Real Estate question

[Drtgirl]

We bought our home 5 years ago and even back then, we knew it was not a "forever home" (detached condo for lack of a better term). The home prices here in WA have fallen dramatically and I'm wondering if this is a good time to sell. We do not have any investments or the like so equity in our house is all we have. If the home prices fall even more we will just break even and not have any $$ for our next one. There are a lot of other reasons for selling too (neighbors, crappy HOA, lack of privacy,etc.).

Has anyone sold their house for the same reason?

[sgtiger]

It's not the best time to be a seller in the PNW. Since the falling home prices are making single family homes more affordable to those who might otherwise have never thought they could afford one, the desirability of condos has fallen. Also, there are at least a couple of condo builders who operate along the West Coast that are going bankrupt. They are severely slashing prices and offering special 1% and 2% financing. I would imagine it would be tough to compete against that if any of their condos are nearby. Although, since it's a detached unit, you might have an advantage over other condos there. Does it have it's own garage? Attached or detached? The other thing to consider is location. Right now many people are moving to be closer to work, shopping, public transit, bike trails, etc. How convenient are any of these to you? Are there any interesting places nearby that you think would make it more desirable?

If you want to move because of the issues you mentioned, it's probably not a bad idea to test the waters. Since you don't have a lot of assets, it's best to wait for your condo to sell before you put an offer on a new place. I meet a lot of people that have purchased a new home to upgrade from their previous home to take advantage of the great real estate deals, but they're stuck paying the carrying cost (mortgage, utilities, taxes)for the former home while it sits on the market.

If you're wanting to sell more for the fear of losing equity, then I think in most markets it's better to wait. There are already signs in some parts of Washington that the market may start to recover soon. Hopefully, for you, the rest of the the state will follow shortly.

Your best bet is to talk to a real estate agent in your area. There is no cost to talk with one. They would be able to pull up a sheet on comparable units that list the selling prices and how long those properties sat on the market before they sold. That would give you a better idea on which way to go right now. Most reputable real estate agents will not take your account unless they think they have a good chance of selling your home. It hurts their numbers and reputation to have a home sit for too long, or to not be able to sell the home by the contracted date.

Just my $.02. I'm not a real estate agent nor do I play one on T.V.

[Cataboo]

What are rental prices in your area? Can you afford to rent it for what your mortgage is?

However, if you want to buy another house - not having the equity from the condo could hurt.

[Tuckervill]

If there is no pressing reason to move (like a job relocation), sit and wait for the prices to go up. Couple of years, maybe.

It doesn't make sense to sell when things are down. So you missed the "up"? It will go up again. You haven't lost any money UNTIL you sell it while it's down.

This is something I don't understand when I listen to the news. The people who are saying, "My mortgage is more than my house is worth. I'm losing money!" Well, you're only losing money if you try to sell it at this time. Just hold on. I take a very conservative view of my house. I pay a mortgage so I can have a roof over my head, not so my house will be a cash cow.

Karen

[tulip]

Is there a reason you need to sell it? If not, just live in it and sell when the conditions are more favorable. You'll just have to find another place to live if you sell it now.

[Biciclista]

I couldn't say it any better than Sgtiger said it. she is absolutely right, on all counts.

Not a good time to sell a condo; but it can't hurt to try.

[Crankin]

Unless you have to move, don't. This is all a cycle. I think what everyone has learned is that your house should be a place of enjoyment that you want to live in and not just a source of cash. Eventually, prices will go up.
When I first moved back to MA I lived in a smaller house, in a town I didn't want to live in. There was nothing inherently wrong with the place, but I spent 6 years just planning to leave. We eventually sold it for about 10K more than we bought it for, leaving very little equity after the real estate commission. Thankfully, we used stock options that we had just received to buy our new house. This was right at the time we were coming out of the last recession, in 1996. Prices were just starting to heat up. When we sold that house 3 years ago, we made a huge profit, which enabled us to move to where we are now.
My house has lost some value, but I am not planning on moving for at least 10 years... I am enjoying it.

[Mr. Bloom]

Crankin +1

If renting becomes an option, the rental should also be able to cover HOA dues, taxes and insurance... But you can depreciate it and i belive you can claim any loss you have after a year as a rental. The HOA makes or kills value for a condo, so I encourage you to take an activists approach to participating and stay put...

I don't know your specific region, but there are signs that the housing market is finding bottom...we just need to absorb the foreclosures in many areas and normalcy will return.