Thanks for the update Mt.... congrats on the offers!

Shannon,
Thanks for the feedback. I wanted to share a little story with you.

The house was de-cluttered, de-personalized and staged to the satisfaction of my realtor, as well as several others who toured during two separate broker open's. The photos had all been re-taken, after some professional advice from another agent.

Once it was vacant, we had two showings, both of which netted offers. We are currently under contract, sale pending.

So I have one thing to say at this point: Staging might be great in certain situations, but maybe in a smaller/older house, vacant is the way to go. It worked for me!

Mt, thanks for the link.

You say your realtor has done "okay" with traditional marketing but is not up to date with the "new" ways things are done. In my opinion, to be successful, you must always dedicate yourself to learning new tools of the trade. This may be part (possibly a big part) of the problem. Most people these days don't flip through their local newspapers, they turn to the internet. You mention you are listing on Craigslist every few days, why is your realtor not doing this for you? Are you posting photos there as well?

As a Real Estate Stager and Photographer I will give you a few freebies I noticed looking over the listing that you may want to try to improve:

1. You mentioned the home being vacant, does this mean furniture/accessory-wise as well? Vacant homes (void of furniture & accessories) do not show well.

2. If your home is now vacant, you should now take the opportunity to paint and neutralize the home. I noticed a few things:

- KITCHEN: That yellow in the kitchen needs to go! Try a more neutral color that will compliment the cabinets, counters and floors. Add some hardware to the cabinets/drawers in the kitchen. Possibly a simple black design to compliment the counters. Get rid of the sponge, calendar, plants, stuff on top of the cabinets... Also try taking the photo from the doorway show in the photo instead - will that provide a better view of the overall kitchen?
- DINING ROOM: At the very least add some simple artwork to the wall.
- BABY ROOM: Remove all decorations, paint a neutral color. (If potential buyers don't have a baby, or small child, this is work in their eyes that they will have to do)
- BEDROOM: Can the bed be moved to another wall? If not, remove the side dressers. All the furniture makes the room look very small.
- OUTSIDE: Neutralize that bright blue on the front porch! Remove planters or fill them with flowers. Maybe add an outdoor rug and table and chairs to the back patio. Remove/replace any unsightly fencing, outdoor odd and ends...

WOW, that was a lot of free information that I usually give through paid consultations! I guess I got on a roll.

I hope this helps, and good luck!

I agree with Shannon about web presence. It is ESSENTIAL in today's market to have a web presence. If nothing else, it just provides credibility. However, I will also say, that if there are buyers out there looking, if it's on the MLS, they would still be able to find it if they have an agent.

http://listings.listhub.net/pages/DAARMN/143471/?channel=trulia

I think my realtor has done okay with the "traditional" marketing of my home, he's just a little unfamiliar with the "new" things like using more advanced web marketing. He also tells me that he speaks to other agents who are holding open houses, and they are also getting zero traffic. The market here is terrible.

Hi Mt...

Sorry to hear about your situation. From reading your post, a few things/questions come to my mind.

First, you said you can't rent out this property because of a law stating the 300ft rule. Have your contacted your town about this law to explain your situation, and try to work with them on it? Renting may be a good source of income to pay the mortgage until it's sold, but you'll still have the home on the market, therefore it will need to remain in pristine shape (hard to do when you have tenants living in it).

Second, you said you had numerous open houses that netted no traffic. This sounds odd. Are you sure your realtor is marketing your home effectively? That's the problem with "friend-of-a-friend" business relationships. Review your homes marketing strategy and scrutinize it!

Third, you said you staged and decluttered. Did you do this work yourself or did you have a professional stager assist you with this process? Did you also get a professional photographer to take the listing/marketing photos? Your homes presence on the web is extremely important as this is what will get potential buyers into your home! Staging will make the potential buyers feel comfortable in the home and be able to view it with an open mind, visioning themselves living there. There could be negative factors effecting the impressions people are getting with your home, something your realtor/friend may be too shy/uncomfortable telling you.

If you would like additional information, please feel free to contact me. Can you share a link to the online listing of your home?

You do not want to borrow to pay the mortgage on an upsidedown mortgage--that's robbing Peter to Pay Paul and will only make your situation worse. See a bankruptcy/financial-advisor attorney. I'm not suggesting bankruptcy. He/she may be able to advise you on what options are realistically available and how to restructure your finances. The earlier, the better.

