Home Selling in 01960>Question Details

Liza, Both Buyer and Seller in 01960

Want to sell, but home is worth less than owed- do I have to FSBO?

Asked by Liza, 01960 Wed Jan 28, 2009

We want a larger home and now is the time to buy. With no equity and the likelihood we will owe the bank thousands, I can't see how we could also pay a realtor's commission out of pocket and still have money for a down payment. Is FSBO the way to go?

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BEST ANSWER
Hi Liza,
Have you already had a CMA done by a Realtor? A short sale is not an option if you want to upgrade. I suggest you go to a few FSBO open houses this weekend and talk to the owners about their experience. It can be done but you will have to offer out a smaller percentage to a buyer's agent. The ups and downs of selling yourself are too lengthy to go into in this forum. I can tell you that one of the biggest problems with completing a transaction today is the ability for a buyer to get a mortgage even after they have been told that they can. Having knowledge of the current mortgage guidelines can save a lot of problems.

I work on the North Shore and currently have two clients with accepted offers in Peabody. One is a short sale and one is bank owned. I would be happy to meet with you to go over your options and If you decide to go ahead and try yourself, perhaps I could help as a facilitator if you find your buyer. Let me know if I can help!

Mike Giles
Keller Williams Realty
978-882-4659
0 votes Thank Flag Link Thu Jan 29, 2009
Liza responded to my queston at the time and I sat down with them. We listed the property on March 28, 2009 and had a full price accepted offer on April 8,2009. This allowed them to upgrade to a wonderful single family home and stay within budget. This is why Trulia is such an awesome site.--Mike
0 votes Thank Flag Link Tue Mar 16, 2010
Maybe you could short sale. But reading and following rockinblu's blog should help you here.
0 votes Thank Flag Link Tue Mar 16, 2010
fsbo can be a good alternative to using a traditional broker as buyers are looking for deals. And they perceive they'll save a lot of money with a house for sale by owner. Give it a try on one of the free fsbo listing sites. If you get a good offer but it's less than what you now owe your lender, contact the lender's payoff or workout dept and see if they'll accept a lesser payout (short sale). They might very well these days. Ny Times this week printed an article saying nationally, prices will drop another 15% this year due to glut of inventory and rising interest rates coming soon.
0 votes Thank Flag Link Tue Mar 16, 2010
Hi Lisa:
i understood that were two points to your question. I apologise if i understood wrong.
My point is that by doing a FSBO you could save from 2% up to a total 5or 6 % of the sale price,
depending if a buyer's agent is involved and how you decide to address that part of the commission,
if you do decide to offer one. As President Obama stated and every logical creature knows, we are for
the long run, it will be a buyer's market for a while. Also MASS RE market review shows that AVG sale price is -9.3% and Mediam Sale Price -10.1% 2007 VS 2008, and off cource you could have a better data for your exact location which your exact market drop for the year after based on your year of purchase, cause every location is unique and every local market has different averages . Even by using the above averages you gain money. My suggestion was based on how you could maximise your benefits under this market which was mistakenly understood and derived from your comment ".... With no equity and the likelihood we will owe the bank thousands.....". Particularly you statement owe to the bank thousands.
Again i apologise if i misunderstood you. Now why would a lender do that, there are a lot of different
reasons, every situation is unique, avg days on the market keep rising, future unpredictability of the market as well as the home owner, etc, and maybe one of them is called taxpayers $700 billion bail out to the lenders. Good luck to you.
Yanni
0 votes Thank Flag Link Sun Feb 1, 2009
You don't HAVE to FSBO, try to find an agent in your area that has the ability to help you by negotiating the fee, you do need the representation and possibly some advice on pricing. There might be a possibility of renting, or lease purchase, among many other ways that would best fit your situation.
Jan McCoy
Jan McCoy Properties
Idaho & Washington
Web Reference: http://www.janmccoy.com
0 votes Thank Flag Link Sun Feb 1, 2009
Why would a mortgage holder want to modify the loan if we want to sell?
0 votes Thank Flag Link Sun Feb 1, 2009
Hi Lisa:
the proper term is Loan modification: This is a process whereby a homeowner's mortgage is modified and both lender and homeowner are bound by the new terms. The most common modifications are lowering the interest rate, reducing the principal balance, 'fixing' adjustable interest rates, increasing the loan term, forgiveness of payment defaults & Fees, or any combination of these. And in your case reducing the principal balance, based on your info. Good luck. Yanni
0 votes Thank Flag Link Sun Feb 1, 2009
Hi Lisa:
you also might be able to do a loan modification. In one of my transaction i run into a loan modification company. This program is offered by lenders to home owners that are not late in their monthly loan payments and with good credit. They are some other criteria to qualify too.
You can hire a company that will be paid out of the transaction. Basically an appraisal is done reflecting the current market value and their loan negotiators communicate with the existing lender(s) to agree to take less than what it is owed and at the same time that intermediary company has a new lender-investor willing to give you the new loan. I hope this is helpful,if you need more info or details on this program please feel free to contact me and can email you the company's contact info, etc.
Yannis Tsitsas.
CBRB
Cell: 781-354-1358
0 votes Thank Flag Link Sat Jan 31, 2009
This is not a short sale- we can afford to pay our mortgage and have never been late. I assume the mortgage holder would not be willing to take less than we owe, which is why we are looking to save money elsewhere (as in a realtor commission).

Thank you Mike Giles for your answer. I will give you a call later today.
0 votes Thank Flag Link Fri Jan 30, 2009
Hi Liza, do you want to sell or do you have to sell? If you are having trouble paying your mortgage then I can help you. If not, you might be stuck. Let me know if you have further questions.
Web Reference: http://www.BowenBoston.com
0 votes Thank Flag Link Wed Jan 28, 2009
I would strongly recommend hiring an agent well versed in short sales. You would not be paying anything out of pocket. Make sure the agent you choose has plenty of experience mitigating and negotiating with the bank. If you would like to find out more about our short sale success feel free to call or email us anytime.

Warmest regards,

BOYENGA TEAM
Intero Real Estate Services
Silicon Valley Specialists
Office: 650.947.4645
JANELLE: 408.373.1660
ERIC: 408.506.3942
Email: Homes@Boyenga.com
Website: http://www.Boyenga.com
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"Proven Results through Teamwork
Web Reference: http://www.boyenga.com
0 votes Thank Flag Link Wed Jan 28, 2009
You will be far better off hiring an agent experienced in short sales, in the end, the bank is covering the commissions, but the bank, and you, will be pleased if you hire a professional. I'd be happy to refer someone in your area if you don't have an established relationship with an agent you trust. Vchrisner@kw.com
0 votes Thank Flag Link Wed Jan 28, 2009
When any seller lists a property thru closing must comply with state laws. FSBO usually last longer on market home owners get tired of their attempts turn it over to professional realtors. You might want to investigate a flat fee listing agent where posted in MLS you receive benefits exposure of other realtors, buyers searching for your home to purchase.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed Jan 28, 2009
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