I went on the market in June as condos. I priced too high and missed what was probably the peak of the condo market. By August the units I had comp-ed against had dropped from the high 400’s to the low 400’s (and were still on the market). The same units were ultimately reduced to the high 300’s.
I had the condos priced in the low 400’s for two months or so with some activity. Got one of them into escrow but the buyer flaked when he saw my disclosures (I assume he wanted to have the option of sueing me and my disclosures eliminated all the reasons he might have used in court).
After the condos I was comp-ing against dropped below 400K I pulled my condo listings and went on the MLS as multi-units.
I’m priced at a reasonable price based on the current market and don’t intend to give the property away. My next step will be to pull the listing and rent the units.
There are so many aspects to the “keep it or sell it question”. The property is currently my residence which adds another wrinkle.
One aspect that I consider is what the property will be worth after the market corrects. I’m expecting a 50-60% correction which will drop my property back to what I have in it. From that perspective all I’ve lost is paper equity and I’ve kept a low tax payment and had a nice place to live.
Another consideration is the cost of selling. By the time I sell and pay taxes I’m “giving up” about $250K of this paper equity to RE agents and IRS. (yes, I’m aware of several ways to avoid paying capital gains so save your keystrokes inre that subject)
