Reply to Recovering from a real estate mistake

Forum Index » Real Estate

Reply to "Recovering from a real estate mistake"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]We moved to the area and purchased a home in a close in suburb in 2023. After getting wildly outbid 6 times we re-calibrated our expectations and put in an offer on a house that did not check all our boxes. We won the escalation that time and purchased the house. We realized we had made a big mistake almost immediately but realtor convinced us to go through with the deal using lots of scare tactics. (I could write a whole separate post of how terrible our realtor was and definitely took advantage of our lack of knowledge of the area, questionable comps in retrospect, etc).

We have since realized it was a horrible mistake and we are miserable in this house. The problem is that we cannot sell the house for anywhere close to what we bought it for. After watching over 2 years of comps we think we would lose 250k-300k selling the house, if not more. It is horrifying and SO embarrassing.  I would consider selling at a 100k loss worth it just to get out of the house but think that’s too optimistic. We’ve mapped out our options as follows:

— sell the house at a loss. This essentially locks in our loss, and while I doubt we will recover much value in appreciation any time soon it just seems foolish.
— continue to live in the house and consider putting on an addition and reno to give our family much needed extra space/better layout. This feels like sinking more money into an already underwater investment and I’m not sure we’d even increase the value of the home that much. We’d also have to live through construction. 
— tear down the house and build new. This might make some sense but we don’t have the capital for this.
— rent out the house and rent elsewhere. I calculated that this would increase our annual housing costs by $25k a year. This probably makes the most sense but I worry that this still leaves the house question hanging over us. Also there are almost no rentals in our kids elementary zone so very slim pickings.

Advice welcome and please be kind and constructive.
[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics