Wondering if I should sell now?

[blahblahblah]

A more appropriate question than “should I sell?” is “CAN I sell”? There are not a lot of people these days who are able to pay $900K for a house in North Park, no matter how nice it is. Loans are much harder to come by than when you bought in 2005, so you’ll need a buyer with a lot of cash. Buyers with lots of cash are usually wealthy, and of course wealthy people usually become wealthy by being careful with their money. Paying $900K for a house in one of the US markets most at risk for further price declines is pretty risky. My guess is that few wealthy people would want to do it, especially considering what else they could do with their cash and still afford to rent a similar place for less money. You might get lucky and find a buyer that has just inherited some money, won the lottery, or closed a big drug deal, but such people are pretty rare. If you can afford the house, I would say hunker down, enjoy it, and stay in for the long haul. That is a nice neighborhood and it sounds like a nice house too!

[Ren]

Of course it won’t sell if he prices it higher than what he bought it for at the peak. He may not get 7 or even 6 for it. He needs to check the comps and price it 5% lower at the start.

[Ren]

Of course it won’t sell if he prices it higher than what he bought it for at the peak. He may not get 7 or even 6 for it. He needs to check the comps and price it 5% lower at the start.

[Ren]

Of course it won’t sell if he prices it higher than what he bought it for at the peak. He may not get 7 or even 6 for it. He needs to check the comps and price it 5% lower at the start.

[Ren]

Of course it won’t sell if he prices it higher than what he bought it for at the peak. He may not get 7 or even 6 for it. He needs to check the comps and price it 5% lower at the start.

[Ren]

Of course it won’t sell if he prices it higher than what he bought it for at the peak. He may not get 7 or even 6 for it. He needs to check the comps and price it 5% lower at the start.

[ironman]

sdgldnbear ,

If today’s market price is say low 600K , can you afford to sell? And if you could, would you pay the difference from your pocket ? (by saying goodbye to your downpayment , if you had any, or coming up with the difference at closing)

Ironman

[ironman]

sdgldnbear ,

If today’s market price is say low 600K , can you afford to sell? And if you could, would you pay the difference from your pocket ? (by saying goodbye to your downpayment , if you had any, or coming up with the difference at closing)

Ironman

[ironman]

sdgldnbear ,

If today’s market price is say low 600K , can you afford to sell? And if you could, would you pay the difference from your pocket ? (by saying goodbye to your downpayment , if you had any, or coming up with the difference at closing)

Ironman

[ironman]

sdgldnbear ,

If today’s market price is say low 600K , can you afford to sell? And if you could, would you pay the difference from your pocket ? (by saying goodbye to your downpayment , if you had any, or coming up with the difference at closing)

Ironman

[ironman]

sdgldnbear ,

If today’s market price is say low 600K , can you afford to sell? And if you could, would you pay the difference from your pocket ? (by saying goodbye to your downpayment , if you had any, or coming up with the difference at closing)

Ironman

[(former)FormerSanDiegan]

Without knowing the balance of your loan here’s how I look at it :

Suppose you bought with 10% down.
In that case you would owe somewhere around 760-770K.

Suppose you could sell now for 650K, minus selling costs/commission yields 605K.
So, you come up with 160K out of pocket to sell.

Is that the best use of 160K ?

By spending that 160K now, you may potentially save another 100-150K. OR you could use that 160K to make other investments, or as an emergency cushion to carry you through any unforeseen circumstances.

You have to weigh the opportunity cost of the money you would spend to sell your house against the protection from further downside you are buying.
(And by the way, assuming you did not refinance, you already have protection under the state of CA recourse laws.)

[(former)FormerSanDiegan]

Without knowing the balance of your loan here’s how I look at it :

Suppose you bought with 10% down.
In that case you would owe somewhere around 760-770K.

Suppose you could sell now for 650K, minus selling costs/commission yields 605K.
So, you come up with 160K out of pocket to sell.

Is that the best use of 160K ?

By spending that 160K now, you may potentially save another 100-150K. OR you could use that 160K to make other investments, or as an emergency cushion to carry you through any unforeseen circumstances.

You have to weigh the opportunity cost of the money you would spend to sell your house against the protection from further downside you are buying.
(And by the way, assuming you did not refinance, you already have protection under the state of CA recourse laws.)

[(former)FormerSanDiegan]

Without knowing the balance of your loan here’s how I look at it :

Suppose you bought with 10% down.
In that case you would owe somewhere around 760-770K.

Suppose you could sell now for 650K, minus selling costs/commission yields 605K.
So, you come up with 160K out of pocket to sell.

Is that the best use of 160K ?

By spending that 160K now, you may potentially save another 100-150K. OR you could use that 160K to make other investments, or as an emergency cushion to carry you through any unforeseen circumstances.

You have to weigh the opportunity cost of the money you would spend to sell your house against the protection from further downside you are buying.
(And by the way, assuming you did not refinance, you already have protection under the state of CA recourse laws.)

[(former)FormerSanDiegan]

Without knowing the balance of your loan here’s how I look at it :

Suppose you bought with 10% down.
In that case you would owe somewhere around 760-770K.

Suppose you could sell now for 650K, minus selling costs/commission yields 605K.
So, you come up with 160K out of pocket to sell.

Is that the best use of 160K ?

By spending that 160K now, you may potentially save another 100-150K. OR you could use that 160K to make other investments, or as an emergency cushion to carry you through any unforeseen circumstances.

You have to weigh the opportunity cost of the money you would spend to sell your house against the protection from further downside you are buying.
(And by the way, assuming you did not refinance, you already have protection under the state of CA recourse laws.)

[Author]

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