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HaX

Selling My House: How Much Of A Loss Should I Take

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Hi there,

In a bit of an irritating situation. Due to personal circumstances I am looking at relocating to a different city. Although not essential, life will be difficult if I don't.

I bought my house in 2006 for £107,000. I put down a £20,000 deposit and through mortgage repayments, my mortgage now stands at around £80,000.

In order to be competetive with other similair properties on the market, the house is advertised at £99,950. We had a viewing today and the viewer put in an offer of £86,000. When the estate agent asked if we would accept this, I said there was absolutely no way I could afford to sell at this price. The estate agent has since negotiated the buyer up to £92,000.

We had another viewing when the house first went on the market 2.5 months ago and were offered £95k straight away. Unfortunately the buyer was unable to secure the finance.

It is unlikely that I'll be buying another house straight away due to the limited availability of mortgage products and the loss I will make on my current house

I need to make a decision tomorrow morning, however am very concerned for several reasons.

  • *My £20K deposit and 7K worth of mortgage repayments will have turned into £9k after solicitors fees etc
  • *If I sell now while the market is at a low, I will be in a far worse position when wanting to re-enter the property market in the future

I would probably accept £95K, however £92k is 3k lower, and 3k makes a big difference!

Please advise for/against.

Cheers

HaX

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You're quite fortunate that you're in a position of positive equity and can walk away with some capital from the sale of your house. Certainly losing £x thousand will be tough to accept, but accept it you must because in reality you have no alternative.

Accept the offer, swallow the loss, and consider yourself lucky to have got out. Don't mean to sound harsh but it's true.

If you rent somewhere in the new city you may be able to get a place cheaply and rebuild your savings while watching the market fall further.

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How do new members get to start threads with a first post all of a sudden? :blink:

Anyways welcome to HPC!

92 seems like a great price, bite their arm off.

We currently have a bull market that isn't going to last, every bear on here that predicted a crash also predicted a dead cat bounce, they always happen and the underlying economy is nowhere near a recovery once you sort though the media spin.

Take the best offer and run, or you will be lucky to get 75 for it in 12 months time.

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Hi there,

In a bit of an irritating situation. Due to personal circumstances I am looking at relocating to a different city. Although not essential, life will be difficult if I don't.

I bought my house in 2006 for £107,000. I put down a £20,000 deposit and through mortgage repayments, my mortgage now stands at around £80,000.

In order to be competetive with other similair properties on the market, the house is advertised at £99,950. We had a viewing today and the viewer put in an offer of £86,000. When the estate agent asked if we would accept this, I said there was absolutely no way I could afford to sell at this price. The estate agent has since negotiated the buyer up to £92,000.

We had another viewing when the house first went on the market 2.5 months ago and were offered £95k straight away. Unfortunately the buyer was unable to secure the finance.

It is unlikely that I'll be buying another house straight away due to the limited availability of mortgage products and the loss I will make on my current house

I need to make a decision tomorrow morning, however am very concerned for several reasons.

  • *My £20K deposit and 7K worth of mortgage repayments will have turned into £9k after solicitors fees etc

  • *If I sell now while the market is at a low, I will be in a far worse position when wanting to re-enter the property market in the future

I would probably accept £95K, however £92k is 3k lower, and 3k makes a big difference!

Please advise for/against.

Cheers

HaX

Take your house off the market: £9k is paltry compensation for losing a place to live. Don't worry about negative equity, the Government aren't going to throw a million people onto the streets. If you aren't going to buy a place in your new location, you don't even need the cash for a deposit. Why would you sell? If the mortgage payments are high can't you refinance? The reason it will be a long time before we see significant falls is that people can survive on welfare without selling their nest egg house. If you can't beat them join them and keep your house you are a hardworkingfamily.

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Hi there,

In a bit of an irritating situation. Due to personal circumstances I am looking at relocating to a different city. Although not essential, life will be difficult if I don't.

