Are you “upside down” in your condo?
I have had 3 clients (or potential clients) talk to me about the idea of selling their home in downtown Seattle this year.
I did the homework, and it is a rough time to sell. Condos are not selling for as much as they were at this time last year.
The whole downtown condo market is suffering from reduced demand as fewer people seek the downtown urban lifestyle.
- More tech employees are working remotely, and don’t value being “close to the office.”
- Millennials are growing up and seeking single-family homes rather than condos
- Downtown Seattle continues with its unsavory trends that are driving people to the East Side and Bellevue rather than the Seattle downtown urban core.
If you DO owe more than it’s worth… what can you do?
- Sell at a loss, it’s hard to stomach writing a big check to get out from under-investment.
- Rent it out, this can be a lot of work if you do it yourself. You can hire a property manager – usually for 10% of the gross rent.
- Stay put and learn to love your condo again.
Unfortunately, there are no silver bullets for this situation.
In 2008, people were FORCED to sell for financial reasons. If you are behind on payments and facing foreclosure, you may be able to get your lender to consider a Short Sale. But if you’re financially solvent, this is unlikely. Short-Selling a home is a last resort and has a big negative impact on your credit score. You are also liable to pay taxes for the bank’s loss, which will appear as income on your tax return.
If you can – ride it out, or pony up!
It’s a bummer, but that’s the reality for many short-term condo owners
If you need a detailed look at your condo’s value so you can decide what to do, let me know. I won’t sugarcoat it. I want you to be able to make the best decision for your situation.