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#1
05-23-2006, 04:13 PM
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I sold my condo! Here\'s my story.
My condo sold! It went swimmingly! I couldn't be happier!
Here's my story, with some nitty gritty financial details. About three years ago I started feeling a lot of pressure to buy a home. I resisted for all the normal reasons: I didn't want to commit to my city, I wanted to travel, I was risk averse, what if I needed/wanted to move, I didn't want to pay more than I was paying in rent, I was comfortable in my apartment, I didn't have anything saved for a down payment... But, I gave in and purchased a small condo for $99,500. And I really liked it. I still like the area - I just see so much potential. It's close to the university, close to the Strip, close to the airport. The complex is really well maintained and it suited me. I like cozy spaces - maybe they make me feel like I'm back in the womb or something. Or maybe I was just born to live in New York. Either way, I liked the place. And then I met Ed and fell in love. And we decided to get married. But Ed didn't like my condo. He didn't want to live there. Besides, it was mine and I didn't really want to share [img]/images/graemlins/smile.gif[/img] So, we moved out of it into an apartment and planned to sell it. I got an estimate from a real estate agent and even though it had appreciated, it wasn't enough since I only lived there a year. I wouldn't make any profit after the fees. Well, then Ed's mom's house got destroyed by a levee broken by Katrina. And she needed a place to stay. So, we rented the place out to her (which was free for her, by the way, since FEMA gave her a rental allowance for 6 months). She didn't really dig the place as much as I did, but it was a roof and it was near family, so it worked out. None of the Millers liked my condo! Anyway, after the six months were over, we re-evaluated the condo's value and decided to sell it. The estimated value realtors gave me was $117,000 - $120,000. I told my realtor to list it at $124,900. He tried to tell me I wouldn't get that and maybe I should list lower, but I refused. Then one just like mine sold for $123,000. My offers came in all the way up $129,000! And today I found out my realtor just sold another one of my neighbor's places (identical to mine) for $130,000. That's about $209/square foot. After the fees and all I cleared $22,000. And I have to pay taxes since I only lived there one year. And it cost me about $12000 to live there over the course of my ownership. So, I walk away with $10,000. I think there are easier, less risky ways to make $10,000. But I'm really glad I did it. I feel like I learned a ton and it didn't cost me anything to learn. I got a little lucky, but I also made a few good decisions - like ensuring the CCRs didn't forbid investors and that my loan didn't have a prepayment penalty. Next home will be owned for more than one year [img]/images/graemlins/smile.gif[/img] heh. The way the tide is turning, I feel like we may need to own this one 5-7 years at least. Cliffnotes: Bought condo for $99,500 with zero down Sold for $129,000 Profit $22,000 after selling fees, commissions, etc. Paid about $12,000 in payments (interest and principle), fees, taxes, etc over course of ownership & sale Net profit about $10,000 Caveat: most likely not typical results; don't try this at home; a meager $10,000 isn't worth risking $100,000 for the debt and risk averse, like me So, other stories..? I'm particularly interested in failures, so I can avoid them in the future. 
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#2
05-23-2006, 04:48 PM
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Re: I sold my condo! Here\'s my story.
Congratulations! But one part of your math I don't understand. You paid $12k in (interest + principle). Probably not much principle, but no matter how small it was, it was went right back into your pocket when you sold, so it wasn't a cost. Also, you probably recieved income tax deductions from paying interest & property taxes, if so you should add that back as part of your "profit".
Lastly, you might also compare your after tax interest cost + fees + taxes to what you would have paid in rent. If significant, the difference should be added or deducted from your profits. Example: You would have rented a similar place for $500 per month, but instead you bought it and paid $400 per month in after tax interest/taxes and fees. You are $1200 a year ahead. Or if your condo actually cost $600 per month, you spent an additional $1200 to be a home owner that year. Either way, I think you did very well. I'm surprised the condo market is still so hot in LV. My guess is that you got out at a good time.
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#3
05-23-2006, 06:12 PM
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Re: I sold my condo! Here\'s my story.
