Buying A Home
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Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Q's for sellers who took a loss
How much of a loss did you take to sell your house? Or if you haven't sold yet, how much are you willing to lose? What determined for you the loss was worth it?
Re: Q's for sellers who took a loss
With paying our buyers closing costs and paying our realtor we lost 15K CASH. Just about broke even on the loan too so we have no equity to put down on our new house.
My H bought the house 5 years ago for 135K (it was a nice split entry 3 bd, 2 ba) and we sold for 125K. We need to put down 9K down on our new house, which we'll have to do in cash now since no equity. So I see it as we're taking a 24K hit.
We are selling our condo for $28k less than I bought it for 8 years go. We had it listed for $23k less than originally paid and came down even further to keep the buyer. Thankfully, we only have to come to closing with a check to cover the REA fees and some other small closing costs (but not all costs). It hurts BIG time to lose that much money, but it could have been much much worse.
What really hurts is that a year after I bought it, identical condos were going for $20k MORE than I paid and I was so confident that when the time came to sell, I'd be able to walk away with a nice little profit . . . and then slowly the market died and I watched the prices drop drop drop. UGH. The only reason we are getting out now is because we do have enough for a downpayment on a house (even though we aren't going to buy right away) and we outgrew the space and felt it was limiting our future growth (career, family, etc). Better bail now while it is sinking than when it is underwater, right?
I have friends that have lowered the price on their home (full, 3 bed house) to at least $30k under what they paid 8 years ago and their REA says they would probably have to lower it another $40k to get a buyer. They have decided to rent it out instead.
We (DH's new company) came to the table with 30K or about 2.5%
Not including upgrades we did to the house (finished basement 1000 sqft, added in pantry cabinetry to kitchen, added a built-in wine hutch to kitchen, and added an inground pool plus natural stone patio - which of course adds or minuses from house depending on buyer).
In our case, if it had not been for the new company DH went to work for who relocated us from NJ to IA - we would not have sold or taken a loss. I think his company was willing to go up to 60K loss or 5%
We also did not buy during the 'bubble' we bought as the bubble was bursting - so we got a bit of a deal - not sure what we would have done had we bought a year or two earlier when the cost of the house was probably 100K+ more than what we paid for it.
We bought our house for 240k and sold it for 225k, so about a 15k loss. That doesn't even account for the 30k we put into the house.
We had to sell (we moved out of state for DH's job) so the loss was worth it just to get rid of it. It was no fun paying rent and mortgage at the same time.
We bought for $630K in 2003 and are selling at $550K.
Thankfully, we pulled out enough equity to put towards our next home, despite taking a huge hit on the price. We don't have to bring any cash to closing.
Purchased in 2008 for $194K. Currently under contract for $175K.
Purchase price was dead even with our current payoff amount. So technically, we didn't lose anything...but with closing costs (5K to buyers), agent fees, etc, we're bringing $15K to closing. I vomit in my mouth every time I think about it.
That was pretty much our max. We were about to put it up for rent when we got an offer, because we couldn't afford to drop the price further. We did NOT want to rent, because we'd be out of state. That, and the local rental market bottomed out, and we wouldn't be able to get a rent that would be anywhere close to our mortgage. It was either take a loss now or spread it out over the next few years. We just wanted OUT.
With closing closts, lawyer's fees, etc. we are taking a $20,000 loss if our house sells at what it is listed at right now. We cannot afford to go any lower. DH has orders out of state so we are willing to do whatever we can to get out of this house before September. DH was offered a personal loan with a very low interest rate through the military so we are taking that out to pay at closing. Sure, it sucks that we'll have a monthly loan payment but it was worth it to us to be done with it!
I won't be taking a loss on my house, but I would have been willing to if it came to that. I no longer live in the state where the house located and it's not suitable as a rental. The house is also an emotional burden. When it officially sells on 8/22, it will be a huge weight off my shoulders.