Recently, my company announced that they were relocating my office to St. Louis, MO. I don't own any property, but my fiance owns a condo with a current loan payoff of $103,000. The condo is in a complex that has gone rental since he initially purchased it, due to the current market. It's a nice condo, but a marketing nightmare due to that issue. My company's move package offers several homebuyer options such as a 5% bonus (taxed, so we get about 60% of that) based on the sale price of the home if we can sell it ourselves and they pay for all of our costs related to selling it-i.e., getting a realtor, inspections, etc. We have a buyer-a guy who works with my fiance-and his offer is $90,000. Given the current market and what's available, this is fair, but it's still a $13,000 loss for us. We would have the 5% bonus and about $3,600 extra in lump sum assistance from my company to apply towards that loss and my company is fine with having my name added to the deed as I'm not currently on it. My question is, as someone who knows very little about the buying and selling of property and it learning in a really fun economical climate (sarcasm intended), is this loss worth it? I have a job offer in our current town that would pay pretty much the same salary that I make now for very similar work. Do we take the hit and get rid of the condo while we can or do we sit on it for a few years and wait to see what happens? We like the condo and though we do eventually want a home, it's not like we have to have one by this time next year or throats will be cut. On the other hand, we know the condo being in what is essentially an apartment complex is a huge negative from a selling point-we're worried we may never have this opportunity again and will wind up stuck with this condo until we die-whether we rent it out or live in it forever. There are a handful of owners in the complex-all looking to sell and getting nowhere. I should mention that in terms of living in our current town vs. St. Louis, we're ok with either option. The big thing is this condo and whether or not we wait out the current conditions in the hope that eventually we could come out whole or we take the hit and get out of it while we can. So what do we do-suck it up or wait it out?

Recently, my company announced that they were relocating my office to St. Louis, MO. I don't own any property, but my fiance owns a condo with a current loan payoff of $103,000. The condo is in a complex that has gone rental since he initially purchased it, due to the current market. It's a nice condo, but a marketing nightmare due to that issue. My company's move package offers several homebuyer options such as a 5% bonus (taxed, so we get about 60% of that) based on the sale price of the home if we can sell it ourselves and they pay for all of our costs related to selling it-i.e., getting a realtor, inspections, etc. We have a buyer-a guy who works with my fiance-and his offer is $90,000. Given the current market and what's available, this is fair, but it's still a $13,000 loss for us. We would have the 5% bonus and about $3,600 extra in lump sum assistance from my company to apply towards that loss and my company is fine with having my name added to the deed as I'm not currently on it. My question is, as someone who knows very little about the buying and selling of property and it learning in a really fun economical climate (sarcasm intended), is this loss worth it? I have a job offer in our current town that would pay pretty much the same salary that I make now for very similar work. Do we take the hit and get rid of the condo while we can or do we sit on it for a few years and wait to see what happens? We like the condo and though we do eventually want a home, it's not like we have to have one by this time next year or throats will be cut. On the other hand, we know the condo being in what is essentially an apartment complex is a huge negative from a selling point-we're worried we may never have this opportunity again and will wind up stuck with this condo until we die-whether we rent it out or live in it forever. There are a handful of owners in the complex-all looking to sell and getting nowhere. I should mention that in terms of living in our current town vs. St. Louis, we're ok with either option. The big thing is this condo and whether or not we wait out the current conditions in the hope that eventually we could come out whole or we take the hit and get out of it while we can. So what do we do-suck it up or wait it out?

I would take the offer and move on based on your description of the situation. Sell it and get out while you can.

Of course, it's better to get advice from a local agent.

what are they selling for? asking for? remember you can probably deduct the loss

If that's all your upside down consider yourself lucky. I have clients that are 30k to 40k under.

If I was you I would sell it now. Values will keep going down most likley for awhile.

You would more than make up for it on your purchase most likley.

You have to rememeber that if you wait 2 to 3 years to sell yes it will probably switch again to a nuetral to a sellers market but interest rates will probably be higher then and the great buyer deals will no longer be out there.

see other posts, but I've seen people hundreds of thousands underwater

Absolutely, and although any loss is difficult to accept, you are lucky is not more as SuperRealtor indicated. In Florida, where we've been hit hard, is not unusual to see losses in the hundreds! $200K to $300K loss in value is common.

Depending on the type of financing, the buyer might not find a lender if the ratio of Owner occupied vs. rentals is too low.
Call a lender for info. if the "complex" is on the condo list.
I'd sell now, even if it's a loss, it might be impossible to sell later.

sell, take the money and run!

SELL SELL SELL!

Sounds like a no-brainer to me.

Sell if it is possible given the excellent advice Pikes Peak gave you. If selling is not possible because of lending requirements, you may have to look at renting it OR trying to sell it by offering owner financing.

Personally, I would have the fiance move away and remain in the property while she kept up the payments. Put it up for full value and visit her once in a while.

Super REALTOR and the rest of the gang are correct on this one. the next post I want to see is you saying I sold it! Please don't wait this out!