Recovering from a real estate mistake

[Anonymous]

Anonymous wrote:

Anonymous wrote:How can it be that bad if so many people where biding on the house and you escalated? Just renovated the house and live through it, sit on the property for 5 years and then sell it if you really must.

Maybe they didn’t use the escalation clause and just overbid? But still seems odd to overpay by $300k - the house wouldn’t appraise, for one thing.

It seems more than odd. It seems close to impossible. The DMV is an outrageously expensive place to live, but this isn't Bel Air.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We’re in this situation, or close to it. Overpaid at the PEAK of the market including interest rates. House ended up having significant issues we discovered after the sale that will legally require us to sell as-is unless we spend $200K+ to fix them.

However, we LOVE our location and the lot we’re on is surrounded by new builds. So we’re debating selling at a loss to a developer and move on, teardown + rebuild, or stay for 5-8 years and spruce it up via an interior designer.

Nothing legally requires you to sell as-is but you would need to disclose anything major.

Again also confused about why if you overpaid the move would be to lock in your losses by selling???

PP. The part I didn’t add to my original post because I didn’t want to be obnoxious was our HHI has tripled since we bought (big career move) and is higher than our mortgage by a lot now. So there’s a level of “why are we choosing to deal with this when we don’t have to” too.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We’re in this situation, or close to it. Overpaid at the PEAK of the market including interest rates. House ended up having significant issues we discovered after the sale that will legally require us to sell as-is unless we spend $200K+ to fix them.

However, we LOVE our location and the lot we’re on is surrounded by new builds. So we’re debating selling at a loss to a developer and move on, teardown + rebuild, or stay for 5-8 years and spruce it up via an interior designer.

We are in this situation. How much would you lose if you sell? It could be a wash if you thinking about how much it would cost to fix vs. locking in your loss by selling now.

We are just sucking it up and fixing the problems. 1) the loss, 2) we'd have to pay more for something else in our area, 3) there really isn't anything we like more than our house, which we love everything about except the issues.

PP, catching up. If we sell, we’ll lose $100K or so - maybe more if builder activity slows down since this will only sell as a teardown. Teardown lots in our immediate area are selling for just under $1M or so. We love our location though so we may rebuild entirely on our lot if the comps for new builds in our area keep going the way they are.

[Anonymous]

We still have not heard what is actually wrong with the house. What makes it unlivable?

[Anonymous]

How are your retirement savings, 529, and emergency fund? Next hos safe is your job?

If yes to all the above I'll sell and move. Enjoy life while you are young and healthy.

If finances are in order a $300k loss is worth a happy life in my opinion.

[Anonymous]

Sell and move on

[Anonymous]

OP, some context would help. Location. Purchase price.

[Anonymous]

Op I get your pain. Was in similar situation back in 2009, purchased the wrong lot for a new build. Regretted it the minute after signing closing docs. We hated the location. Market tanked next year or so would have lost est $200k dumping it. Moved forward to construct the home, lived in it and then sold in 2023 - about 10 years later. Instead of losing $200k, we made about $500k! Patience and time is your friend. Either rent it out or construct new. Don’t give up.

[Anonymous]

the rules of real estate

location, location, location, schools

[Anonymous]

Anonymous wrote:the rules of real estate

location, location, location, schools

That’s not what the op asked for but thank you for sharing your vast wisdom

[Anonymous]

Can you specify the reasons why you do not like this house??

[Anonymous]

OP is a ghost and has vanished.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We’re in this situation, or close to it. Overpaid at the PEAK of the market including interest rates. House ended up having significant issues we discovered after the sale that will legally require us to sell as-is unless we spend $200K+ to fix them.

However, we LOVE our location and the lot we’re on is surrounded by new builds. So we’re debating selling at a loss to a developer and move on, teardown + rebuild, or stay for 5-8 years and spruce it up via an interior designer.

Nothing legally requires you to sell as-is but you would need to disclose anything major.

Again also confused about why if you overpaid the move would be to lock in your losses by selling???

PP. The part I didn’t add to my original post because I didn’t want to be obnoxious was our HHI has tripled since we bought (big career move) and is higher than our mortgage by a lot now. So there’s a level of “why are we choosing to deal with this when we don’t have to” too.

Well, you are smart enough to triple your income but need to ask this question? GTFO. If your finances are in order, do what you want to do.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We’re in this situation, or close to it. Overpaid at the PEAK of the market including interest rates. House ended up having significant issues we discovered after the sale that will legally require us to sell as-is unless we spend $200K+ to fix them.

However, we LOVE our location and the lot we’re on is surrounded by new builds. So we’re debating selling at a loss to a developer and move on, teardown + rebuild, or stay for 5-8 years and spruce it up via an interior designer.

Nothing legally requires you to sell as-is but you would need to disclose anything major.

Again also confused about why if you overpaid the move would be to lock in your losses by selling???

PP. The part I didn’t add to my original post because I didn’t want to be obnoxious was our HHI has tripled since we bought (big career move) and is higher than our mortgage by a lot now. So there’s a level of “why are we choosing to deal with this when we don’t have to” too.

Same for us, and we chose to renovate and stay in a neighborhood that is often derided here. We like the financial flexibility it affords us (and lack of the striver/how-can-you-help-me mentality).

Renovating is a huge pain, but so is listing, selling, and buying. And you get to customize!

[Anonymous]

Golly. OP is a troll, probably part of the recent flurry of anti home ownership posts we've had in the last few days over on the money forum.

The only properties OP could be genuinely 200-300k underwater around DC is a super expensive property. As in pay $4M and now worth 3.7. But it doesn't make sense given everything else she alleges. And people who can afford $4M aren't worried like she is.