Home Selling in 34286>Question Details

John, Home Seller in North Port, FL

How do you sell a house for more than it's worth? We need to sell in order to move, because my husband

Asked by John, North Port, FL Wed May 14, 2008

recieved a full-ride scholarship to an out-of-state graduate program, but the value of our home has dropped because the market here is so flooded with homes. How can we get out of our home when newer ones are selling for $50k less than we need to ask?

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15
Well, is your home better than the others? Does it have something more to offer that others do not? Highlight these positives. In addition, a small investment of staging could bring you more of a return. I've seen it in our market, and it worked. The sellers got more than their asking price!

It's tough times in some markets and innovative thinkers get ahead.
1 vote Thank Flag Link Wed Jun 11, 2008
First of all, I donot agree with realtors suggesting a short sale. c'mon. thinking logically who will take the hit? BANK. and who pays for it ? rest of the PEOPLE ? is it fair? look at what hapened to bair and sterns ..the fed bailed them out...but in reality the 30billion is paid for by the taxes which we pay , including normal people who didnt have anything to do with mortgage mess!!

its like everything else...its RISK we take and understand the implications ..NOT pass it to rest of the people... in good times if the house now sold for a million , would u share ur profits? with neighbors? or the bank?
1 vote Thank Flag Link Fri May 23, 2008
Reduce the home price and try to do a short sale. Sounds like you have an good hardship case, to begin with. It will take some time, persistance and patience. It may be your only way out unless you have the money to bring to the table for the difference of what you owe. Have you investigated anything with your lender or asked for their Short Sale Package? We sometimes us a 3rd party to act on behalf of the Realtor and Seller. They charge a fee which is usually paid by the Lender. Good Luck!
Jim Soda 941-809-7759
JImSoda.com
Prudential Palms Realty
Sarasota-Lakewood Ranch-Longboat Key
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Mon Aug 25, 2008
John,

Before you decide to do something drastic like walk away or do a "short sale" our recommendation is to be sure you understand the total impact of doing this. Be in touch with an attorney or financial advisor for their council.

We are seeing many people going in this direction without all the information they should have.

Good luck,

The "Eckler Team"
0 votes Thank Flag Link Mon Aug 25, 2008
It looks like the only option would be to do a short sale, which would impact your credit. Have you had a Realtor do a CMA? We live and work in North Port and be glad to discuss your property with you.

Shannon Moore, Realtor
Re/Max Anchor
North Port, FL
941-276-8142
twomoores19@comcast.net
0 votes Thank Flag Link Sun Jun 29, 2008
John,

Some people in your situation are experiencing some relief by electing to do a "lease option" which puts the renter in a contract to purchase the property and also generates rental income for you.

The "Eckler Team"
0 votes Thank Flag Link Sun Jun 29, 2008
You don't. Ask yourself, would you pay more for something then it is worth? We both know the answer to that question. Even if you found a buyer who was uninformed, they will never get the financing.

The best way to structure this sale would be to offer to sell with a very low downpayment with you holding the mortgage. This could be risky if you don't do your homework and make sure that the buyer is a solid citizen with good credit. There are some good, credit worthy buyers, who may have a good job but have not work at it long enough to be able to save enough for a downpayment. This is who you should be looking for. It may also mean that you may have to rent instead of buying.

Look at the math. If the value of your house is now $250,000 (you didn't indicate the value) and a buyer could put up $10,000 and has a few thousand for closing costs, at 6% interest you would collect $1,438.92 a month on a 30 year payout. With a 5 year ballon (hopefully things will be much better by then!) the buyer will need to refinance and pay you about $223,330. Add that to the $10,000 downpayment and $86,335 that you have received in monthly payments and it comes to $319,665. You could also work the numbers for a 3 year ballon and see how that looks.

Good luck.
0 votes Thank Flag Link Wed Jun 11, 2008
The reality is you probably can't. If you were the only home on the market in your area, then you might get lucky & find a buyer that is ready, able & willing to offer you a price over the true market value. However, most buyers do comparison shop & when & if you find a buyer & they go to apply for a mortgage, most lenders will not approve a loan on a home that it worth less than what the buyers are paying for it. My advice to you would be to consider renting it until your husband finishes school. By then hopefully the market will imporve & you won't lose money on the sale.
0 votes Thank Flag Link Wed Jun 11, 2008
OK, well,, It's not very honest but the following has been known to work.

