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Peter, Home Seller in Avon Lake, OH

I would like to sell my house asap. I have only lived in it for a year and thus equity is limited. I live

Asked by Peter, Avon Lake, OH Sun Feb 10, 2008

in a condo in a development that is not finished and will be competing with the builder. I am debating listing with NextHome for $995 and hoping that the buyer does not have an agent. I can not afford 6% realtor fees and still have money to put towards a new house. I have to imagine that I am not the only one in this situation. Any advise?

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Peter, unfortunately, if there are comparable homes and more importantly NEW homes being built for less than you are asking for yours, which ones do you think will sell first? Put yourself in your buyer's shoes. Which house would YOU buy. It looks as if you are going to have to reach into your pocket to make up the loss. It's sad, but you are not the only person who is in that position.
1 vote Thank Flag Link Mon Feb 11, 2008
Amanda I am just looking out for you.... you might want to change your wording where you said that they took the $995 and have no incentive to sell that is a breach of the Realtor Code of Ethics. Don't want to see you get fined.
1 vote Thank Flag Link Sun Feb 10, 2008
The only relevant part of your post with regard to your sale is "I would like to sell my house asap." If you want to sell your house ASAP list it with a professional MARKETER who knows all the other agents in your area, has marketed a home many times before and pay them. I most irrelevant part of your post, to a buyer especially, is how much you can afford to pay and still have money to put towards a new house. Let me ask you a question: If a buyer came to you and said "I'd like to buy your house but I only have X amount of money, can you please cut 50,000 off your price because I can't afford to pay any more towards this house" what would you do?
1 vote Thank Flag Link Sun Feb 10, 2008
Do you have a relationship with a Real Estate Consultant at this time? If not, go ahead and interview one to three now and ask them to provide you with a written recommendation. You do have options. Not all agents are willing to work out fee based services and flexible commission structures. Some are. Any recommendations should include market opportunities, comparable sales, other condos for sale, trends, and net proceed projections. Subject to future plans and opportunities, you could consider a short sale. Don't just assume that the lowest commission company is your best option because your money is tight. That is very limiting.

If you already have a relationship and you have a potential game plan with option A, B, or C, Then you are far farther ahead of the game than most consumers today.
Web Reference: http://www.druryrealty.com
0 votes Thank Flag Link Fri Dec 11, 2009
Peter,
You are right you have to stick it out. I have read your details. The market will not support a price that will have you in a positive position for the short time you have been in the home. Hold tight. By chance are you in Aquamarine or Wildberry?
0 votes Thank Flag Link Mon Nov 30, 2009
Well, it has been 2 months and I appreciate all of your responses. Most of all, Debbie and Keith. I think the only solution here is to suck it up and sell later. Dont anybody get me wrong.... I love my condo. It is awesome. There are other circumstances that make me want to move. Gas prices and time wasted in commuting to work, Environmental/ chemical hazards that I was not aware of when I bought, and throwing 100's of dollars a year away on a pointless HOA.

The mortgage payment is not an issue. It is very affordable. I have painted and made it "my own" I just dont see the type of appreciation I once thought was going to be there. So it seems pointless to "rent" this condo and deal with all of the BS... I should just sell it but I can't. BELIEVE ME.. . if there is one thing i have learned while looking and posting on trulia....when the time is right I will price this property correctly and get rid of it.

Debbie is right... .I will never make this mistake again.
0 votes Thank Flag Link Thu May 1, 2008
You are absolutely right, there are many people in the same boat. Anytime you are selling in a development where new construction is still going on makes it very challenging unless your price is very competitive. You may find that you will have to bite the bullet and hire a full time realtor to get the job done. You say you can not afford 6% - can you afford to stay there? If you do not have to sell then I would suggest staying and building up some equity. If you hire a company for say 1000 and another agent sells it from another company, you will have saved yourself only approximately $2000 dollars, and you will have to do alot of the work yourself. Do the math, you will almost be paying 6% regardless....
0 votes Thank Flag Link Wed Apr 30, 2008
You'll do much better with a professional to help.
0 votes Thank Flag Link Wed Apr 30, 2008
Thank you for your quick response... However I believe most are missing the point. While moving may not be dire at this point, It will be shortly. I am trying to avoid being in a position to HAVE to sell. I would like to sell on my terms and get into some place that is more manageable.

