Expert: Hans Weber, Licensed Broker Associate - 6/23/2006

Question
Thanks Hans.  My asumption is the market will go down, interest rates are going up, no sign of them going down.  The home improvement money we thought we would have is gone (we paid more at closing than what our broker estimated) and the prospect of getting a home loan based on equity is years and years away (which any hope for building equity is further lost as interest rates increase and values go down).  So the future looks bleak.  The house just seems a money pit, just wondering if it's better to cut our losses.  Thanks again for your advice.
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Followup To

Question -
We just bought a house.  After being here, we really don't want to live here.  Does it make financial sense to put the house on the market and move or wait a year?

Answer -
Hi Jeff,
Thank you for your question.  I have to ask you questions in return to help you decide.

You probably spent a lot of money to buy your new house.  Selling it will also cost money.

What is more important?

If you really don't want to live there you should just move.  Whether or not you should wait a month, year or two shouldn't matter if you really don't want to live there.

The only difference between selling now and in the future would be the value of the property.  Will it go up or down?  When you bought the house did you plan improvements to increase the value?  Is the local market appreciating?  Where are you going to move to?

Hope this helps.
Hans

Answer
Hi Jeff,

Thank you for the clarifications.

Based on the scenario you are projecting you should sell and get out now into a comfortable rental and hope the market comes down a little so you can get back into a home at a lower price.

Interest rates are going to stay up so prices need to adjust to maintain affordability as sales slow and inventory rises.

But, be careful, don't wait too long to get back into ownership.

Good luck.

Hans