Diana, Both Buyer and Seller in Florissant, MO

Should we take advantage of the rates & unload with only a 20k loss now or wait. Need to move in 12 mos.

Asked by Diana, Florissant, MO Sat Apr 4, 2009

ready to purchase w/ 20% down. Excellent credit.
Should we take advantage of the the rates & unload or wait for the market to change?

3bdr, 2bth, Good condition, New htr,ac,microwave, floors, paint throughout, & much more. Backs to common ground, pool, young neighborhood

Help the community by answering this question:


First, you need to tour the competition in your immediate area that is equivalent to you - similar number of bedrooms, bathrooms, elementary school, subdivision, basement, garage, etc. Know what they are going for and their condition, updates, amenities, etc - yes, they are all your competition, but we can't address all of them, so lets address those in your immediate area.

Next take a serious look at your home and compare it realistically to what you have just seen. The realtor you have chosen (and who has helped you look at the competition) can help, but if you have a trusted friend, the one who you really trust to tell to give you the honest truth even when you don't want to hear it - you know the one who will tell you when that dress really does make you look fat and you believe her, ask that person to go through your home with you as well and be brutally honest with you, so you have the opinion of someone you trust who isn't just trying to get your business.

Now, sit down with your realtor and discuss how to make your home stand out from the competition and how to do it at minimal cost. Do your bathrooms and kitchen need updates or just a really really really thorough cleaning?? Trust me, those two rooms have to be so clean that it looks like they came out of a decorators magazine. Every window needs to sparkle (as does all the glass in the house). curb appeal is important, you are moving anyway, so pack up and put it away. closets should not look crammed - there should be 2 empty coat hanger spaces for every coat hanger that is used or the closet looks too small. fresh paint in current colors is a must (not just white or off white anymore, there can be color, but it has to be the right colors). Your realtor will go through the home with you and help you to look at all the little home repairs that you have been looking at so long that you haven't been seeing them. The buyers will see them, so fix em now before a buyer says -ooo they haven't been taking care of little things, so they probably haven't been doing the big things either. from paint scuffs to doors that hit the walls when they opened and marked them, to making sure that any outlets that have 3 prong recepticles are really grounded. If you are in an area that requires a municiple inspection, go on and get it done and take care of anything that they say is wrong - shows the buyer that you are serious and that they won't find much on their building inspection (many sellers go on and do a building inspection so they can fix those items in advance also). do a home warranty, stage the home (stagers can work iwth your stuff as well as theirs, but don't be insulted if they tell you that some things need to go into storage for a bit, they are dressing your home for the prom, not for day to day living).

As realtors, we do this on a daily basis, so we know what to tell you when we go through your home with you. The big thing is you have to be willing to listen to us. I can list some things here, but it takes going through your home with you and seeing your home to know what specifically you need to do.

There are buyers out there. The phones haven't stopped ringing at our office over the past month with buyers who want to buy a home and we have people who are writing within a week of starting the process, BUT, we do have some who are getting overwhelmed with what they are seeing, so you have to really stand out, to get them to get off the fence and make the choice.
Web Reference: http://www.yourstlhome.com
0 votes Thank Flag Link Sun Apr 5, 2009
I do have a buyer looking in Florissant now and was wondering if I could get more particular info about your home, perhaps we could make a deal and save you the cost of the marketing part of the commission which may result in getting my buyer the price he needs and you netting a higher return and creating a "win-win" situation for all.
Is this a single family home or condominium/townhome? Ranch, 2 story, etc? Does it have a basement and is it a walk-out or does it have a rough-in for a bath? Is there a garage, if so how many spaces? On what level are the bedrooms and bathrooms located? Is there a yard and if so, is there a fence? What price range are you thinking your home is worth? Are you willing to pay or assist with closing costs? What subdivision is it in? When are you wanting to move - ie: do you need to wait for school to be out?
Please reply to twillis@psphomes.com if you would like more privacy to answer these questions
Web Reference: http://www.TerryWillis.net
0 votes Thank Flag Link Sun Apr 5, 2009
The fact that your home is young, backs to common ground and the subdivision offers a pool & you have a new furnace, AC, floors and paint (as long as it is neutral colors) should help your home to stand out when compared with the foreclosures and other homes in your area. You definitely need to select a realtor who does heavy marketing with lots of photos, and not a discount brokerage or fsbo assistance - especially on the internet where over 80% of the buyers today go to first when looking for a new home. A sign in the yard and a listing in the Realtor's MLS just won't cut it with that type of competition. You also need to make sure that your home is in tip-top condition and not in need of even minor cosmetic repairs when you are looking at this much competition. Also you need to really listen and act upon any staging advice given to you by your Realtor - we are really trying to help you accomplish your goal of a quick sale for the best price possible.
Offering a high commission/bonus to the agent who finds the buyer for your home is useful when there is so much compettion, to give the Realtors an incentive to push a little harder to get their buyer to select your home when comparable to others. You may also want to offer to pay the buyers closing costs or set a limit for assistance in this area, to make the buyers want to pick your home above other comparable homes. This may sound a little expensive, but you will be surprised to find that these tactics are also being used all over in our area so you probably can take advantage of this with the seller on the home you are going to purchase to pay all or some of your closing costs.
Hope some of these ideas are of help to you and would love to further assist you - just give me a call or send me an email through my web site.
Web Reference: http://www.TerryWillis.net
0 votes Thank Flag Link Sun Apr 5, 2009
Dale & Terry, Thanks you for your input. I agree with you. Another problem is there are currenlty over 500 homes in my zipcode(63031) for sale & over 200 in foreclosure. How do I make my home stand out from the others?
0 votes Thank Flag Link Sun Apr 5, 2009
The interest rates really do make a difference in your monthly payment. A 1% increase in Mortgage Rate on a $150,000 home equates to a $100 per month increase in payment or $1,200 per year and $36,000
more over a 30-year loan. It is twice that on a $300,000 home or $72,000. Waiting has its perils. As the market is starting to heat up in the metro area now, I believe that interest rates will start rising - probably faster than home values. So waiting to purchase a new home will probably cost you money in the long run.

Since you have the 20% down for the new home purchase you are "sitting very pretty" to get an excellent rate today and should take advantage of today's interest rates and lower price on the home you wish to purchase. You will probably even out the loss on your present home with the savings you will get on the new home, and may even come out ahead - especially if you can handle a little fixing up for the new home and go after a foreclosure or short sale or desperate seller.

Good luck! If you need any help with buying or selling, I would be happy to help you. Check out homes on my web site to see what is presently available in the area you wish to move into (and at what price) to help you make a decision. .
Web Reference: http://www.TerryWillis.net
0 votes Thank Flag Link Sun Apr 5, 2009
I'm not sure I'm totally understanding your question. YOu have a house to sell now and you expect to take a 20K loss on it, but you will be buying up. OK, you are selling low, but you will be buying the next house low also. When you run the numbers, typically you will save a greater percentage on the next house, then you will lose on this house in this market.

In the current market, days on market are much longer, so it may take you awhile to sell. Right now, the market has started to really move. So if you are planning on selling soon, this is the optimum time to put your home on the market to sell it, but be prepared that it still may take a bit of time to get it sold.

NOW, if you sell right now, and you buy right now, are you saying that you will be needing to move AGAIN, in 12 months, after you buy a new home now? If so, then I would advise you not to move now. 2 sets of closing costs within a year are typically not worth it. If you are saying that you need to sell once now and then buy one more time and that needs to be within the next year, then yes, I would recommend that you go on and do it now while the inventory is high and the interest rates are low.

Keep in mind that your home has to compete with all the other homes in the area, so you will have to price your home very competitively and ensure that you make it stand out from all the other competition to ensure that your home is the one that the buyers chose, just as when you are looking at homes, the other sellers are fixing up their homes hoping that you will chose their home.

Good Luck. There is a lot of absolutely wonderful inventory on the market right now - existing homes, short sales, and foreclosures.
Web Reference: http://www.yourstlhome.com
0 votes Thank Flag Link Sat Apr 4, 2009
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