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Heartbroken, Home Seller in Florida

We have about $150,000 in equity in our home and are having no problems paying for it but

Asked by Heartbroken, Florida Thu Jan 22, 2009

we are moving because of a job and there is a home that is in pre foreclosure by us, and the price of this home has just dropped alot. The new low price its currently at, will force us to loose at lease 60,000 in equity because that home will be the new comparative the appraiser will use. We were also told appraisers do not often use foreclosures to do comparatives but how do we know this.

We were thinking about an auction so we can get out fast and still keep our equity but we were told that auctions are not for our situation. Please, if anyone has an suggestion?
Thank you.

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Answers

9
Heartbroken,
I'm a little nervous for you for two reasons; 1) you seem to be panicking and it may lead to hasty decisions and 2) Auctioning your home. If you do choose to auction you will be charged hefty fees up front AND there is no guarantee the home will sell. If it does it will be for far less than what you think!!
You are not in as horrible situation as you may think. The home that dropped in price (i'm guessing) is a short sale and will take months to finally sell. There is no saying the bank woulf even take that price. You have equity in your home and can sell quickly. There are buyers out there who do not want to be mixed up in these short sales. They take a long time to close and there are NO guarantees.
If you'd like to discuss further, please call me directly at (813) 849-8554. Or you can email me at Mark@Homes4UinTampa.com
Mark
Web Reference: http://Homes4UinTampa.com
1 vote Thank Flag Link Thu Jan 22, 2009
If there is not a pattern of foreclosures in your neighborhood/subdivision then the appraiser will probably exclude that property because it is abnormal. The same would go if was a property that sold for an unusually high price. Contact a reliable agent in your area who would be willing to discuss the options that you might have before you. I would not make a hasty decision without getting good advice.
1 vote Thank Flag Link Thu Jan 22, 2009
Have you had any offers, or have you already sold your property?
0 votes Thank Flag Link Fri Feb 6, 2009
Your other options could be:

1. Lease with option to buy
2. Seller Financing.

Be careful on both. #1 is less risky.
0 votes Thank Flag Link Thu Jan 22, 2009
Hire an aggressive agent, who is familiar with your area, who will price your home to get an offer in 30 days or less. That might mean pricing slightly below the last sale in community.

The real tragedy will be if a newer, lower sale costs you another 20,000 in equity.
0 votes Thank Flag Link Thu Jan 22, 2009
I agree that there are times when there are not enough comparables to get value without the possibility of using distressed sales in the analysis. Most homes of this nature are filed in the County Assessors office as unqualified transactions or in MLS as a known short sale and should be noted on an appraisal that this particular sale was not standard in the market and adjustments should be made. While I agree that before putting your home on the market, you need to contact a qualified Realtor, it also would not hurt you to have the property appraised by a professional appraiser. Typically the buyer pays for the appraisal but you can request an appraisal to help you assess what price to ask for the home or whether leasing it would be a better option. Banks tend not to lend money without an appraisal so the estimate of value is something you can really hang your hat on and know that if you use this as your basis for setting your price, chances are you will be right in line with what the market will bear.
0 votes Thank Flag Link Thu Jan 22, 2009
Have a real estate agent give a value of your home, averages of sales, and time on market. You will also want to check to see if leasing is an option. If you have that much equity, then do you have enough room to lease your property and then lease for a short term were you are going? Next, don't do the mistake many homeowners do which is price their home with homes that are in foreclosure and then you have lost all your equity. Be realistic in pricing don't over price but you may not have to lose as much. Also while you might lose $60,000 of your equity you may be able to recapture it in your new city by taking your time and finding that really great deal that will give you equity back over the next five years! Give me a call if I may help you further.
0 votes Thank Flag Link Thu Jan 22, 2009
Heartbroken,

You are simply in need of a qualified Realtor. Your situation is so common. Realtors deal with it everyday! Let a professional help you - now- today, before it gets worse. Enjoy your life and family and new job and do not waste it with unnecessary worry.

I would be happy to assist you over the phone with a clear strategy today!

Sincerely,

Chris Chandler, Realtor
(318)272-1326
0 votes Thank Flag Link Thu Jan 22, 2009
I'm sorry to hear about your situation. Unfortunately, it is all too common. What I have heard lately from appraisers is that they sometimes have to count "distressed" sales to get enough comps to form an opinion. The appraiser can make adjustments, but the distressed sales can affect your appraised value.

I don't think that an auction would result in the highest net value for you. People go to auctions so they can get a steal, not to pay market prices. If you need to sell quickly I hope that you will get your home on the market as soon as possible. The average days on market has continued to increase. You do have the advantage of not being a short sale. I am finding that more and more buyers are shying away from short sales because of the amount of time they can take to close.

Good luck!

Trey Miller
Prudential Tropical Realty
Web Reference: http://www.TampaTrey.com
0 votes Thank Flag Link Thu Jan 22, 2009
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