Home Selling in 94591>Question Details

Camryn, Home Buyer in 94553

My house is paid off and in top cond. I want to scale down. What are my chances for a good return ? Meaning no short sale !

Asked by Camryn, 94553 Sat Sep 11, 2010

Almost everything is new in my 5 bedroom house but I would like to buy a small townhouse but not willing to loose that much money. What are my option? I'm not the youngest any longer and can not wait 5 years. How can I sell it a littler faster without loosing so much money ? Would appreciate an answer. Thank you !

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12
Camryn,
No one knows when the market will turn around. This would be a great market if you were trying to move into a more expensive home. People in your situation are the hardest hit. The blessing is your house is paid for and in great condition.
As Thom mentioned, interview a few agents and get a sense of where they feel your home will sell. If they can't support their price with recently sold comparables close by, be suspicious. Don't automatically select the agent with the highest price opinion. Some will over price a listing expecting that over time you will reduce it to where it needs to be to sell. This costs you time and money and you end up with less in the long run.
If the prices suggested won't accomplish your goals, either stay put and hope the market turns soon or consider renting the house as in income source until the market recovers. Of course be careful choosing a tenant, you want to preserve the great condition you have the home in.
1 vote Thank Flag Link Sat Sep 11, 2010
If your house is paid off--you have no mortgage--then there's no reason for a short sale. A short sale is when you sell your home for less than you owe. There are plenty of people today with mortgages who owe less than their homes are worth. So a short sale doesn't make sense. You just sell your home and--if you had a mortgage--you'd repay that and keep the rest.

In your case, you sell your home and keep it all. (Except for a real estate commission, if you use an agent, and possibly some small miscellaneous fees.)

As for getting "a good return"--that's a different question. Usually, people think of a "good return" as being the percentage difference between what you paid and what you get. Example: You paid $100,000 for your home. You sell for $150,000. You've "made" $50,000, or 50% on your investment. Now, it gets a lot more complicated--with taxes, with expenses, and the time period involved. If you made that 50% return on a house you bought 25 years ago, that'd be a 50% return divided by 25 (years)--or 2% a year.

Again, it's way more complicated than all that. But in today's market--and what you seem concerned about--is whether you'll walk away from closing with some money in your pocket. If your home is paid off, you certainly will.

A Realtor will be able to give you a pretty good idea of how much you'll receive. He or she will also give you some tips on selling quickly while getting the most for it. That may involve home staging or at least doing some repairs and clean-up. So: Interview 3 Realtors. Explain what your goal is. See what they suggest. Then choose the one that seems to make the most sense, and the one you relate to the best.

But, bottom line: You sound like you'll do fine.

Hope that helps.
1 vote Thank Flag Link Sat Sep 11, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
Contact
The market is not going to get any better in the near future in terms of price. You are not getting as much as you could of for your home as you would a few years ago, but this is also reflected in the price of the Townhouse that you will buy ( and the very low property taxes on it) Some realtors may tell you it is worth more than it is in order to get the listing. because that is what they think you want to hear . Get two or three opinons of value and look at what they do to market your home. A sign and entry into the MLS is not going to do the job. . You NEED agressive marketing .
0 votes Thank Flag Link Thu Oct 14, 2010
If the house is in good shape and you are able to stage your house at the right price, it will sell at the best price in this market! You will need to know what it is worth now in the condition it is in and if you do some repairs to it etc. what it will go for. Pass the word around to your friends and family that you are looking for a buyer . . . contact a few agents to give you different ideas and a price for your house. Good Luck!
Web Reference: http://merryserrano.org
0 votes Thank Flag Link Sat Sep 25, 2010
Camryn:

I’m always a bit baffled when I see a question such as yours, and I see it frequently. I completely understand your desire to get as much for your home as possible – I understand your situation and see many people in this same situation on a frequent basis.

However …

You will not be able to get more for your home than the market will bear.

No matter how much it has been renovated or how much you feel you need to get out of the sale, you will only be able to sell your home at current market value UNLESS you find someone with a lot of cash that is willing to pay OVER market value. The chances of that happening are very slim.

In addition, no amount of gimmicky marketing will increase your market price. Once you get an offer, it will be run through the lender’s appraiser. The bank will only lend to appraised value and, quite frankly, appraisals have been coming in low as of late.

Here is a post that may be helpful:

Yet ANOTHER Buyer Loses A Home To A Botched Appraisal (Buyers No Longer Setting Prices)
http://bit.ly/dyULBI

Here are some things to keep in mind:

1. Don’t try to “Test the Market.”

Some sellers, instead of setting their price based on current market values, price high based on what they need to get from their home. They believe that since they love their home, there must be someone out there who will visit, “sense the magic” and willingly pay a premium price. This logic is seriously flawed and, even if they DO get their asking price, it won’t appraise. Buyers are now looking for deals and won’t even visit homes priced too high.

Testing The Market NOT A Good Idea: Top 4 Reasons Explained
http://bit.ly/cmXUr0

2. Don’t Go On the Market Unprepared

Buyers want a good deal on a home that shows like a million bucks. They have a hard time seeing past clutter and if they believe your property is not in stellar condition, they’ll start discounting heavily. Homes that do sell for top dollar in the coming market will be those that are fixed up, staged and are move-in ready.

