(Closed) Anyone else own a home that is now underwater?

posted 7 years ago in Home
Post # 3
7431 posts
Busy Beekeeper
  • Wedding: October 2009

You probably got the property tax statement, which isn’t the true value of your home. Mine is currently $208k, but my house is worth $230k. My mortgage guy explained it to me before, but I forgot what the basis is for the difference. I think by the time you are going to buy again, prices should go up

Post # 4
9056 posts
Buzzing Beekeeper
  • Wedding: June 2010

We’re not necessarily underwater, but if we sold our condo today, it would likely be for about $40,000 less than we paid.  After realtor’s fees and taxes, we’d lose about $60,000.  We had a downpayment, and have paid it down in the last couple years enough that we would walk away about “even”, but with nothing for our next downpayment.

Post # 5
772 posts
Busy bee
  • Wedding: December 2011

Honestly, housing should be a place to live, not an investment in this market.  Think of it as having a place you like to live that you also might be able to build equity in IF you hang in over the long term.

You would likely have to delay buying beyond even today to not lose money.  Would you have been willing to wait that long?  

Post # 6
10367 posts
Sugar Beekeeper
  • Wedding: September 2010

Would you lose more than if you had rented during this time? I think that’s the number you should really be looking at, if you are looking at your home as an investment.

Definitely a lesson for not just getting into any old “starter home” that doesn’t match your long term needs. You have no control over what the market can do – the best thing you could do for yourselves is wait until you have a large (20+%) down payment on a home that you can see yourselves living in long term, if not forever. That way, if you need to stay, you won’t be stuck in a house that is too small!

Post # 8
88 posts
Worker bee
  • Wedding: September 2009

When I look up my home value on zillow.com, it fluctuates all the time. Some days it is supposedly worth less than what we paid, some days it’s worth 30K more than we paid. I wouldn’t trust any estimate where the person hasn’t been inside the house. And I focus on doing both big repairs and smaller stuff (painting, light fixtures) than will increase value to a future buyer when we do decide to sell. That kind of stuff won’t be taken into account unless you get a formal appraisal or a broker price opinion, so I don’t worry too much about other estimates.

Post # 9
1137 posts
Bumble bee
  • Wedding: September 2010

There is no way to “time” the housing market. It could have very easily gone up the past year and you would have been saying “I wish we would have bought last year!” If you’re living in your home and enjoying it, the value on paper doesn’t really matter. Hopefully when you go to sell it, the value will have risen. If property values are still low when you sell, that means that your next house will be less expensive as well. 

Example: My parents sold our family house in 2005 at the top of the market and bought a condo. The value of their condo is now half of what they paid for it, BUT if they would have waited until now to sell our house, they would have sold it for half of what they got. The market works both ways….

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