I bought my house in 2006 for £107,000. I put down a £20,000 deposit and through mortgage repayments, my mortgage now stands at around £80,000.

In order to be competetive with other similair properties on the market, the house is advertised at £99,950. We had a viewing today and the viewer put in an offer of £86,000. When the estate agent asked if we would accept this, I said there was absolutely no way I could afford to sell at this price. The estate agent has since negotiated the buyer up to £92,000.

We had another viewing when the house first went on the market 2.5 months ago and were offered £95k straight away. Unfortunately the buyer was unable to secure the finance.

It is unlikely that I'll be buying another house straight away due to the limited availability of mortgage products and the loss I will make on my current house

I need to make a decision tomorrow morning, however am very concerned for several reasons.

  • *My £20K deposit and 7K worth of mortgage repayments will have turned into £9k after solicitors fees etc

  • *If I sell now while the market is at a low, I will be in a far worse position when wanting to re-enter the property market in the future

I would probably accept £95K, however £92k is 3k lower, and 3k makes a big difference!

Please advise for/against.

Cheers

HaX

If you don't want to crystalise the loss rent it out and rent somewhere where you are moving to... simples

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If you are expecting anyone on a website called HOUSE PRICE CRASH to tell you to hold on because prices are going to rise, then I think you need more help than I am qualified to give you.

Personally I would advise you to sell your property for the highest price anyone is prepared to pay you for it.

You're Welcome.

:rolleyes:

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Hi there,

In a bit of an irritating situation. Due to personal circumstances I am looking at relocating to a different city. Although not essential, life will be difficult if I don't.

I bought my house in 2006 for £107,000. I put down a £20,000 deposit and through mortgage repayments, my mortgage now stands at around £80,000.

In order to be competetive with other similair properties on the market, the house is advertised at £99,950. We had a viewing today and the viewer put in an offer of £86,000. When the estate agent asked if we would accept this, I said there was absolutely no way I could afford to sell at this price. The estate agent has since negotiated the buyer up to £92,000.

We had another viewing when the house first went on the market 2.5 months ago and were offered £95k straight away. Unfortunately the buyer was unable to secure the finance.

It is unlikely that I'll be buying another house straight away due to the limited availability of mortgage products and the loss I will make on my current house

I need to make a decision tomorrow morning, however am very concerned for several reasons.

  • *My £20K deposit and 7K worth of mortgage repayments will have turned into £9k after solicitors fees etc

  • *If I sell now while the market is at a low, I will be in a far worse position when wanting to re-enter the property market in the future

I would probably accept £95K, however £92k is 3k lower, and 3k makes a big difference!

Please advise for/against.

Cheers

HaX

I would suggest that you sell. firstly you circumstances dictate it, secondly, its a reasonable price in this market which will nosedive in a few more months. People seem intent on trying to avoid selling 'at a loss' but that implies that the nominal value of the house is the real value. Look at the last housing crash and see what a pound nominally will have bought before and after. Prices 'recovered' but they devalued against other things. They didn't really recover until they started inflating with credit. Get over the nominal figure and take the real one, then buy somewhere better down the line.

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Don't listen to this lot.

They will be telling you it's going to drop to £20 soon.

I'd either rent it out or stay put. It will go up soon and you'll have plenty of dosh.

AHAHAHAHhahahahahah.......pause.....HHHHAAHAHAHAHAHhhhaaaa. blonk. (head falls off)

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Take your house off the market: £9k is paltry compensation for losing a place to live. Don't worry about negative equity, the Government aren't going to throw a million people onto the streets. If you aren't going to buy a place in your new location, you don't even need the cash for a deposit. Why would you sell? If the mortgage payments are high can't you refinance? The reason it will be a long time before we see significant falls is that people can survive on welfare without selling their nest egg house. If you can't beat them join them and keep your house you are a hardworkingfamily.

the government are not in control of this, do you know what the business cycle is and what controls it?

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Sell !!

And all the time up to exchange of contracts pray too.......

