I have to Practice what I Preach

It is easy to give advice to clients, friends, and family when it does not directly affect you.
In this situation I had to practice what I preached.

My family has owned a condo in Florida for over five years. We bought this condo to enjoy with our family not as an investment.

Then the housing market collapsed. The result: The market value of the property went down by 53%

After three attempts at a short sale, loan modifications, and refinancing, we were at a crossroads. Do we continue to put money into the property or cut our losses and move on?

It is easy to tell your clients to cut their losses, take money to closing, and move on. It is easy to tell your clients to run spreadsheets, do a cost anaylsis, and see if the property will return a positive investment.


Now it was time for me to take my own advice. I ran the spreadsheets, did the cost analysis, and conferred with my financial planner, and accountant. The answer was the same: Sell the property, take the loss, and move on!

I did not like the answer. I spent countless hours rationalizing why I should keep the condo. We enjoyed it, the beach was wonderful, and it gave us a chance to relax. Unfortunately those are not raitonal reasons.

I will be closing on the sale of the condo by the end of the year. The monetary loss is going to hurt and hurt badly. But in the long run it was the only solution.

The next time I give advice about losing money on the sale of a home it will come from the voice of experience.