[retiredguy123]

Originally Posted by CoachKandSportsguy

So I don't get some responses, the house appreciation without the bond is now greater than the bond, and some say that I won't get the money back if I pay it off? with that logic, no matter how high the house value gains, you will never get the bond paid off back. . .

So for simplicity, house was purchased for $350,000 two years ago, the bond is $30,000 and the current house price is $380,000. Lets use another $15,000 price appreciation for the next year. I list the house for 399,000 sell for 395,000, gain is $45,000 and the bond paid off was $30,000. so you are still saying that I am not getting my bond money back still?

The difference is that I don't have to pay for rented money, the interest of which may or may not be deductible in an audit, but only 20% deductible, so I am still paying rental fee of 80% of the interest payment. . . versus the risk of losing income, assets, whatever, and not being able to pay the bond. . .

I think there are alot of old realtor tales out there. . .

So where is the logic wrong that I am not getting my bond money back?

sportsguy

The house appreciation is irrelevant to the bond calculation. Assume you have two equal houses for sale, one with a $30K bond and one with no bond. A potential buyer is not willing to pay $30K more for the house with no bond. That is just the way the market works. So, the seller who paid off the bond is at a disadvantage when selling their house because they will not recover the money they spent to pay off the bond. My opinion and I think most real estate agents will tell you the same thing. You can price a house anyway you want, but that doesn't mean you will get your asking price.