I BOUGHT OCT 2000 (2300 SQFT AT CMR) FOR $400,000.
SOLD IT MAR 06 FOR $655000.
CASHED OUT $220,000 IN THE POCKET. OH YEAH BABY.
MY STUPID AGENT TOLD ME TO WAIT FOR BETTER DEAL. SHE WAS MORE GREEDY THAN US. SHE SAID IT COULD SELL FOR ABOUT $715000. I TOLD HER NO WAY, NONE OF MY NEIGHBORS ARE SELLING AT THAT PRICE RANGE. THEY ARE HOPING, BUT NO ACTION, NO OFFER, JUST SITTING. I AIN’T WAITIN’ NO MORE, BUDDIES. MARKET IS DROPPING AND I AIN’T HOPING, I ACTED.
Chrispy, it depends on when the person bought it. Someone who bought a few years ago, has a mortgage much lower than current rental rates, so they made more money by owning than by renting, every single month. They should subtract their mortgage savings vs. rent, from their final cost. If they bought after mortgages exceeded rental costs, then the additional mortgage payment could be considered a holding cost too.
Thanks, PS. That’s the clarification I need. I get annoyed when people merely subtract the price they originally paid from the new sales price to figure out their profit – without figuring in expenses.
I feel there will be quite a few negative figures in the near future. As a seller, can you imagine bringing a checkbook to closing?
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