Here is a post that may be helpful:

How Does Your Listing Compare With a Banana?
http://bit.ly/6QL0Cw

3. Don’t Try This On Your Own

Use a seasoned Realtor who knows how to sell in a transitioning market. The coming season will resemble choppy seas and will not be the place for “casual or weekend sailors.” You need a Realtor who has successfully charted rough waters before and knows how to get you across the finish line: right side up and on the winning team!
.
0 votes Thank Flag Link Mon Sep 13, 2010
I usually say wait it out to clients in this market but if you dont have that option, you'll have to sell at market price. Is renting an option?

Kamal Randhawa
Broker
510-932-1066
0 votes Thank Flag Link Sun Sep 12, 2010
The best way to sell your home quickly is to price it correctly from the get go. The evidence proves it out in every market, and every price point. The sellers who price correctly right out of the gate (or make quick correction is they miss the mark) and expose their home properly to reach buyers and the agent that represent them, sell for more NOT less than the sellers who don't. The gravest mistake you can make is to overprice your home.

It sounds to me as though you are in a very good position - home paid off and in top condition. All you have to do is price it right and get ready for that simplified townhome living.

Good luck to you!
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sun Sep 12, 2010
Camryn
Your question is a little confusing. You might want to re-read it and re-post it.

Do you want to sell it now for top dollar?
See the link below. Home values have increased 5.5% compared to a year ago. That's good!
Inventory seems low (only 163 homes for sale, according to the link below).

So if you want to sell, have a couple of Realtors advise you on what you should do to make your home really shine in your market. Compare their proposal, and then take it from there.
0 votes Thank Flag Link Sun Sep 12, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Camryn,

Don’t let your memory of what your house was worth a few years ago stop you from moving forward with your life now. Your house is paid off so I am going to make the leaping assumption that you have lived there for quite some time. When you bought it, the value was a lot less than it is now. The value went way, way up over the years. More recently, the value has declined. All of us that have owned our houses for a long time wish that we could roll back the clock and recapture the value of our houses at the top of the recent peak of the market. If you have been in your home long enough so that it is worth more than you paid for it, you would not lose anything by selling it. Yes, there is a perception of loss because the house would sell now for less than a few years ago. Since you did not sell at that time, you had no gain. Your only loss selling now is a loss of something that you never really had.

You may be able to sell and buy something smaller and less expensive and invest the difference. If you have a financial advisor, get that person involved to help you make your decision.

By the way, the replacement property that you might buy has also gone down in value in the last few years. If it helps, think of that as a bargain for buying now.

John Juarez, Realtor
Seniors Real Estate Specialist
DRE #01223788
The Medford Team
Windermere Welcome Home
John@CarlMedford.com
510-673-0686
0 votes Thank Flag Link Sat Sep 11, 2010
Hey Camryn,

Let's see if we can get some more ideas rolling. Don hit the spot about short sale.

Like Thom says, interview some brokers/agents, and get a comparable market analysis from each; look online yourself to see what comparable houses in your area sold for. Now, remember, there will be closing costs, so have the agents also give you an idea of the closing statement. Transfer Taxes, Capital Gains Taxes (if any), agent commissions, advertisement costs, title/escrow costs, +. Many of these items are often paid by the seller. Then there will also be some costs associated with purchasing the new property.

If there's a capital gain, it may be worth it to you... if there isn't, but the net after sales sounds good to you, go for it.

If you're going to sell, and you want to sell, here's a word of advice: "be the buyer"; when you have the agent, work with them, go and physically look at other homes for sale that are comparable, see how they are priced, what condition they are in, and price your home desirably as if you were the buyer. Also, remember not to price based on the color of your walls. Hire a good photographer, and someone that can put a video together, that makes someone want to buy before they even see it.


Another idea: find a few local property managers, and inquire on the comparable rent for the house, and lease it out to someone, while you move and rent yourself. This way, you CAN hold on to the house, and see the return 5-10 years down the line. Just an idea.



--

Sincerely,

Mark D Fleysher, MBA, Broker, REALTOR
The Jack Conley Realty Group
C. 702-291-8186 F. 702-946-0843
0 votes Thank Flag Link Sat Sep 11, 2010
The house will sell fast if you price it just a little under market value.
0 votes Thank Flag Link Sat Sep 11, 2010
Camryn,

The speed at which your property sells is determined by the price at which you are willing to sell and hoe much a buyer is willing to pay. The final "value" of the property is NOT determined by; what you need; what you want; what you think; what your agent thinks; or what your neighbor thinks for example. It is decided by a willing buyer who has the $$ to buy and close the sale.

The best way to approach this situation is to interview 3 REALTORS and see what each says about the value of your home. They will provide COMPS for you which should show similar properties to yours that have sold in the past 5 months and within 1 mile of your house.

If you price it too high, you may get a very high offer, but if it doesn't appraise, you may as well not have any offer at all. It will be off the market while the appraisal is done and you could lose better / more realistic buyers.

Be carfeul, consult with a REALTOR and best of luck !

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END a Transaction in our Brokerage. There is NO benefit to the Seller or Buyer but only benefits the Agent. NEVER use your RE Agent / Broker as your Lender!
888-391-5245 Direct Cell
THOM@THOMCOLBY.COM
DRE# 01398570
0 votes Thank Flag Link Sat Sep 11, 2010
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