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Losing Money on Condo |
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I have a condo that I am renting to a tenant. I originally bought the condo 3 years and 3 months ago for $215,000. We owe $193,000 on it and the mortgage is a 3 year ARM currently at 5.75%. Our renter only pays $1500/month rent and the mortgage payment is $1819/month plus $150/month condo association fees. We need to get rid of this thing! We have a house that we live in and our mortgage payment is $1343/month. We have tried to sell the condo during the first 6 months of the year but it would not sell. We had it listed as low at $199,000. The condo is in a neighborhood with $400,000 homes, has very good schools, and great community. The taxes are very high. We pay almost $5,000 in property taxes. The county tax assessment on this condo last year was $179,000 but this year it was just assessed at $245,000!! So it has goen up in value. My renter's lease ends on Feb 27th, 2007. He agreed that I could put it on the market on Dec 27th. How can I sell this condo? What should I price it at and how can I sell this quickly? |
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First of all, you have my sympathy. Yes, you do "need to get rid of this thing." I figure that you're losing more than $1,000 a month on it. When you started trying to sell it in January, you could have asked $10,000 less than you did, and if that would have been enough to get it sold, you'd be ahead of where you are today.
Sounds as if you'd better bite the bullet and list at whatever price it will take to sell it, even if you have to put in some of your own money to pay off that loan. Otherwise you'll just keep bleeding your own money slowly, a grand a month.
Call three local real estate brokers who are active in your area, get their advice on price, list a few thousand below their suggestion because a quick sale will save you money. Consider -- if you offered the place for $2, it would sell tomorrow. Maybe today. And somewhere between $2 and $199,000 is a price that will attract buyers.
As for the new assessment -- it doesn't really prove your place is worth more. The only thing that counts, in the end, is the judgment of the buying public. |
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Edith
Originally published on October 28, 2007 |
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