Taking a loss on your home - in order to buy up
For anyone who bought an overpriced home during the bubble, this spring has got to be particularly painful.
Home prices are hardly a steal within 128, but some buyers with a little more spending power than first-timers can make out all right. As you head out towards 495 and beyond, the deals become more numerous - though gas prices have gone haywire again so commuting is a concern. (I filled my tank the other day and it cost me more than $40 - haven't seen that since 2008.)
Basically, a home that you could not afford during the bubble years is suddenly within your league, yet you are stuck with your overpriced little Cape or condo.
But are you? Here's one option that I am starting to hear more about - selling at a loss so you can move on and up.
One couple out on the edge of the western suburbs recently found a buyer in a matter of day or two for their condo after putting it on the market for less than they bought it at the bubble's peak.
They'll bridge the loss with a loan, freeing them to move across the country where home prices are cheaper.
Another couple took a loss on their nice but small Wayland house and then snagged a larger home in the area for 20 percent less than its last listing price.
These are not short sales - it's the homeowners, not the banks, who are taking the hit, with the lenders being made whole.
Two things are striking here.
If you truly offer a bargain when selling your house, it will sell fast, even in this market.
Secondly, it may be worth taking a hit now in order to move up to something better.
But what's your take?
Is it worth freeing yourself from an overpriced home in order to try and get a better deal? Is it worth the risk?
