During the pandemic housing boom, bidding wars and over-asking-price offers were common. But some buyers now face selling at a loss due to job changes or financial hardships. Factors like low equity, high selling costs, and regional housing market trends can contribute to selling below the purchase price.

Selling your home can result in a loss, especially if you haven’t built much equity or if your area’s housing market has slowed. Costs like agent commissions, closing costs, repairs, and prep work can eat into any potential profit. Understanding the financial implications of selling is crucial before making a decision.

If you’re selling your home at a loss, consider options like holding onto the property to build equity, becoming a landlord, negotiating a short sale, or covering the gap at closing. Strategic decisions can help minimize losses and put you in a better financial position for the future.

Selling a home for less than you paid may not be tax-deductible unless it was used as a rental or business property. Consult a tax professional for guidance on how to handle any financial losses from selling your primary residence. Renting out your home could also be a viable option to avoid selling at a loss, but it comes with its own set of responsibilities and risks.

Read more at Yahoo Finance: Selling your home at a loss? Everything you need to know before you list.