Yelena, Home Seller in Bloomfield, MI

Do I need to pay money to the bank to sell?

Asked by Yelena, Bloomfield, MI Sat Aug 2, 2008

I put my condo on the market about two months ago, recently dropped the price, about $20,000 less than what we paid in 2002 (I know it was peak market). It's now on the market for 120,000. However, one of the conodos in the complex has recently been foreclosed on and sold for $77, 500. Still, another condo sold for $140,000, but was not on the market at all (sold to a friend). My realtor just called and said that we will need to keep that foreclosure in mind. Does it mean that I would have to lower the price to that of the foreclosed property? It was in good condition apparently. Unfortunately, I owe more than $77,000 to the bank. :(

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Maureen Fran…, Agent, Birmingham, MI
Sun Aug 3, 2008
The condo market in SE Michigan has been hit hard in the last few years.

You might have to lower your price, but not to the point of the foreclosure. Your agent might want to figure out a way to make any interested purchasers aware of that sale for 140K in the complex, since most buyer's agents will not come up with that one when looking at comps.

Ask your agent where she thinks your condo is going to transact and for an updated market analysis. Price yourself to sell quicker than your competitors in the development.

Yes, if you owe more than you accept, you have to bring money to close if you have it. If you don't you can ask for a short sale.
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Keith Sorem, Agent, Glendale, CA
Sat Aug 2, 2008
The real answer is how many condos, like yours, are on the market right now? What are they selling for?
How does the condition of the foreclosure compare to yours? Yes, it affects your value, but so does the condition. Normally buyers like at 10-12 homes before the buy. Who are your competitors? Go look at them, then you and your REaltor come up with a plan.
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Scott Godzyk, Agent, Manchester, NH
Sat Aug 2, 2008
Good Evening Yelena, Yes you should keep the foreclosure under consideration but no you shouldnt lower your price to that of the foreclosures. Foreclosures sell less just with the stigma associated and people thinking, asking for or requesting a better deal than a regular sale. If there are other units for sale in your complex you shoiuld be priced aggressively to be near the lowest price but not in the foreclosed ones price. Let people make offers and that way the market determines the price. If you are behind in your payments you should begin the short sale process. Unfortanately if you are not behind, your lender will not consider a short sale and you will be responsible for any amount between the sale price and what you owe. Good Luck
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Patrick Beri…, Agent, Seattle, WA
Sat Aug 2, 2008
Well the simple answer is if you accept an offer of less than you owe (including fees, taxes, etc) then you will either be talking about a short sale or writing a check to the bank at closing. Neither is a very attractive option unfortunately. Maybe ask your agent to give you some current comps to see what's happened in the two months since you listed your condo.
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