Get out now or stick it out

[LostCat]

So I have a friend that bought a place last year for about $50k below the so called market value. Right now he said that the houses are selling around the same price he bought for. He was wondering if he should stick it out (how long will it be) or jump out of the market and rent.

Will he likely lose more money if he stays in or sells it and takes a hit.

Allied Gardens is the hood he lives in. HE paid $495k for a 3/2 home. Approx 1,700sqft

[JWM in SD]

A year ago? He’s already lost $.

[JWM in SD]

A year ago? He’s already lost $.

[JWM in SD]

A year ago? He’s already lost $.

[patientlywaiting]

That house will be worth $250k when all is said and done.

[patientlywaiting]

That house will be worth $250k when all is said and done.

[patientlywaiting]

That house will be worth $250k when all is said and done.

[(former)FormerSanDiegan]

The 10% loss is pretty consistent with the Case-Shiller index from a few months ago. My guess is that by the time he gets it sold, he’d be looking at another 25K or more lopped off what he thinks the price is currently.

[(former)FormerSanDiegan]

The 10% loss is pretty consistent with the Case-Shiller index from a few months ago. My guess is that by the time he gets it sold, he’d be looking at another 25K or more lopped off what he thinks the price is currently.

[(former)FormerSanDiegan]

The 10% loss is pretty consistent with the Case-Shiller index from a few months ago. My guess is that by the time he gets it sold, he’d be looking at another 25K or more lopped off what he thinks the price is currently.

[djrobsd]

Yeah, and don’t forget to include the following deductions from the final sales price:

6% realtor commission
1% closing costs/repairs/etc

Those could be much higher when all is said and done depending on the condition of his place. It’s not uncommon right now to see buyers asking for 1-2 points for closing costs, and other stuff…. Yippeeeeeeeeeeeeeeeey!

Oh, and if he doesn’t want to pay 6%, I know where he can go to pay 4% instead, but I’ll let that person speak for himself if he wants to! LOL

[djrobsd]

Yeah, and don’t forget to include the following deductions from the final sales price:

6% realtor commission
1% closing costs/repairs/etc

Those could be much higher when all is said and done depending on the condition of his place. It’s not uncommon right now to see buyers asking for 1-2 points for closing costs, and other stuff…. Yippeeeeeeeeeeeeeeeey!

Oh, and if he doesn’t want to pay 6%, I know where he can go to pay 4% instead, but I’ll let that person speak for himself if he wants to! LOL

[djrobsd]

Yeah, and don’t forget to include the following deductions from the final sales price:

6% realtor commission
1% closing costs/repairs/etc

Those could be much higher when all is said and done depending on the condition of his place. It’s not uncommon right now to see buyers asking for 1-2 points for closing costs, and other stuff…. Yippeeeeeeeeeeeeeeeey!

Oh, and if he doesn’t want to pay 6%, I know where he can go to pay 4% instead, but I’ll let that person speak for himself if he wants to! LOL

[unbiasedobserver]

I have a good friend in San Diego who has been a mortgage broker for 20 years and is an eternal housing optimist up until August. He told me a few weeks ago that the average person who comes into his office now overestimates their equity by at least 100K and that’s before the realtor commission. Believe me this guy is probably being conservative, the average San Delusional homeowner has a lot less equity than they care to believe at this point.

[unbiasedobserver]

I have a good friend in San Diego who has been a mortgage broker for 20 years and is an eternal housing optimist up until August. He told me a few weeks ago that the average person who comes into his office now overestimates their equity by at least 100K and that’s before the realtor commission. Believe me this guy is probably being conservative, the average San Delusional homeowner has a lot less equity than they care to believe at this point.

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