Hi folks, These are desperate times we are in. Some folks can do everything right and still find themselves in a bind. All we can do is give honest advice and let them make the decisions they need to make.
I am scared about refinancing now that the market is even worse. I wonder if I should hold on to the money I was putting down on the house?
Things have changed and my parents are now talking about moving out of Florida.
If I listed this house for $129,000 fully furnished with all the new appliances, new furniture and shed do you think I could sell it? Buyer pays closing costs?
That would give me back the house money, the money for the fence and pay the furniture and appliance bills. Do you think it would come close? With the landscaping (which you haven’t seen) and fence and all?
You’re listing homes for $90k and that makes me so scared. If I don’t have a job next year I am in trouble. I also want to get out of this area. I would have all year to try to sell it, not a rushed deal. However, I feel like if I don’t try to sell it now it will be worth $69k in 6 months.
Right now cash is king. If I had the money from the sale of your other home I’d place it in a savings account for the time being. Property values in Poinciana are certainly still declining and much more rapidly that I could have imagined 3 months ago. Most of this decline is due to banks reducing the price of their REOS (foreclosures) to get them off the books by the end of the year. This has caused values to drop an incredible 18% in the 34759 zip code since September.
Homes similar to yours are selling for $48 per sq ft right now. If we just used this figure it would make your property worth 2094 X 48=$100,500. There are currently 15 similar homes on the market priced at $100,000 or less. You paid $120,000 in September which at the time was the best priced home of this style on the market. To sell now will cost you money as it may take as low as $100,000 to get it done. Which is right in line with an 18% decline in property values.
You may be able to refinance at a lower rate that would make it feasible to rent out but I would NOT put any of my cash into the house unless you are certain you will be keeping the house for the next 5 years or more. If, as you fear, you are going to have to move because of your job situation you are better off using your cash to get settled elsewhere.
We can certainly try to sell. Even if you had to bring some money to closing you may be better off trying to sell now than having to sell 6 months from now. Bringing $15,000 to $20,000 to closing is much better than putting $40,000 into the property to lower your payment. Or…..you can stay put. Get a room mate and save their rent money. END
WHAT WOULD YOU DO?
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