Is "a bird in the hand worth two in the bush" in todays Real Estate Market? I got an offer.?

Question

We live in an area with a marked drop in real estate prices - New York. It's strictly a buyer's market here.

Our house, which we bought at the peak of the market 3 years ago, is for sale. We have to leave for a warmer climate for health reasons.

We just received an offer for 20% less than what we paid for this house 3 years ago.

This amounts to over $125,000 less. But....it's a firm offer.

Would it be wise to accept that, or wait it out? The house was up for 5 months. This is the only offer we received.

Answer 1

If you're getting an offer in this market, you're doing better than a lot of American homeowners.

The question you're asking is speculative. If we knew the market would come back and you could get more than what you paid for your home in 1 year, I'd be buying houses in New York.

The market is volatile. If you can walk away happy, selling it for 20% less than what you paid for it, that is up to you. I wouldn't however speculate, based on the advise given on Yahoo Answers.

You gotta know when to hold em, know when to fold em, know when to walk away, and know when to run, as Kenny Rogers says.

If you have to move, you have to move.

Answer 2

How will you make up the difference? Cash?

Unless you can get the bank to do a short sale, you're going to have to write a check.

Answer 3

Yes to your title question.  You might want to counter offer, but do not under an circumstances reject it.

Your agent should have advised you that after owning for only three years, you should expect to take a loss on the house, especially if you bought at or near the peak in your local market’s values.