Halp Should I take this offer?

dbzeag

Wants to kiss you where it stinks
Jun 9, 2006
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Less than 3 years ago, I bought a condo. I picked it up for $74K, which at the time was a bargain (places in the same condo were going for $120K).

Fast forward to October 2009, I get laid off or relocate to Texas. I took the second option and so therefore put my condo on the market. Begrudgingly I accepted my realtor's asking price of $60K (which was the higher of the two).

Fast forward again to today. I got an offer this morning. My first offer. $50K. 2 bedroom, 1.5 bath, hardwood floors, free water/hot water, indoor pool, underground car wash/parking, $1211 a year taxes, $50K. 900sq ft, custom tile floor in kitchen, new dishwasher, "a patio you can play cornhole on", $50K. $10 cab ride or 5 minute drive to downtown metro area, one block away from the lake and across the street from a beach/park and walking distance to grocery stores and 5 bars, $50K.

And I now I have 2 days to decide to accept the offer or wait what is looking like another 4 months to sell it. Keep in mind I am paying rent in a differnet place already.

I still owe $67K on the place (as I have only been in it less than 3 years) so I am upside down even if I got what the realtor was asking for it.

Do I stop the bleeding now or hold on in one of the worse cities to be selling right now?
 

dbzeag

Wants to kiss you where it stinks
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If was allowed to rent it out, this point would be moot. Financially I MIGHT be able to hold out, but in the long run it wouldn't pan out.

And it is Cleveland, and it is a condo. They won't bounce back much if at all anyway.
 

dbzeag

Wants to kiss you where it stinks
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Yes, there is that. My company was going to give me either 100% or 75% of the difference from my purchase price to the sale price. So in this instance, I would get either 100% or 75% of $24K. $50K + $17K would pay off the mortgage then there would be another $7K to play around with I guess. That 75% number is getting worked out, and what/where that $7K goes is getting worked out, too.

But that counts as income so gets taxed accordingly.
 
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Coqui

Piccolo Pete
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Yes, there is that. My company was going to give me either 100% or 75% of the difference from my purchase price to the sale price. So in this instance, I would get either 100% or 75% of $24K. $50K + $17K would pay off the mortgage then there would be another $7K to play around with I guess. That 75% number is getting worked out, and what/where that $7K goes is getting worked out, too.

But that counts as income so gets taxed accordingly.
Would you rather continue to pay a mortgage as well as property taxes?
 

dbzeag

Wants to kiss you where it stinks
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Dump it if you can't rent it.

Extra bonus with your company helping you out, no brainer there.

Just make sure you set aside enough to cover the taxes next April.
Now that I think about it. The taxes would be on the extra, the $7K. Technically I signed over the mortgage to the relocation company that is working with the realtor. They are closing the sale, not me. Technically the "income" my company would give me to reimburse instead goes to this relocation firm to be applied to my mortgage directly. Since it is not on my W2, I might not be taxed.
 

Coqui

Piccolo Pete
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Now that I think about it. The taxes would be on the extra, the $7K. Technically I signed over the mortgage to the relocation company that is working with the realtor. They are closing the sale, not me. Technically the "income" my company would give me to reimburse instead goes to this relocation firm to be applied to my mortgage directly. Since it is not on my W2, I might not be taxed.
I think you just answered your own question.