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Old 05-27-2010, 02:38 PM
 
2,437 posts, read 7,129,097 times
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Quote:
Originally Posted by CosmicWizard View Post
I started out the same way ( house = EXPENSE ). By the time I sold it 15 years later, it had tripled in value and it changed my thinking to ( house = equity )... I hadn't considered the other side of the coin...a bigger, more costly house = more DEPRECIATION and less equity. But you're right, the depreciation is just numbers on paper, as long as I'm living in the house. In reality, I am tremendously blessed to live in such a nice house with an easily affordable mortgage, but it's hard not to play the..... what-if-I'd-have-seen-the-crash-coming-and-I would-have-waited-to-buy mind game.
Don't get me wrong, I won't be UPSET if my current home yields some equity if and when I ever choose to sell it. After all, that's the only way I'll ever get that 50k back in cash. I'm just not expecting it to make money, so it won't bother me if it doesn't. Besides, as you pointed out, there are benefits to having a smaller, cheaper home. Another one of those benefits is that a less valuable home = less tax.

To the OP, and anyone like him I guess I'd say, sell it if you want and don't worry about the cash you could have made or at least not lost. Of course, if that devaluation would leave you owing a balance on a home you don't own, that's a different story, and I don't think anyone (including me) would advise CHOOSING to sell under those circumstances.
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Old 05-27-2010, 02:46 PM
 
Location: Sunnyvale, CA
4,932 posts, read 8,951,822 times
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Quote:
Originally Posted by CosmicWizard View Post
treedonkey.....OUCH!

There always seems to be some kind of trade-off involved. Unless you're a bankster you can't have your cake and eat it too. Hopefully we will teach those banksters that too much sugar ain't good for long term health.
It's good for their health.
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Old 05-27-2010, 02:55 PM
 
Location: Denver, CO
1,450 posts, read 3,893,527 times
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We have a good number of houses near us that sold for a good amount in a short amount of time. One house a couple houses down from me was under contract within the week it was put up last month. The recession didn't seem to have put a dent here.
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Old 05-27-2010, 04:05 PM
 
Location: N. Colorado
345 posts, read 761,951 times
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I am a she lol so I always run the numbers before I do anything.
I am not interested in getting everything I think it is worth or have put into it back. We built it on this property and once finished we already had over 80k in equity, when it appraised 5 years later it was more. I do not think of it as money in the bank.

If I were to be able to sell it, and say I received 30k back I would be fine with that. I would not consider the other other 60k or more as a loss.
I just do not want to sit here waiting and waiting wondering where I am going or when. I cannot put a house under contract elsewhere or move until I knew what was happening for sure here.

When we sold our house in Thornton 8 yrs ago, we had a contract, their credit was bad so they could not get the home, even though their realtor promised otherwise. Then we had another guy under contract and 2 weeks before close he lost his job. Finally we had 8 offers in one week and the guy who had his job the longest, the better credit score and etc won, 5 years later the bank repo'ed the house oh well. It was an awful time with 2 mortgages since the house sale of the first one dragged on so long and I do not want to go through that again.

Move soon and get a house I like, in an area I want to be in, be able to see my brand new nephew, go to my cousin's wedding and etc etc. Or stay here a bit longer ( a year or more?) and hope it sells. This is how I am going round and round, lol. Where I stop know nobody knows
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Old 05-27-2010, 04:56 PM
 
2,437 posts, read 7,129,097 times
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Quote:
Originally Posted by gmm_24 View Post
Move soon and get a house I like, in an area I want to be in, be able to see my brand new nephew, go to my cousin's wedding and etc etc. Or stay here a bit longer ( a year or more?) and hope it sells. This is how I am going round and round, lol. Where I stop know nobody knows
How much will your house sell for in one year or more?
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Old 05-29-2010, 06:09 PM
 
