Today I had a new client meeting on whether to rent or sell her new 2/1/2 condo. What would you do? Bought property in 2008 for $600,000. Today’s market condo is worth $525,000 to $550,000. Knowing this is a Buyer’s market price is VERY important. Showing immediate value to potential buyers creates activity and possibly multiple offers. There are 24 active listings that compete with her property. Average sale per month is 2. There is 10-12 months of inventory on the market. So once again price is important if she wants to sell fast. However, her loss will be more if sold at the low price.
Original down payment was $120,000. She wants to recoup her initial down payment so she is thinking of renting. Rents for this type unit furnished is $2300- $2500. Her loss per month renting is $1465 per month. times that by 12 then 5 years if the market comes back then. She wants to sell the place later on for $640,000 to recoup her $120,000 down payment and cover her closing & real estate fees. Her loss both ways end up the same. Do you keep on hanging in take your loss, realize you made a financial mistake in buying this property and move on or do you sell get out from under it, no more headache and heaviness in your lifeand get the cash now to begin to save for your future now verses later?
Love to have your answer. Of course I always recommend talking to your CPA or Financial Advisor for tax consequences. In this case, she does not have either. I recommended she gets one.