[ QUOTE ]
Either way, I think you did very well. I'm surprised the condo market is still so hot in LV. My guess is that you got out at a good time. [/ QUOTE ] I think that this particular property was hot, but that the market in general is more tepid. The reasons this property was hot: 1. Near UNLV. In fact, the buyers were parents buying it for their son to go to school. 2. Low absolute price. Some people prefer owning to renting almost without qualification, and this is one of the least expensive properties in the whole LV area that is in a fairly nice neighborhood. This property would be perfect for the, "I just want to own SOMETHING," people who are on a tight budget. 3. The property itself is one of the nicest ones in the neighborhood. Anyone who was visiting condos in the area (and price range) would see this one and think, "Wow, so much nicer than everything else." Elaine bought the property in our first month of dating. At first I remember being suspicious, but I soon came to the opinion that her choice of property was excellent. She found the cherry, I think, and she was rewarded with a nice place to live and generous appreciation. It was a cool experience. It was Elaine's first property, and I've never owned one yet, so we learned a lot.
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#4
05-23-2006, 07:31 PM
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Re: I sold my condo! Here\'s my story.
Just to clarify--FEMA only paid for three months of rent. I was on my own after that, since FEMA claimed that my alternate living expenses were covered by insurance--which according to my policy they weren't. To my surprise, my insurance company actually did pay something toward my alternate living expenses, so between FEMA and my homeowners' policy, I did manage to pay the rent while also paying the mortgage on my ruined house.
Also I had a great deal of difficulty coming to terms with being rendered homeless with nothing but the clothes on my back, and I would not have been happy anywhere, even if I had been given refuge in the Queen's own apartments in Buckingham Palace. I was just too traumatized. This is no reflection on Elaine's condo which was actually very well designed and comfortable. Because I have painful arthritis and a heart condition, I did have problems negotiating the stairs to the second floor, and I can get around more easily now that I live in a first floor unit. The other problem I had (which again has nothing whatever to do wih the merits of the condo itself) was that my closest neighbor was extremely bizarre, and, considering that she was a frumpy middle-aged maiden lady, she made an incredible amount of noise all day long, playing Wooly Bully and What's Love Got to Do With It so loudly that the building shook. AARGH! I am most grateful that ELaine made her condo available to me when I was in desperate need of refuge, and I think it's terrific that she was able to make such a tidy profit in so short a time. While I was talking to Edward today about the arrival of the new book (actually I was saying Yippee!), I got a call telling me that a charitable group would be coming next week to gut my moldering house. That's another step. When I manage to divest myself of the property, either by selling the lot or more likely by government buy-out, I will probably go looking for a small house to buy. I really don't like renting in a complex--I guess I am one of those people that Elaine mentioned as feeling the need to own SOMETHING.
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#6
05-23-2006, 11:57 PM
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Re: I sold my condo! Here\'s my story.
[ QUOTE ]
I also made a few good decisions - like ensuring the CCRs didn't forbid investors [/ QUOTE ] Fuzzy Monster, What does this mean? Thanks
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#7
05-24-2006, 01:45 AM
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Re: I sold my condo! Here\'s my story.
[ QUOTE ]
1. Near UNLV. In fact, the buyers were parents buying it for their son to go to school. [/ QUOTE ] Wow, someone bought a condo for their kid just because he was going to school? Why not have him live in the dorms? Just curious and interested
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#8
05-24-2006, 02:08 AM
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Re: I sold my condo! Here\'s my story.
Hack,
They probably thought it would be a better investment then paying for his dorm every month.
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#10
05-24-2006, 02:41 AM
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Re: I sold my condo! Here\'s my story.
CCRs are Conditions, Covenants, and Restrictions. They are the rules you agree to when you live in a Home Owner's Association.
Almost all condos and many homes now have HOAs. There are monthly dues that usually go to maintain community areas like parks, pools, signs. Sometimes they just go to fund a group of regulators who go around citing home owners who drive loud vehicles or who don't maintain their front yard landscaping... HOAs are very popular in new developments. And lots of people like them because they often maintain the property's value, though at the cost of some freedoms. Anyway, the CC&Rs state whether the home owner can or cannot rent out their unit.
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