Location: western Colorado, hoping to move to PA
51 posts, read 134,498 times
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This topic is on my mind too, as we bought a house in Grand Junction in May of 2008, a few months before the bubble burst. We paid $208K for a house that needed a ton more work than we realized (and was on the market for $220K, but really was the best deal we could find at a time when home values were sickeningly inflated). We then sunk thousands of dollars into the unglamorous side of improving the home before we decided to ditch this area due to a multitude of reasons we couldn't have foreseen in 2008 and take the loss in order to move out east. I believe houses in this area are selling for around $190K in significantly better shape than ours is in, though we do have some perks like a larger lot, backing up to open land, and those unglamorous improvements. I have no clue what to list our home for now, or whether we should sink more money into the much-neglected aesthetic side of the home because I can't be sure we'd get that money back or make a quicker sale. It's ugly now and we are probably looking at losing at least $30K overall, which sucks since this is our first home and we had scrimped and saved in a cruddy apartment for nearly three years in order to be able to buy this place.

I hope buying this house was the biggest mistake we ever make, because it was certainly a big one.
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Old 06-01-2010, 09:50 AM
 
Location: Wherabouts Unknown!
7,756 posts, read 16,501,052 times
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Umberlee...I don't know where you're heading back east, but things ain't much better back there. I spent a week in Berks County, PA ( 50 miles NW of Philly ) back in April and I can assure you that the economy there was NO better than it is here. Just last night a friend of mine who lives in Berks County - PA spent the night at our house in GJ on his way back to PA. He says real estate is in the pits, prices have fallen, and jobs are hard to come by. In addition to losing $30,000 by leaving GJ you may be jumping from the GJ frying pan into another frying pan. Is it really your best move?
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Old 06-01-2010, 11:51 AM
 
2,437 posts, read 7,129,097 times
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Quote:
Originally Posted by CosmicWizard View Post
In addition to losing $30,000 by leaving GJ you may be jumping from the GJ frying pan into another frying pan. Is it really your best move?
Very insightful. Gone are the days where we can expect to make any money off our homes, at least for now. Until that changes, which could be this year or in 20 years, it seems like we should only be moving because we need to or want to so badly that the deficit is worth it.
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Old 06-01-2010, 01:21 PM
 
Location: N. Colorado
345 posts, read 761,951 times
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My companies are Nationwide and can transfer me if I ask far enough in advance. So that part does not worry me as much.

If I wait a year or 4 years till my child is out of H.S. to move will the housing market be better or worse? That is the 64k question

Moving to a house with more land, for a smaller per month mortgage closer to family and friends is what I really want to do. If I break even, ok kind of disappointing to not have a good sized down payment on the new place. But how long on the dang market will it sit and sit? People can be picky since there are so many houses for sale, it is truly a buyers market.

Umber I feel for you. It is an awful position to be in. I hope it works out for you.
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Old 06-01-2010, 10:51 PM
 
Location: western Colorado, hoping to move to PA
51 posts, read 134,498 times
Reputation: 58
Quote:
Originally Posted by CosmicWizard View Post
Umberlee...I don't know where you're heading back east, but things ain't much better back there. I spent a week in Berks County, PA ( 50 miles NW of Philly ) back in April and I can assure you that the economy there was NO better than it is here. Just last night a friend of mine who lives in Berks County - PA spent the night at our house in GJ on his way back to PA. He says real estate is in the pits, prices have fallen, and jobs are hard to come by. In addition to losing $30,000 by leaving GJ you may be jumping from the GJ frying pan into another frying pan. Is it really your best move?
Well, we won't go unless DH is able to transfer which would guarantee him a job there, and prospects are much better in his field in Pitt than they are here in GJ (he's a scientist currently working in mining safety/gas chromatography). I'm a nurse so I'll be fine wherever we go. And in looking at the prices of real estate out there, we could get a house even bigger than the one we're in now for much cheaper thanks to those bottomed-out prices. So it might even make it worth it to take the loss...we'd be in a bigger house, in an area that better suits our needs, with a lower interest rate and less on the bottom line to pay off even considering we wouldn't have as big of a down payment as we had for this house. But there are a lot more variables than just those rosy ones in considering a move thousands of miles away...and having to scrap everything we started to build up here would really, seriously suck. But sticking around hoping prices raise to an "at least you won't lose your shirt" level could take decades, as a previous poster said--and in the meantime, the future for Pittsburgh seems to be looking pretty bright so we may not have the luxury of choosing from five thousand different properties in a few years.
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