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How Can We Recover After Hurricane Sandy? - Peggy

Dollar Stretcher Readers Question

Dear Steve,

July 1st we began to repay a re-finance on our home as a means of consolidating all my husband's credit cards, and personal loan. We owe $129,511 at 3.75% for 15 yrs. $1529/mo. We've live in a semi-detached, split level home for 37 yrs. The house is built on a concrete slab. The re-fi allowed him to close out everything save one credit card. On Oct 29, 2012 our home was affected by H, Sandy...through flood insurance, and donations we have rebuilt and repaired our crawl space,1/2 bath, and den, and backyard.

I will be 65 in Oct., and husband will be 70 yrs. in Sept. Our next door neighbor is 76 and very ill, unwilling to move for her own reasons. Before Sandy the house was valued at 350K, now it may be 300K.

Question What should we do to sell, so we can sell and move? What's the best price to ask? Thanks!

Peggy

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Dear Peggy,

Thank you for writing in and asking your question.

In situations like this there are two ways of looking at the situation. Most people review the situation emotionally and make decisions based on wants and wishes. The other way would be look at the financial reality of the situation.

It might just be that rebuilding the house makes no financial sense if insurance is not sufficient to cover the costs and all you've been able to manage to rebuild is just part of your old house.

At your age we need to evaluate what you can accomplish without robbing your retirement funds or setting yourselves up in a monthly position where you can't afford to get by.

It's too early to know what the right decision is at this point without having some good information about the sales price of your current property. And the only way to really determine what the sales value might be would be for you to pay for an appraisal. The appraisal would be a professional evaluation of what other similar condition properties have sold for.

Outside of paying for the appraisal you could talk to several local real estate agents and try to get an idea what the property might be worth. But you will need to be careful and watch for agents who inflate the suggested value just to convince you to list your property with them in hopes of it selling for a higher price.

It's unfortunate that you did the refinance before we tackled the real underlying issue here of the apparent house status. It would have been preferable to look at the total overall situation before paying for the consolidation.

My advice at this point would be for you to get a good understanding of the value of your property before you do anything. Once you do that, contact me again and let's move on to the next step.


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About steverhode

I've been helping good people find answers to bad debt since 1994.

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