Step 1 - Find an Agent who a) has the ability to bring buyers from outside the area (who are unfamiliar with local prices), and b) is willing to be creative with the truth.

Step 2 - Istrucct the agent to'pitch' persons viewing the property in the following manor. "The vendors are keen to sell due to financial problems and have prices the property very reasonably... This really is a great deal... there has been allot of interest and they have received an offer of just under the asking price which they are currently concidering - but if you can match the asking price - I think they will accept.

This acheives the following - firstly, you are appealing to the buyers greed, they think they are getting a good deal, being business savvy and are in a position to exploit your hardship. Secondly, you have created a sence of urgency, the buyer will not have time to talk to lots of other agents and view comparible properties. Lastly, you are forcing a quick decition, so they don't have the time to properly analise the proposition!

Heres the tick - YOU HAVE GREATLY EXAGERATED THE VALUE OF YOUR PROPERTY IN THE ASKING PRICE. You've now sucsessfuly taken some poor young couple for a learge amount of money - but if you can still sleep at night in the knoledge of that - it could be the way out of your situation.
0 votes Thank Flag Link Wed Jun 11, 2008
You should investigate with your Lender, If you can qualify financially qualify for a "SHORT SALE." We have been sucessful in Short Sales with several of our listings, however, they are time consuming and need patience. You as the borrower needto be diligent with your Lender in the pursuit of information and choose a Realtor that has experience.
Jim Soda, 941-809-7759
jim@jimsoda.com
Prudential Palms Realty
Web Reference: http://www.JimSoda.com
0 votes Thank Flag Link Mon Jun 2, 2008
Hi John,

The hard truth is that you are not going to sell it for more than it's worth in this market unless someone just loves it so much they have to have it no matter what. The best bet might be to do a long term lease on it. At least you would have some cash flow and can get by until the market turns around.

Sincerely,

Sheri Dettman
0 votes Thank Flag Link Fri May 23, 2008
John,
As we think you are seeing.....this is not the optimal time to put a home on the market. The alternatives are not good if you remain commited to selling. There are too many new homes priced very low to be able to compete with in our location. To stand a chance at selling you will need to price it aggressively and bring it down to where the newer homes are listed.

You could also try to rent it but the rental market is flooded and competitive as well. Any way you slice it, it looks like a loosing cause.

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Fri May 23, 2008
I really feel bad for people like you who are caught in this market and have to sell for a reason other than not being able to flip the property for a profit. You should definitely talk to your mortgage lender and see whether they can refinance the home to lower your monthly payments and give you an opportunity to rent the property while your husband is in graduate school and cover those payments. The other option is of course to sell it and absorb the loss. Have you had your house appraised? It's not because your house is older that it is worth less than newer ones. If you need to sell it, make sure that it looks stunning. Get rid of all the junk. Paint it, give it great curb appeal, fix everything that needs to be fixed. All those little things can increase substantially the value of your home.
0 votes Thank Flag Link Wed May 14, 2008
John
Welcome to the real estate market. The fact is that in a buyer's market, there are more homes than buyers, so buyers determine what Fair Market Value (FMV) is for a property. Even if you could find a buyer who would pay more than FMV, the financing aspect would kick in. The lender's appraiser would have to appraise the property at more than FMV, and if that did not happen, then the buyer would need to come up with cash to make up the difference.

Let me ask, honestly, does it make sense for a buyer to pay $50K more than FMV, or for an appraiser to value a property at $50K more than FMV? Would YOU pay more for a property than it is worth?

So you have a couple options:
1. don't move.
2. Rent it out - talk with a CPA regarding the tax consequences..
3. Try to negotiate a short sale, although trying to prove hardship is probably not going to be possible.

good luck.
0 votes Thank Flag Link Wed May 14, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Your home would need to appraise for more than the asking price. You may need to take the loss or apply for a short-sale. Call an attorney & discuss a short-sale or what option would be best for you.
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Wed May 14, 2008
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