A friend called to vent about the state of her East of the River condominium association. After owning a unit there for fifteen years, she felt like she was drowning financially and personally. The water damage in her unit, the building's ever-growing repair needs, the bickering of the board, the slow or lack of sales, unpaid condo fees, an inadequate property management company, and generally tomfoolery were taking a toll.

Not helping the situation was that a condominium initially occupied by its owners was now overwhelmingly occupied by tenants - the owners moving on to other properties or buying single-family homes. As such, the association lost its FHA certification, which requires that 75% of the units in a condominium be owner-occupied. You lose your FHA certification, and your pool of eligible buyers immediately shrinks.

She went down the list of things she was doing. From running for the board (good) to requesting to see the association's finances (good), contacting the property management company (good), and seeking legal representation (also good).

Yet nothing was working. My friend was fighting a good fight, but against a brick wall, and in the meantime, the property value was declining while the repair needs were increasing.

She kept asking me what she should do. She was desperate for some plan or insight I could provide her, having owned and sold my East of the River condo in 2019, where I had been the HOA president for many years.

I gave her the only bit of advice I could give her.

Me: Sell it.

Her: I want to, but I don't want to sell it at a loss.

Me: Has this property gotten better or worse over the years?

Her: Worse.

Me: Have the owners become more or less involved in the association?

Her: Less.

Me: Has the property's maintenance and cleanliness gotten worse or better?

Her: Worse.

Me: Would you buy in this building?

Her: No.

There was a long pause. Then, a long sigh.

Then, I had to say what needed to be said. Sometimes, a loss is just a release. And the more time you spend hoping for a miracle, the miracle may just be cutting your losses. To stem the loss of your emotional and financial exposure. The "win" may be limiting your "loss."

And in real estate, that reality can be a tough sell.