Market Conditions in 33617>Question Details

Msz, Both Buyer and Seller in Tampa, FL

My husband and I are considering seling the condo I bought 2 years ago in order to take advantage of the

Asked by Msz, Tampa, FL Thu May 8, 2008

great deals right now. Unfortunately, if we were to do this we would probably lose about 5-10K in the process. Should we sit on the small property with a growing family or take the loss?

Help the community by answering this question:

Answers

12
I would recommend that you take advantage of the market to upgrade as to your family needs. Your loss doesn't sound nearly as bad as many Owners trying to sell condos in this challenging market. You would make up your small loss on the gain of BUYING and appreciating as we come out of the down market. Good luck to you!
Jim Soda 941-809-7759
Jim@JimSoda.com
My BLOG: http://sodasells.wordpress.com/
Prudential Palms Realty Web site: http://www.JimSoda.com
Sarasota-Lakewood Ranch-Siesta Key-Longboat Key
Immobel International Property Realtors
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Wed Apr 22, 2009
If you bought 2 years ago you are down more than 5-10K, especially with condos that have dropped in value like a rock. Also it takes 10% in transaction costs to sell a property (6% commission, closing costs on the next property you buy, other incidental costs). So with the associated costs of selling a property and buying a new one, you are down more like 20-25K, perhaps more. Prices currently reflect late 2003/early 2004 on average. I would rent it out if you want to take advantage of the buyer's market.
0 votes Thank Flag Link Tue Dec 9, 2008
I'm not an accountant, and there are various accounting issues that enter into the equation. However...

Think of it this way: If you were to lose $5,000 when you sell your condo, that's just the same (cash in, cash out) as if you paid $5,000 more for your new property. So, if you sold at a $5,000 loss, but acquired a new property that met your needs at $25,000 under today's comps, then your net would be a positive $20,000 ($5,000 loss offset by $25,000 in instant equity). So, don't be afraid of a small loss is it's a stepping stone to a larger profit.

Also, Scott is right that a $5,000-$10,000 is nothing in today's market. If you sell, just make sure you get a great Realtor and that your property is staged and looks terrific. Squeeze every last penny you can out of the property.

Good luck.
0 votes Thank Flag Link Mon May 12, 2008
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
I would lease2own the property where you would eliminate your financial responsibilities to the property (NNN Lease). At that point you can borrow more funds to buy the home you want.

Other thought.. a 5 - 10K loss, especially if its on paper, is nothing in this market.

If you'd like to know more about the lease2own or need a down payment for the next property you purchase I might be able to help.
0 votes Thank Flag Link Mon May 12, 2008
Here is an article confirming what I just mentioned...
0 votes Thank Flag Link Mon May 12, 2008
For someone like you, that bought 2 years ago, My suggestion would be to lease your condo until property values rebound because they will and buy now while the deals are out there! I would use 5-10k to put down on a new home (or keep in reserves) instead of taking a loss.

Its not like stocks, they can land anywhere.. .Real Estate ALWAYS appreciates and history shows that it moves in cycles, we are in the middle of one of those down cycles right now.

let me know if I can help 813 -777-1196

All the best to you and your growing family.
Katrina Madewell
0 votes Thank Flag Link Mon May 12, 2008
If you don't need to sell right now (job loss, transfer, etc), I would hold on and not incur the loss. If your finances and credit give you the ability to buy a larger home, this is the perfect time. Prices are low, the values abound and the interest rates as so low that it makes perfect sense to take advantage of current conditions. As for the condo..the rental market is strong. If you bought low enough for the monthly rental to cover your expenses(mortgage, HOA, Insurance & Taxes, this is a good way to build your future real estate wealth. Be sure to get credit & finance information for the tenant first & prepare a good lease.
0 votes Thank Flag Link Fri May 9, 2008
You have to look at the opportunities in hand. If you are able to buy a property a 10-15% discount becuase of this market and are only going to lose 5% on the sale of your home it might be right for you. Would you be able to cover your expenses for your condo if you rented it for the next 18-20 months??
0 votes Thank Flag Link Fri May 9, 2008
Msz,

To see the light, it might be beneficial to view the 5-10K loss as the cost for finding the happiness your family is seeking.

Our best wishes,
The "Eckler Team"
Century 21 Almar and Associates
Venice, Fl 34285
0 votes Thank Flag Link Thu May 8, 2008
No one can make this decision, but you and your family. It's true that you may take a loss on the property, because you have only owned it for two years. However, there are some great deals out there and you could possibly make it up on the buying end. Not to mention the property tax reform. The joint resolution allows homestead owners with an accumulated SOH benefit to transfer 100% of the benefit (up to a $500,000 benefit) to a new homestead if they "upsize" to a home of greater value. My advise would be to find a good agent and discuss your options with them. If you don't have an agent I would be more than happy to refer you to some great ones I know that work in your area.

Shonda Sauls ,REALTOR®
Prudential Network Realty
(904)260-4300 #625
Shonda.Sauls@PrudentialNetworkRealty.com
http://www.prudentialnetworkrealty.com/agent.aspx?id=34733
0 votes Thank Flag Link Thu May 8, 2008
It could be up to 5 years before you get your money back. If you can rent the condo and buy that would be one way tio go.
Web Reference: http://www.thebruniteam.com
0 votes Thank Flag Link Thu May 8, 2008
Hi Msz :
Advantages and disadvantages mutually reciprocate one another in Real Estate deals... I would sit down and I would give a cold look at what I have in my hands at the moment and what the future brings . Buyers are looking for substantial price reductions which studies suggest will not occur , the high rate of foreclosures , short sales , REO etc are depressing the market and unfortunately buyers still looking for "steal deals" ... If you are looking to get a house for you and your growing family now is a good time to buy as long as you can find the right deal and as long as the deal you find is better than the loses you are going to take when selling your condo ... I would look first and act later (If I take 10 eggs from my basket , 2 of then break but then I put 15 back .. I still have 13 eggs .. better than what I had before )

I hope my opinion will be of help ...

Best regards and good luck in your endeavours

Maria
0 votes Thank Flag Link Thu May 8, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer