a CMA on your home to see where your home's value currently stands.

Please feel free to give me a call or send me an email and we'll see if I can help you.

Take care and have a wonderful day!

Tisza Major, Realtor, Keller Williams (909) 837-8922
Web Reference: http://Route66Living.com
0 votes Thank Flag Link Sun Sep 30, 2007
Great question--what is your delta or differential between what you expect to sell for/buy for now vs. a few months or a year ago? If you get lower but it gets you the same or better home now, it makes sense to move forward. If not, look at the trends to see if what you want to do appears possible in the next few months/year.
0 votes Thank Flag Link Sun Sep 30, 2007
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