Mhresident, Home Seller in Mountain House, CA

I just recently purchased a home in Mountain House,CA at market corrected price ( sept 07), but want sell now!

Asked by Mhresident, Mountain House, CA Mon Dec 31, 2007

I just recently purchased a home in Mountain House,CA at market corrected price ( sept 07), but want sell now! As I am planning to move to Seattle, WA. Builder is still building this model and is still selling at the same price ( with few additional upgrades @ around 10K :-( ). But there are around 10 more houses for them to complete this community ( infact they are not planning to complete the entire community). I am ok to take a loss of around 10-20K , but not more than that. Should I have to wait for builder to complete their pending inventory? I am worried about 2 things, (1) 6% broker commission (2) Buyers closing cost. What should I do? Any advices please? I was working out for break-even ( includes 6% Broker commision Buyers closing cost 10K), but, it turns out to be 40K more than the current selling price.

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12
you're probably thinkng right now
"Why did i buy this house, i should have rented"
can't have your cake and eat it too
but

anyways

good luck
0 votes Thank Flag Link Mon Mar 31, 2008
Mhresident,

you will be in the red more than you will want to be.....the one thing that nobody mentioned, that I read, is to see about swapping the house.....you are in the perfect situation for such a transaction....they are not complicated and the greatest advantage is that you will remove the bottomfeeder 6% right out of the equation....realtors are not too keen on the idea, obviously.....but, it's your finances take heed.......it's a stretch and you have some time to shop the idea around....there is a website on the internet about it also with minimun fees if you are able to negotiate a swap....you can always try yourself with ads in local papers in the area you are moving to....best of wishes....
0 votes Thank Flag Link Sun Mar 30, 2008
Have you sold this already? I might be interested.
0 votes Thank Flag Link Thu Mar 27, 2008
This is a tough situation - and it's not uncommon.

1) Commission: There are a lot of discount agents out there that wil negotiate commission, but remember, you get what you pay for. Getting maximum value for your home is onviously critical....discount brokers may not do full scale marketing.

Plus, if someone is quick to give up THEIR paycheck, how quickly are they going to give up YOUR $$$ to the buyer's agent?

2) Buyers Closing Costs: A good agent should be able to negotiate the entire package that's in your best interest. When interviewing agents, ask for specific examples of their negotiating skills. Ask for references.

Another idea is to rent or lease your home until the market starts to recover. (Although no one knows how long this will be!) Talk to your CPA or attorney....there are advantages to owning investment property.

Talk to several local agents (in person!) about your situation and potentially listing your home. Ask for specific advice on what they would do n your situation. Ask for specific examples of what creative marketing strategies the agent will use to get your home sold.

Ultimately, choose a REALTOR that you are comfortable working with...one that you trust...and one with experience (as an investor and a Realtor!) to guide you through your situation.

Hang in there!!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Tue Jan 1, 2008
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Christina,

I will be moving to Seattle-Bellevue area. RE there looks to be doing well. My current home is 2 storied , not 1-storied.
0 votes Thank Flag Link Mon Dec 31, 2007
Have you had a chance to check to see how the housing market is where you are moving to? Not all areas are doing as bad as we are here. Can I ask you if you have a single story home out there? I know of an agent that has a buyer that is waiting for a particular single story model.

I am glad you are doing your research now to plan for this coming June/July. Hopefully the market continues to pick up like it did this month. The foreclosures/bank owned plus short sales are a huge majority of our market. It will be a lot easier to be competitive once they are gone.

Of the 87 for sale, REO-36, Short Sales-25, New Homes-7, Relocation company-1, Normal re-sale-18.
0 votes Thank Flag Link Mon Dec 31, 2007
I meant "aggresively pricing"
0 votes Thank Flag Link Mon Dec 31, 2007
Baggins,

I am all for aggressively the house now, but it will be difficult for me to take more than 20K loss. And general opinion is chances of only losing 20K is slim unless I got a smoking hot deal.
0 votes Thank Flag Link Mon Dec 31, 2007
This is just my opinion as an avid amateur, but with 43.5 months of inventory on the market and the builders still building I suggest that further price declines are likely on the way.

Seems you have two choices:

1) Put an agressively low price on the house now and take a loss now.
2) Rent out for the next few years at negative montly cash flow and hope that the area recovers.

Personally, I would dump now. I dont know Mountain House specifically , I do know that the entire general Tracey/Stockon/Modesto area is ground zero of overbuilding and falling prices, so it might take a quite while to recover. Given that most housing cycles are 5-10 years in length, and this was the biggest boom in US history, its likely to take some time. You might just end up selling at a loss a few years from now if you try to wait it out.
0 votes Thank Flag Link Mon Dec 31, 2007
Christina, I am NOT planning to sell the house till this June-July timeframe. But want to be prepared for that timeframe.
0 votes Thank Flag Link Mon Dec 31, 2007
Christina, this is a new home. I can give more info to your private email id.

Last year, while planing to buy this home, I did not have to intention in job change, but after purchasing this home , there was movement in Green card.

Now , I am in the dilemma of whether should I wait for my current house appreciation and push my job switch for few years, Or take the loss and make the move. Because, if the market is bad here, It will be bad there too, hence, I may loose some money here, but can get a very good deal in Seattle-Bellevue area + I can have my dream job in my dream company.

Of course, renting is one of the possibilities that I am looking into.
0 votes Thank Flag Link Mon Dec 31, 2007
Did you buy the one on Amor St? That is the only one on our mls that was sold in September 07. Here are some statistics you need to know that are important for you now that you are thinking about selling. Only 10 homes have sold on our MLS in Mountain House in the last six months. Good news is that 6 properties went pending in December. I am hopeing that is a good sign for buyer activity in the town. There are 87 properties for sale right now in Mtn House & with only 2 a month selling, we are looking at a 43.5 month absorbtion rate, that is a little over 3 1/2 years. Have you thought about renting it out when you leave the area, especially till the town gets some city services (ie...grocery store, gas station, etc...) I do work in the town & would love to help you if you are interested.
0 votes Thank Flag Link Mon Dec 31, 2007
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