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Linus..Sorry but I dont agree with that reasoning at all. I absolutely did not overpay for that house. But any mortgage payment depends on the amount of financing you do and the rate that you get. I may have a really low mortgage payment or a really high one on the same price house. Thats not a true indication of value of the purchase.
Anyway, the issue is still that, despite a good price, it still is not selling. I am not sure if I will do the rental route yet, as I dont have any experience with it. But I may have to as a last resort. Thanks again.
At this point I'm interested in this percentage ratio as well.
From an investment standpoint, and if net equals zero (pending all other financial considerations) then I would consider any alternative that allows a zero balance. Incentives to buyers, home warranties, anything 'free' that comes from profit that can be included on the HUD may be what you need to get the ball rolling. If you can stomach coming out equal I'd get a recent CMA asap, look at what the market is saying about the last 30 days and get aggressive.
This is costing you money, and you could be saving it or spending it elsewhere.
Give gifts to receive blessings.
If you do go the rental route, I'd find a property management company to help screen candidates, pay them their percentage and carefully review the contract to see what their duties to you will entail.
Well, the really good question is what is the value. There have been many comps done by the realtors in the neighborhood. When I look at the houses that sold for less than mine, I can see that they had much less, for example, no pool, and a 2 car garage and 2 bathrooms, where mine has a pool, 3-car garage, and 3 bathrooms. I am not holding out to make money but I dont want to give it away either. Plus I cannot go below my mortgage balance. When you add in the 4-6 percent commission (14,000 - 21,000) and the closing costs (6,000 - 7,000) it doesnt leave a whole lot of room. The newer house of my 2 has only a little bit of equity to play with as I have only owned it 1.5 yrs.
So...to determine value? As I said, houses that sold for 20,000 less have a lot less. I think I was priced correctly but who knows.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Quote:
Originally Posted by LinusK
If it's cheaper to rent than to own, that means something's out of whack.
Think of it like a car. Suppose it costs $30/day to rent a car, or $900/month. If it cost more than that to finance the purchase of the same car, (more than $900/month) then you know something's wrong with the car market.
The same thing is true of a house. If it costs more to finance a house than you can get for renting it, then you paid too much.
Also please take into account the homestead exemption in the state of Florida. If you are not using the home as your residence you get screwed big by the income taxes!!!! which can cause your mortgage to jump at around November each year.
Well, the really good question is what is the value. There have been many comps done by the realtors in the neighborhood. When I look at the houses that sold for less than mine, I can see that they had much less, for example, no pool, and a 2 car garage and 2 bathrooms, where mine has a pool, 3-car garage, and 3 bathrooms. I am not holding out to make money but I dont want to give it away either. Plus I cannot go below my mortgage balance. When you add in the 4-6 percent commission (14,000 - 21,000) and the closing costs (6,000 - 7,000) it doesnt leave a whole lot of room. The newer house of my 2 has only a little bit of equity to play with as I have only owned it 1.5 yrs.
So...to determine value? As I said, houses that sold for 20,000 less have a lot less. I think I was priced correctly but who knows.
There is no rule that a homeowner "will make a profit" or "break even" unfortunately. You might have to face facts and suck it up that you bought at the peak and are going to probably have to take a major hit (loss). The market in your area is going from bad to worse. Comps don't mean much when you have sellers trying to "catch a falling knife" like the market is right now. Get aggressive now or wait and let the market get even worse....
There is no rule that a homeowner "will make a profit" or "break even" unfortunately. You might have to face facts and suck it up that you bought at the peak and are going to probably have to take a major hit (loss). The market in your area is going from bad to worse. Comps don't mean much when you have sellers trying to "catch a falling knife" like the market is right now. Get aggressive now or wait and let the market get even worse....
Your choice...
Do you absolutely have to sell?
I never said there was a rule that you have to make a profit or break even. I have faced facts already, and no I didnt buy at the peak but slightly before it. I dont mind taking a loss, its just that I CAN'T unless I short sell, and I am trying to avoid that hit on my credit. I didnt buy the house for an investment, I bought it to move into. The fact is, I have never lived through a market like this, with a frenzy and then stone cold; I have bought and sold houses always where the market was 'normal' or level. I would like to sell now at any price, but I dont have enough cash to cover a short sell, and the only other way to "get aggressive" is to lower the price enough but I can only do that if I dont have to pay $21,000 - 28,000 commission to a realtor. But I guess then without a realtor, my chances of selling it really drop. Its a real trap.
I never said there was a rule that you have to make a profit or break even. I have faced facts already, and no I didnt buy at the peak but slightly before it. I dont mind taking a loss, its just that I CAN'T unless I short sell, and I am trying to avoid that hit on my credit. I didnt buy the house for an investment, I bought it to move into. The fact is, I have never lived through a market like this, with a frenzy and then stone cold; I have bought and sold houses always where the market was 'normal' or level. I would like to sell now at any price, but I dont have enough cash to cover a short sell, and the only other way to "get aggressive" is to lower the price enough but I can only do that if I dont have to pay $21,000 - 28,000 commission to a realtor. But I guess then without a realtor, my chances of selling it really drop. Its a real trap.
Do you absolutely have to sell? You've only been in the place a couple of years it seems.
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