Property ownership, whether for investment or rental purposes are always meant for the long-term
investment benefits. But always, things change so rapidly in our lives, we simply have had to see a big
decision about our brick and mortar investments. Maybe a looming upgrade is required or changes in a job
position/location happened. There are several reasons why homeowners may consider before selling homes
at a loss to companies like Houston Capital Home Buyers.
Especially sellers who need some cash!
So then, why should you never sell your precious home at a discount?
1). Firstly, from a tax perspective. Certain tax regulators do not consider losses from selling a personal
residence. Losses can only be claimed for sale if the property is used for business or investment.
2). The possibilities of surges in real estate value. In certain cities where home prices are of little value. A
major developmental change could occur, which helps to push prices a little higher. A tech hub, like Silicon
Valley, could spring up around town, with newer and well-paid employees. They then have the financial
muscle to buy real estate listing at better prices. But only if you show some restraint.
3). Effects on your credit score. Selling a house at a discount has a direct negative effect on your credit
score. A gloomy credit score places you on the naughty list of most lenders, according to Bradley Graham
Senior director of scores product management at FICO.
4). Get proper value for money. Truly everything worth doing is worth doing well. Maybe the current value of
your real estate is the highest it would ever be. Maybe someday a tsunami, earthquake or a giant whale
would descend menacingly on your property and bring it’s value to shreds. Just maybe….
5). Justify the reason for letting go of a prized possession. Some houses are an inheritance from parents,
sometimes co-owned by several siblings or family members. The decision to sell a possession like this, with
an attendant loss in revenue could affect the harmony of your family. Human beings tend to rationalize
decisions based on the outcome. A discount sale on an important property could put your position in
If there isn’t an immediate credit demand on you. And you have the right attitude to real estate investment.
Certain Realtors encourage Rental property investment as an alternative to discount sale. The long-term
investment benefits are more attractive and it affords a break till some better offer is tabled.
Finally, differences between certain locations have a play on market demand. In some select areas,
prospective buyers even with high salaries, often abandon equity and continue to rent. But in other cities,
first-time buyers have enough money to buy even over-valued property in the lower swath.
The well located real estate is a unique asset to owners. Since economy variations tend to decide value and
market activity, it is sometimes advised that selling homes be done at profitable terms. Given the magnitude
of a potential home sale decision, owners must consult with a knowledgeable real estate agent before arriving
at a decision.