My realtor brought over some comparables a few weeks ago... 4 houses in the area sold in the last month, 3 of them were between $50K & $75K, those were 2 bed/1 bath. My house is listed in the low $110's, and is a 3 bed/2 bath. The 4th house on that list sold for much more (around $140K I think) and was a 3 bed, but it had a "lake view" (which generates big bucks around here), however it had been on the market for over a year and was originally listed for close to $200K. See what I mean about comparables are difficult? There just aren't many 3bd/2ba homes in the area, so how can I compare sale prices?

Another thing-the local banks around here ARE lending. They are not subject to the strict policies of the big national banks. But the media is just making it worse by saying how hard it is to get a loan. I honestly don't think sellers are even trying!

And a third thing-there are several down payment assist programs in the area (grant funds for $2000-$4000), some for certain neighborhoods (mine included), some for employees of certain local employers, some income-based and some not, and some for certain persons (persons of color). I know about them, but how do I encourage potential buyers to apply for them?

Sheesh, you are in a tough situation. The fact is, if your house is priced right and there are buyers out there for this type of property, you should be generating offers and showings. Sometimes, if your house has been on the market a LONG time and has been at several different price points, it makes it less desirable. Don't ask me why, it's all psychological. At this point, I think it might be valuable to see what other homes in your area have sold AT ALL! If there's nothing going on around you for properties available, it will tell you that your market just isn't generating any activity. Not surprising since getting a mortgage was really tough (continues to be stringent standards) out there. From there, you may just have to bite the bullet and leave it on the market or discuss taking it off until after the holidays. Good luck!

Hi Empty,
You should have sold the old house, before buying the new one. Good Luck

(Question, continued-ran our of space above)
Plusses (things in my control): We de-cluttered and fixed up, prior to listing. I staged and re-photographed the home, at the advice of a third-party with a real estate background. We have a “unique” home in the neighborhood, it’s been updated more than most, it has a 2 car garage (most have none), it has 2 bathrooms (most have 1). We are listed with a national realty company, with exposure on both local and national web sites, as well as the local MLS, and good local newspaper coverage. I post my home on Craigslist every couple of days too. I’m listed on both Trulia and Zillow.

Minuses (things I can not change): The neighborhood has a “stigma” of being undesirable (low income rentals, crime, etc.), but is really variable block to block. I moved here from out of state and didn’t know (or care) about local attitudes, and never knew that the name of the neighborhood would have such an impact on people’s opinions. The city has a weird rental ordinance forbidding any new rental licenses on a property within 300 feet of another licensed rental (it’s about 3 miles from a college area, the city thinks they’re preventing rowdy college parties or something), and of course there are licensed rentals on my block. Homes that are selling in the area are all “fixer-uppers”, being sold for a bargain because they need a ton of work. This is driving the comparables in the area way down. My realtor claims that it’s just the economy. He personally has only 2 buying clients right now, and they are both looking in a price range about half of what mine is listed for. My realtor is also somewhat new in the business (less than 5 years), but he has lived in the area his whole life (I chose him because he is a relative of a co-worker).

So now what? First and foremost, I am not behind on my payments. I have a lot of credit available (and almost no unsecured debt), so I could probably get by for a while on borrowed money (not that I want to). I am just looking for options and ideas.

Short sale? I can’t exactly claim “hardship” and try a short-sale because I chose to build a new house in a weak economy. Can I list it for less than what it’s worth and make up the difference in cash (savings, gifts, etc.)? Is that even considered a short sale? I don’t qualify for any of the government “rescue” programs because I own another home (trust me, I’ve searched).

Deed in lieu of foreclosure? I’ve gotten over the fact that I won’t make any money on this house. I just want to be done with it. However, I don’t have any idea how to proceed with such a transaction.

Rental? I can’t legally rent it, and even if I could get a license, I have a 15 year mortgage so I would have to charge $1100 for rent to cover my payments, when most homes in the area of similar size would rent for about $700-$800. What are the ramifications of renting without a license? Landlord jail? Fine me for money I don’t have?

New Realtor? My listing expires in mid-December. Do I shop for a new realtor? How do I get a “good” one? Where can I get data on realtors who have worked the area for a long time and use the most advanced marketing strategies (i.e. internet, my current realtor seems to be somewhat technology-impaired)?

We Buy Houses? Do I try one of these slippery-sounding “we buy houses” organizations (most won’t talk to me until my listing expires)?

Owner Financing? That seems to be all the rage lately, but it seems very risky. I have a “non-assumable” mortgage, can I even consider owner financing? What kind of person wants to assume my “expensive” 15 year mortgage anyway?

What are my options? I have a little bit of savings (about 4 months worth of mortgage payments for the “old” house), what do I do when that runs out? I have excellent credit and would hate to ruin it.