To sell now or wait until the Spring? (San Diego, Escondido: sales, real estate)

[b0rb0leta]

We have a Condo in South Escondido, right next to the I5 entrance, near Jimbos, Major Market and Trader Joe's. It's a 2bed/2bath no garage. Should we put it on the market now (Winter) or wait until the spring when houses usually sell better? Would we loose money or gain equity if we wait? Do Condos tend to sell faster or slower then houses? It was a rental and it is currently empty. We also have a 30 year fixed FHA assumable mortgage at 3.75% with no PMI, with 25 Years left. Should we offer that as an incentive or is that to complicate because the buyer would either have to pay cash or have to find a second mortgage to pay the difference between the price of the Condo and what is left on the Mortgage? Should we not mention the FHA loan at all?

[cruitr]

I didn't realize FHA loans are assumable. However, it looks like they are. The negative is this... if the buyer quits making payments on the assumed FHA loan, you (the seller) may still be responsible for that loan. In other words, you and the buyer may both be facing foreclosure and your credit score will take a big hit.

Are you trying to sell your house on your own without a Realtor? Based on the questions you are asking, you really should use a Realtor.

[b0rb0leta]

FHA loans work different from other assumable loans.
"Once the new buyer is approved to assume your FHA loan, your lender must release you from liability on the mortgage. The lender completes form HUD-92210, which is a Request for Credit Approval of Substitute Mortgagor. The lender must also complete form HUD-92210.1, Approval of Purchaser and Release of Seller, which gets you formally released from all liability. These forms protect you in case your buyer defaults on your old loan. The lender is required by law to release you from liability once your buyer is deemed to be creditworthy".

We contacted a few realtors and everybody had a different opinion.

[RosieSD]

I don't know if this is still true this year, but last winter, when my daughter and son-in-law were shopping for a starter home in San Diego County, there were plenty of entry-level buyers looking. Homes were getting multiple offers and selling in days.

So, don't assume that the winter is a poor time to sell in San Diego.

Cruitr is right: what you need is a good real estate agent to answer your specific questions and tell you what the market looks like now in Escondido. If you haven't found one yet, keep looking!

[TacoSoup]

You’ll always get different opinions from realtors, especially from ones you don’t know and/or want your business. Traditionally spring and early summer is the best time to sell as families are typically wanting to close escrow before the start of the school year. Obviously not all properties are the same, nor is every market.

Just like RosieSD’s daughter, I too was shopping for a house last fall and winter and all the old rules didn’t apply. I have my mom and aunt, along with a couple of good friends that have well over 100 years experience selling real estate in this state and I kept asking when is this “buyers” time of the year gonna happen that you all speak of.

With that said, and as crazy as it may sound, put your house on the market right after the Super Bowl if you don’t want to wait until spring. Weekends are gonna be taken up with family obligations and shopping now through the New Years, not to mention people not wanting the stress of buying a house now. Once the holidays and the NFL season are over weekends are free for a lot more people to go out looking and hopefully get you more offers on your place.

I’m not too familiar with Escondido but I think I might know your complex. I was helping my wife’s friend who works in RB find a condo up there on behalf of my mom. One of the places I showed her was next to the shopping with only carports. She put off buying, but I thought it was great having so much, including the Brigatine in waking distance. I’m guessing with the lower price point and location of your condo to so much, not to mention easy access to the freeway it should have a lot of interest. Good luck.

[Axxlrod]

Traditionally, I'd say wait until spring, as fewer homes sell going into the holidays.

However, rates will keep rising, and the market is starting to soften.

You might have an easier time finding a buyer next spring/summer, but it will most likely be for a lower sales price than now.

But my crystal ball is somewhat foggy.

[cruitr]

Originally Posted by b0rb0leta

FHA loans work different from other assumable loans.
"Once the new buyer is approved to assume your FHA loan, your lender must release you from liability on the mortgage. The lender completes form HUD-92210, which is a Request for Credit Approval of Substitute Mortgagor. The lender must also complete form HUD-92210.1, Approval of Purchaser and Release of Seller, which gets you formally released from all liability. These forms protect you in case your buyer defaults on your old loan. The lender is required by law to release you from liability once your buyer is deemed to be creditworthy".

We contacted a few realtors and everybody had a different opinion.

Have you spoken to your lender about your mortgage assumption? I can't find a law that says the lender must release the seller of all liability.

Another good person to ask is an escrow company. If you don't know any escrow companies, I have worked with both Heritage Escrow and Elite Escrow. Both are good companies.

You'll need an escrow company to close your sale if you use a Realtor or sell it by yourself.

As for timing, March and April are usually the best months to list a home. With interest rates rising, you may want to get it on the market as soon as possible.

[metoque]

Originally Posted by Axxlrod

Traditionally, I'd say wait until spring, as fewer homes sell going into the holidays.

However, rates will keep rising, and the market is starting to soften.

You might have an easier time finding a buyer next spring/summer, but it will most likely be for a lower sales price than now.

But my crystal ball is somewhat foggy.

+1 Housing is getting hit. Every day you wait, the lower your price will need to be to sell.

[lostsoul359]

Originally Posted by b0rb0leta

We have a Condo in South Escondido, right next to the I5 entrance, near Jimbos, Major Market and Trader Joe's. It's a 2bed/2bath no garage. Should we put it on the market now (Winter) or wait until the spring when houses usually sell better? Would we loose money or gain equity if we wait? Do Condos tend to sell faster or slower then houses? It was a rental and it is currently empty. We also have a 30 year fixed FHA assumable mortgage at 3.75% with no PMI, with 25 Years left. Should we offer that as an incentive or is that to complicate because the buyer would either have to pay cash or have to find a second mortgage to pay the difference between the price of the Condo and what is left on the Mortgage? Should we not mention the FHA loan at all?

What does the competition look like? Look at the comps around you.
I would list it now, price it to sell and hope for overbidding. Make sure you market it as an assumable FHA loan for sure. And stage the property so that potential buyers can vision living there.

[sfosyd]

I would wait until at least after the holidays. The main reason the housing market is slowing is because interest rates are rising and it’s looking probable that they will continue higher, which will make your assumable mortgage stand out even more in the spring.