The way some people here say just rent it out as if that makes sense and is sooo easy?? it will mean losing money for years and then try to sell when the house may be worth 70K ?? wtf

edit lowered what house might be worth -_-

Edited by tiggerthetiger

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Sell it to Sibley, you want to maxmise your return, he want's overpriced property, a match made in heaven, come on Sibley, offer £250,000, you know it makes sense, property only goes up.....................

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the government are not in control of this, do you know what the business cycle is and what controls it?

It's not the man from Halifax that comes knocking at 3 in the afternoon with some big friends. The Government find it within them to get involved between you and the bank and usually come down on the bank's side. They do it with abandon now, but eventually politically it will be impossible so hold on to your house no matter what you owe on it.

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Don't listen to this lot.

They will be telling you it's going to drop to £20 soon.

I'd either rent it out or stay put. It will go up soon and you'll have plenty of dosh.

Because its sibley I'm sure many will leap in before looking... but he speaks the truth ( or an option in any event).... if said prospective seller does not like the prospect of the potential loss he faces the looking at renting out his current property and renting something at the other end might be a suitable option.... he may even be able to achieve this without any cost to himself/herself. Its certainly right to lok at it and wrong to deride it without thinking.

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Don't listen to this lot.

It will go up soon and you'll have plenty of dosh.

Soon? Only soon? Perhaps you would like to state how soon is soon? If you are that confident, have you put that punt on the housing market futures yet, Sibbers?

Also, if he sells "soon" when prices have gone up, what will happen to the price of other houses in the town where he wants to buy? Won't they have gone up too?

To the OP:

A difficult question. Personally, I would tend to stick with the rent it out argument. However, I do not share Sibbers's confidence of a return to magic ever-rising house prices "soon", so you might be waiting a while - like about 10 years. As always if renting out, DYOR, inform your mortgage lender, get BTL insurance etc etc. Oh, and don't forget to pay your tax on your income (after taking in to account interest on your mortgage).

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How many people will view in August ... and offer a reasonable price (8% off asking). The summer bounce has finished. Prices traditionally drop in Sept. Trying to rent out (say 3.5%) return - taxed will I guess not cover your mortgage and you need somewhere to rent, at least in the short term in new city.

I would sell with acceptance of offer conditional on quick exchange and completion (both on same day if poss).

Ignore the trolls on this forum - some are quite funny but most are deranged.

he'll be able to pay the interest on the mortgage before tax though ( which you don't say) and he might be able to go interest only Plus he may get more than 3.5% yield ... you don't know as you don't know where it is or what it is ( could be les of course as well).

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people called me a fool for selling in december 07. You know what to do or you wouldnt have come here looking for advice.

Sell now. you need to move. renting sounds a good idead but where you live prices sound like they were at the lower end of the madness, so rent will be too. If interest rates rise your tennants rent will not.

Id say sack it off now. if it goes wrong IE your job changes etc, take it on the chin and move on- its not like uve lost a leg. If it goes right youve sold and can buy a much better place in future.

I dont know what the market will do but I know that in the short term you will be better off out of it. think of the stress of renting it out- much more of a nightmare than it sounds. If you get it wrong then ur getting no rent and paying for your new place for 5 months while you get the peeps out. You will also need to remortagage to rent legally and your rates will probably rocket.

sod it, sell and see what happens. Thats what I would do. If you love thew house and location then keep it but be prepared for wishing youd sold it...

whooop- look at me Im still young, *uve*, god I hate text speak :(, and smillies.

Edited by str mofo

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Best to think long term. Yes there's a possibility that prices will go up. But most people on this forum expect prices to dip further. Though 1000s of pounds may seem like a lot of money now, over the long term it's probably not such a big deal. Since you say staying in your house will make life difficult, I would suggest trying to push the buyers up a couple of grand, sell it and move on with your life. And then whether prices go up or down, don't regret the decision because it was the best that could be made at the time.

Simple fact is the house is not worth what it was. Probably when you come to buy a house in the future you'll do ok on it - these things balance out.

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