So, to clarify: I will tell you exactly what the problem is. I bought for 126000 and owe 124000. If i sell for 129000 I will have enough to pay off the loan, pay the realtor and maybe some closing costs. However, this development is still under construction so the builder is selling condos for anywhere from 117000 to 138000 and the unit next door is foreclosed and is up for 81000. So, what are my chances in a market like that. Not to good... thats what i think. Loosing money seems like my only option.

Now, in a situation like this some might say sit tight if you can and if you cant then sell and loose money. What is the alternative. I can not be the only one in this situation....

I would sell for 125000 and not make any money but then what about the fees... buyers agent, my agent, settlement statement, etc. all expenses that now have to be built in. What gives. we dont exactly have a sellers market here.

-Peter
0 votes Thank Flag Link Mon Feb 11, 2008
Peter
Thank you for your question.
I am not in your area, so I do not know your market. (that is a disclaimer)
Let me rephrase your question: I need to sell and my not net enough from the sale to purchase a new home. What are my options?

Peter, you do have a couple of ways to go. My main question for you, if I were your Realtor, is: WHY? why is moving at this time so important? What are the drawbacks if you are unable to net your desired amount? What happens if you simply cannot move?

The reason that people move to accomplish something. People do not sell inorder for us to earn a commission. They have bigger goals in mind. So, why are you moving?

Let us assume that you need to move. Need to move means that you do not have an alternative. What's an alternative?
1. Stay where you area
2. Rent it out (great potential investment/tax benefits)
3. Sell it for a short pay (need to prove hardship)

Assuming that it is not a NEED, but a PREFERENCE.
1. If your goal is to sell for the most net profit, where I work this is what i would tell you: Price at market price (meaning sales price, not "negotiating price"
2. Prepare the property for market (that means that if I take points off for peeling paint, no lockbox, no internet photos, etc.) that means that we need to make adjustments in the price or other incentives
3. You need to know that 90% of the time that the buyer that first sees your home is brought by a Realtor.
That means that the buyer, AND their REALTOR, need to think the property is a "good deal" enough to look at it.
4. With the marketing and exposure I do, I expect 10 showings or two offer in the first 14 days of market time. If that does not happen, we adjust the price.

So, why is this important to you?
When you sell without professional representation (which you certainly may be able to accomplish), bear these statistics in mind:
1. You are excluding 90% of the buyers
2. The average owner selling on their own sells for 17% less than a Realtor (NAR 2007 Survey)
3. So I am not saying you cannot sell on your own. I am not saying it will not work out. But, what if it does not?

If you do sell, and need to sell, but end up not having enough at closing, you are looking at a short sale.
Please read my blogs on short pays and foreclosures.
http://activerain.com/blogsview/125091/How-The-Foreclosure-Process
0 votes Thank Flag Link Sun Feb 10, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Peter,
The $995 might be money out the window and time lost if you don't get your condo sold. Less than 5% sell without a Realtor. You might be one of the lucky ones, but the olds are against you.

The 5% are people who have the time and creative skills to market the home. If you work full time, you will have another full time job selling your home.

Commission is not set at 6%. It's negotiable. Interview agents. Look for someone knowledgeable, eager, track record of success in that condo complex... They will have a list of potential buyers for your unit since they just sold one just like yours. The ones who lost out will be still looking.

Also, if you use the same Realtor to find your new home, they might cut you a break on the listing commission.

Think smart. Don't look at price. Look at what you are paying for. The skills and expertise to sell your home fast and at top dollar are valuble. Would you trust a doctor, mechanic, plummer, electrician to get results by only doing small fraction of the job and they leave you to do the rest?

You know the saying,"YOU GET WHAT YOU PAY FOR".
0 votes Thank Flag Link Sun Feb 10, 2008
I'm a Realtor. You may be mistaken. I'm certain I can sell faster, for 4-10% more. I am full time, resourseful and trained. There are great Realtors in your area.
0 votes Thank Flag Link Sun Feb 10, 2008
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