Mcmiked, Other/Just Looking in Portsmouth, RI

Should we try and sell our condo to move to a single-family?

Asked by Mcmiked, Portsmouth, RI Tue Oct 19, 2010

We're interested in possibly 'upgrading' to a single-family home, but we'd have to sell our condo to afford it. In the current condo market, is now the right time to do this? Or is it better to wait it out a few months or so. We're in no rush, but the mortgage rates are very attractive.

Help the community by answering this question:


In order o make this decision, the first thing you should find out is how "finance friendly" your property is. Contact your Condo Association or Management Company and ask what the Owner Occupancy Percentage is in your complex and also if the Complex is FHA Approved.

The answers to these 2 questions will enable you to decide if the condo is readily marketable in today's tough market - 70% + owner occupancy and FHA Approval give your condo it's best chance to sell.
2 votes Thank Flag Link Wed Oct 20, 2010
Hi Mcmiked,
In general terms not looking at your property or the immediate area you are living in, nor where you want to move into etc.

When clients of mine in that situation ask me the same kind of question, my answer always is similar:

It is one of the best times to upgrade, selling a smaller - less valued property to move up into a larger home, or a different kind of home in a different area.... Having said that, once you completely depend on selling your
condo, then the question is, what is it worth in today's market, not what you can list it for, but what it will actually sell for, and do those numbers still bring you a net to seller, which will be enough for you closing costs on both properties and for a reasonable down payment on the next home.

That is part one of the financial part to determine...
The second financial part is how secure is your current job.....

Then put your condo on the market, market it well, and before doing so, double check with your Realtor first
what is in the market as far as single fam. homes are concerned you may want to consider, so that you DO have a clear knowledge of how much you would have to spend, what your loan amount will be like and how much our monthly loan payment taxes insurance etc. would be....

In other words be comfortable with the numbers first and be critical when looking at the numbers.

Then get a lender to provide you with a free pre-qualification letter, so that you know how much they will allow you to borrow with what amount of down payment, and whether you will be comfortable with that
expense based on your other obligations.

So putting numbers together, looking at the market, getting a true to market evaluation of your current condo...

But based on purchase price for your new home and the low interest rates available it is certainly a good time to buy, but you may get less for your condo that you may have thought all along.... Then it comes to bear, how long you have lived in the condo and what your current equity in it is....

Good Luck to you, get in touch with a good Realtor (if you need a recommendation let me know), put all the
options and numbers in front of you and then decide....

Edith YourRealtor4Life!
Your Chicago Connection
1 vote Thank Flag Link Wed Oct 20, 2010

This is a fantastic time to be moving up and while you may not get as much for your current condominium you will also be benefitting from the current market conditions when you buy yours single family home. Nobody can predict exactly what will transpire over the next few months but a qualified Realtor® can show you the inventory and sales levels and make an educated guess. However, you must remember that if you are hoping for a rebound in pricing before selling you will also be paying more for your new home.

If renting out your current home is an option (check with your mortgage lender for details) this is something that you might also consider. With interest rates at an all time low now might be the perfect time to pull the trigger!

I hope this information is helpful but if I can be of service in any way please feel free to contact me at your convenience.

Always at Your Service,

Tom Priester e-PRO
"Results Driven Real Estate"

Keller Williams Realty
561 308-0175
Web Reference:
1 vote Thank Flag Link Wed Oct 20, 2010
Contact a local Realtor to find out about how condo sales are doing in your area. The condo market varies greatly in each area, some are REO and short sale driven while others are thriving. Yes, rates are attractive but you want to be sure the move you make is the best one for you and your family. Often the condo market is a different world than the regular residential market, so make sure you research things thoroughly. Contacting a local agent really is the best way to go in finding the most accurate information.

Best Wishes,
1 vote Thank Flag Link Tue Oct 19, 2010
Is better to wait it out a few months.
0 votes Thank Flag Link Thu Oct 21, 2010

Yes, it is a great time to upgrade, property values are low and more importantly the rates are the lowest in decades. I'd be more than happy to help you sell your condo and find you a new home, call me anytime at 241-7728.


Jamie Rebello
0 votes Thank Flag Link Wed Oct 20, 2010
The sales volume in Newport County is very strong, however Portsmouth is lagging. As has been stated before by other professionals, there are many factors to consider when making this type of move. However, on the surface, it's a great time to be moving up.

Some areas of Portsmouth will have greater appreciation than others. With rates this low and the local economy recovering nicely, this is a perfect time to consider the options.

Please let me know if I can be of any further assistance.
0 votes Thank Flag Link Wed Oct 20, 2010
SELL NOW!!! You will get more today than tomorrow. In addition, when the pending foreclosures finally come through there will be that much more inventory on the market further driving it down. My suggestion would be to sell now and rent for a few months, if you can, while the market declines further. Rates should stay relatively low in the next few months. I work with short sales and foreclosures and I am seeing a big increase in short sale clients. I expect the market drop substantially over the winter.
0 votes Thank Flag Link Wed Oct 20, 2010
I agree with the other professinoals Mcmiked - waiting a few months won't make much difference. If you've owned your condo for a decent amount of time (7 years or more) and have respectable equity in it, and price it properly to sell, you should do well. Have you explored being a landlord alternatively? I've had clients successfully rent their condos (the signed lease is what the bank required to finance their new home) and capitalize on "buying low" without having to "sell low". The mortgage rates are definitely an additional incentive. Keep us posted on what you end up doing! I always love to hear what Q&A'ers decide after polling the group...
0 votes Thank Flag Link Wed Oct 20, 2010
Mcmiked, now is a great time to "move up" to a single family home. Although the average sale price of condominimus is down, you will certainly more than make up for it on the buy side as mentioned in one of the other answers, A few months in this market, is not going to increase the value of your property, so if you are thinking of moving, do it. Rates are lower than ever, and you will never find a better opportunity to get the house of your dreams. Feel free to drop me a line if you need some help with your sale or search. Joe Del Sesto.
Web Reference:
0 votes Thank Flag Link Wed Oct 20, 2010
Your question brings with it many questions.
When did you buy your condo?
What is current market value?
What are you qualified to purchase?
What are your needs in a home?
The # Bedrooms, Baths, Garages, Square footage?
What towns are you interested in.

With the answers to these questions i can help you with the possible sale of your condo and purchase of a single family home. There is no cost for this evaluation and will save you a lot of time and potentially a lot of money. If you would like to meet personally or discuss on the phone give me a call at 401-742-3216 and let me know.
Regards Dan Liese
RE/MAX Professionals
0 votes Thank Flag Link Wed Oct 20, 2010

If you have enough equity in your townhome to purchase a single family home, I don't see why not. You might lose on the sale, but what you lose, you will probably more than make up for on the purchase of a home with todays prices and rates hovering at 4%!

If you need help finding a dynamite agent in RI to help you, just let me know. An experienced agent in RI can guide you in the right direction. You really need to know your market first.

Good luck,

0 votes Thank Flag Link Tue Oct 19, 2010
Only you can decide what is best for you. There are opportunities out there right now. Factor in what other condos in your area are doing. If things are selling, what are they selling at and will it work for what you plan to do.
0 votes Thank Flag Link Tue Oct 19, 2010
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