So what would you do when you own a house in today's market when you have bills?

Question

(you can skip to the end to read the question if you dont want to read...but it would help to read.)

Ok so we got a situation. We really need some out side opinions, and this is just the place!

So, first of all, we own a house that we have fixed up and put on the market since October of last year. Its a nice, non association manufactured home on a one acre piece of land. Everything inside the house is completely remodeled. New flooring and fresh paint throughout the entire house. Equiped with new cabinets, appliances, and doors.

Now here is were our problem starts. The house is very nice and is worth about 159, but it has not sold and our family needs the money. With that, the house's price has been lowered over time. We started at 159, and over time, have now ended up with 129. And that is the final price.

Now here is our main problem. We owe a partner $60k portion of money when the house sells. AND on top of that, we got some bills to catch up on. and that adds up to about $100k just to catch up.

So here is the question. What would you personaly do? Would you WAIT untill the market gets better and build some equidy and maybe add some curb apeal to get a better profit later on? Or would you continue to keep it on the market?

I mean,We dont want to just "GIVE" the house away. But, we kind of need the money to pay off our partner. But we really arent hurting. Were doing just fine without the money, and could continue to be doing fine..it just would be nice to have in our pockets, you know.

So...what do you think? What would you do?

Answer 1

You really don't have much choice. Stay there and enjoy the house. Be patient and real estate will appreciate and you will get the money invested in the land back in a reasonable time. The mfg home may not appreciate very well and you could take a beating on that but the land is surely worth good money.

If the partner needs his or her money then you may have to make arrangements to pay off that indebtedness. As for the other bills just keep up your payments and don't take on new debt.

The real estate market is showing some signs of reviving in some areas, but you are just going to have to wait. For the time being take the house off the market because it will not attract buyers after being on the market so long.

Answer 2

First off let me say-you believe the house is worth 159, but it's only worth what someone will pay for it, which sounds like it might not even be 129.  If you do sell this place, where would you live?  Or is this not your residence, just a home you bought to flip and make a profit on?  You owe the partner 60k when the house sells-so have you considered talking to this person about it?  If they are pressuring you to pay them back, then you will probably have to keep lowering the price until you find a buyer so you can repay the loan.  If you are not getting pressure to repay the loan you could take it off the market during the slower winter season and re-list it next spring.

Answer 3

Manufactured homes don't gain value like traditional homes, they depreciate.

Answer 4

So, it looks like to me that you are going to be over $30,000 in debt after you pay the partner back and get your bills paid.  If it is not absolutely necessary that you move, I would just stay where you are or you will be in the red.  Is there a reason that you HAVE to move right now?  It seems like you would be worse off.

EDIT:  I would keep the house up for sale for now, it isn't hurting anything.  As far as the market turning around, it may take a couple more years, and even then, it won't be like it was a few years ago.  It was a frenzy!  It wasn't unusual to have multiple offers on a property within a week after listing it.  Just make sure you are not over priced for the area, or it will never sell.  When and if you do sell, not only will you have to pay your partner back, and pay off those debts, you will also have closing costs.  What you have left may not be as much as you think.

Answer 5

Manufactured homes NEVER gain equity.   They only loose value, being at zero at about 30 years.

If the home is older then 15-20 years you have the problem with the buyers obtaining financing.....they won't.  You need a buyer with cash.

Most people with 129k cash are not going to buy something they know will steadily loose value.

Your only salvation here is the acre of land, you need to find someone to buy that.   They will most likely haul that "house" away and build something real.   But, the existence of sewer lines, power and all of that makes your acre more attractive.

It sounds like you will be OK if you sell the lot for 70k, this may be your only option.

With real property is available wherever you are for 129k, and I suspect it is, there is no possible way, unless a major idiot comes along, that you will be selling a manufactured home that high.