Sale My House Now or Wait, Hypothetical Help Please
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If you home value goes UP in the next five years, you may not HAVE to take a loss.
Yes, but what he is saying is that while the value of the home he is SELLING may go up.....so will the value of the home he is buying so the loss may be a wash with the increased cost on the purchase.
So, does he go ahead and take the loss now and purchase.....or possibly wait to see if home prices rise which could help him on the sale but will probably cost him MORE on the purchase?
Honestly OP, that is only something you can decide but I see what points you are considering.
Yes, but what he is saying is that while the value of the home he is SELLING may go up.....so will the value of the home he is buying so the loss may be a wash with the increased cost on the purchase.
Not if he "buys low, sells high."
Shop around, downsize, move to a new area, whatever it takes.
It's not as if this decision has NOTHING to do with home values.
Ok....but in this case, like he has stated, the property is comparable to what he is selling and in the same general area. Logic would tell you that if the property he is selling rises in value due to a more active real estate market, the comparable property he is buying will have more than likely risen as well. That's what happens when you bank on the market to determine value. He's either going to make more on the house he sells or pay more for the house he buys. That is his dilemma....we deal with it all the time.
This is not a case of "buy low sell high" more than likely.
That's all well and good to downsize, move to another area that might not be as costly, etc....but unfortunately that is not this buyer's stated motivation so that is irrelevant.
Ok....but in this case, like he has stated, the property is comparable to what he is selling and in the same general area. Logic would tell you that if the property he is selling rises in value due to a more active real estate market, the comparable property he is buying will have risen as well. He's either going to make more on the house he sells or pay more for the house he buys. That is his dilemma....we deal with it all the time.
This is not a case of "buy low sell high" more than likely.
That's all well and good to downsize, move to another area that might not be as costly, etc....but unfortunately that is not this buyer's stated motivation so that is irrelevant.
Then he needs to reevaluate his motivation.
It's as if his foregone conclusion is to take a loss, when he may not have to.
Its clear you have not grasped what the OP is trying to rationalize.
So you are stating that what you think should be his motivating decisions is what should determine his outcome? Ok.
Consumers in the market struggle with this very decision daily. It is not up to YOU or I to dictate his motivations for him. Only he can determine that. Its his house. Its his money. Its his life. Not yours.
So you are stating that what you think should be his motivating decisions is what should determine his outcome? Ok.
Consumers in the market struggle with this very decision daily. It is not up to YOU or I to dictate his motivations for him. Only he can determine that. Its his house. Its his money. Its his life. Not yours.
Duh. That's the construct of every post here on CD.
He came here and asked advice, though, and I replied.
My laptop, my advice. Not yours.
Also, your second sentence makes NO sense, by the way.
Actually, it does. You have stated he should "reevaluate" his motivations and eluded that he should downgrade or move to another area. That is not what he wants to do and he's stated such. So why even bring it up? Its IRRELEVANT.
Seriously, let me build you a brick wall so you can argue with it.
You are banking everything on the market going up and that may not happen. Sure, he could end up in the hole on whatever property he owns at that point in time, but like he said in his own words, at least he would be in the property he wants to be in rather than being even further in the hole on the one he currently owns.
I wanted to pose this scenario with regard to wanting to sell my house and move a fews miles away. I'm not analyzing whether I want to move, that has been decided. I'm trying to analyze timing only.
I'm several thousand dollars in the hole on my current house. Quick facts, Paid $219,000 8 years ago, still owe about 198K due to high interest rates, However, I'm refinanced now. House will probably only sell for @ 200,000. In other words, I'm going to have to come up with $15-30,000 if I want to move. I'm not trying to spend more. The house I would buy would probably be around $200,000-$210,000. I have excellent credit and debt ratio not a problem. I could probably buy another house and rent the current one, but I don't really want to.
This is my question: I have told myself that I'm going to have to take this loss on my house, i.e., come up with $15,000-30,000 to move and it's either I do it now, or do it five years from now. THE SITUATION IS NOT GOING TO CHANGE AS FAR AS THE MONEY I HAVE TO COME UP WITH.! I can either put out the money now, or do it later. And I'm also telling myself I might as well go ahead and do it, while interest rates are low and I'm able to do it.....good health, job, etc.. Also, if home values rebound, they would rebound in the new house as well, so no need to worry about one versus the other. (Both houses are in good neighborhoods)
Has anyone else struggled with this? There just doesn't seem to be a reason to wait, if I'm determined to move. Five years from now I could be jobless and up a creek for some other reason, but at least living where I want to live.
We are in a situation similar to yours. We moved out of state for my husband's job, and because it was not the right time to put the house on the market (late summer in New England), we took it off the market after no traffic on it, and did a 6 month lease to a renter. We put the house on the market a couple weeks ago and had a buyer in a little over a week.
We are going to the table with 10K to buy out of the balance of the deal. For us, it is worth it, because we do not want to be landlords, especially from across the country. And, the sooner we can do this deal, the sooner we can move forward and put it behind us. Do I like using 10K for this? Heck no, but in the end of this we will not have to think about this house anymore.
I will share that since we moved, I am constantly hoping that nothing happens to the house, and the renters do not have any issues. During Thanksgiving, there was bad weather in New England, and there was no power for 5 days. So, I am sitting in sunny Southern CA worrying that the house is going to end up with frozen pipes. Yes, our tenant was in the house, but I still worried about it.
It is a matter of weighing all these feelings. Will you ultimately feel relief not having to think about the house anymore, or will losing the money be worse for you? If you are going to lose money either way, may be time to cut your losses.
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