My house went up for sale last week, do I blowout sale it or sit on getting more money, where is the market going and how soon?
Submitted by tog2476 on Thu, 08/06/2009 - 00:04
I will have equity, but equity from the money I spent fixing it up. I bought it for $125,000, put about $35,000 into it over the past 5 years, and listed it for $139,900. At this price, I am losing about $20,000. I think I can get it if I sit on it, because it is totally remodeled, but if I sit on it, will I see the bottom fall out even more. I am pretty certain if I price it at $129,900, it will go fast. I owe $112,000. Do I have time to sit, or do I blow it out? I would prefer opinions backed up by factual information. We all think the lid could blow off this thing anytime, myself included. How much time do I have based on facts, not on speculation? Thanks for the help!!
»
How to sell your house
I am going to assume that your region has a slow real estate market similar to the rest of the country. Having sold several houses, both by owner and with an agent, I would definitely recommend pricing the house to sell as soon as you go on the market. It is a fallacy to think that you can wait out for a better price. The first couple of weeks are absolutely critical when selling a home. You need to take advantage of the excitement that surrounds your property when it is first put on the market. With all this said, I would recommend selling your house by owner. Take off the 3 or 4K you would be giving to an agent and make your house the best value in the area. You can hire an agent to do the final paperwork at minimal cost. In the first couple weeks, have several open houses and considering advertising them in a local newspaper(s). Also, see if you can get your listing on realtor.com or a similar site. You have to be absolutely committed to making your house show as nicely as possible. That means: make sure you have good curb appeal, remove any personal items from house (pictures of family..., so people identify your house as their own), and removing all clutter. Good luck!
Brad
As a Realtor here in Twin Cities, take what you can get
and get out if that is your intentions. There will be no "getting more money". If you can even 'sell' it you will be lucky. Take the money and run.
Are there still those out there who would pay extra if it has great features, maybe, but don't rely on it. It is really hard to get a mortgage these days seeing how so many have ruined their credit (which is something of a scam), and are losing jobs left, right and center. I'd say take what you can get.
All you have to do is do a mile radius from your home within the last month, two or three and see what homes compare with yours. Average out the price and make it your asking price. At least you will be in the ballpark as to what it currently may be worth.
www.therootsofchange.com
Excellent points !!!
That's has to be a drag on the housing recovery: "It is really hard to get a mortgage these days seeing how so many have ruined their credit."
If it was for not us necessarily wanting to move I would not spend $50 K remodeling this old house (won't get it back/our age). "Are there still those out there who would pay extra if it has great features, maybe, but don't rely on it."
I would get rid of it!!
In my opinion with the way things are going. I do not see this turning around for 5 to 10 years. I understand that is a big range.....and I am leaning toward 10 years rather than 5. You are facing another 20% to 40% decrease in your home. The Jobs numbers do not lie. This is not going to turn around. You will go more upside down than you are now. Dump it, and rent a nice house. I dumped mine. And now I am renting a beautiful 3000 square foot new house for $697 a month (I have a roommate). 5 bedroom brand new house.
This is my opinion. Sell it now......
Just read....
http://www.davemanuel.com/2009/08/05/deutsche-bank-48-of-us-...
This is coming soon....
http://www.dailyfinance.com/2009/07/27/are-commercial-loans-...
From this article....
Worsening conditions are "a result of the stress on a broader segment of borrowers due to the rise in unemployment and the decline in home prices," the company said.
Read it all here....
http://www.reuters.com/article/newsOne/idUSTRE5756ZH20090807
I could list tons of articles like this.....but I think you get the point.
You asked.....and this is my opinion.
The Mexican next door
... bought during the bubble interest only. Did he get screwed ! He is still there paying on a $269,000 home worth $160,000. Go figure...
We live in a Chicago burb, plenty of jobs if you want to work, maybe not the best paying.
Bound to go up eventually.
How much do you pay in taxes each year? Where will you go if you sell? Can you use it to make income? Do you have a fixed mortgage?
Remember, you never really own your home. The government allows you to live there only as long as you pay the taxes.
grant
True. Inflation will
True. Inflation will eventually push prices back up.
The concept of never really owning homes is quite interesting. So, compare New Jersey to a state like Oklahoma... Average property tax in NJ is $7,000 now. In OK it's around one tenth of that amount. Would that somewhat mean that people in OK effectively "own" more of their homes as compared to people in NJ? Not literally, but just based on the government's "stake" in the homes.
...
Historically house prices double every 10 years
... until the government engineered this recession to wipe out oil producing counties wealth (Sovereign Funds). In doing so our debt and their financial power was wiped out. Kissinger called for a plan to do just this in the mid - 1990's.
... In another ten years you should double your money (all things being equal). The bankers will come up with a way of moving prices up on the inventory of homes they now have. They always do, wait and see. I've been in my home since 1971 and it has doubled 2.5 times or 5 times original price in 38 years.
Didn't the gov do the same
Didn't the gov do the same thing to the oil countries back in 1980 with gold?
About the price of housing, my fiance's parents bought their house maybe 35 years ago. $25k back then and now probably $250k (probably $350-400k when the market peaked). So... it is true, at least historically, that housing prices continually go up.
I think what we need to look out for is the next bubble. What will it be? RollingStone, based on the recent Goldman Sachs article, expects that carbon credits will be the next bubble. How will that affect the price of housing in the future? I haven't thought enough about it yet, but imagine if the gov was to give additional carbon credits to those who live minimally in smaller homes, etc. If people can sell those credits to companies that need the offsets, then it could result in money coming in from a small house... maybe take some of the traditional market away from the larger homes and increase values on the smaller ones. All it would take is another change in the law related to cap & trade. This would probably happen especially if carbon credits are to be the next big thing / bubble.
...
You are right !
The U.S. gov handed Saudi Arabia their head, they were bankrupt when gold and oil fell and sold gold at a huge loss to feed its populace. You can't eat gold or oil.
Keep thinking outside the box. Kudos !
I'm sure your property taxes
I'm sure your property taxes have gone up as much over the past 38 years.
How much have you paid in property taxes over the past 38 years? Will you get that in return when you sell your property?
A house is never really a good investment to earn money unless you are able to make an income from it.
grant
My attorney at the closing couldn't believe how low my
... property taxes were in 1971, less than $200. I'm un-incorporated in the same county as Chicago. I pay little over $2000 now with homestead exemption and seniors exemption. Some years even less depending on my fixed income I can even claim Seniors Freeze, then I'm low $1000. For the area we are probably one of the lowest w/o businesses supplementing the tax base. If I was striped of my exemptions, I'd be over $5000. Where can you live for $2000 per year or less other than Bangladesh ?
I'm a Realtor in Florida. Sell it now and sell it fast!
In spite of the many foreclosures we've already had, we've only seen the tip of the iceberg. In Orlando, 70% of our market is in pre-foreclosure. Much of the country is in the same shape. Things are going to be so much worse before its all said and done. Get out now!
GR8 Point
I'm inclined to agree with you. As a former REALTOR and investor, even if the market goes up - our country will be forever changed. Under fascism, the government (defined as a body of self-proclaimed elite) becomes the dictator and takes everything away from the populous unless you are on their side. I say sell now for as much as you can & buy a motor home. Be frugal with the extra $ so you can buy gas.
Detective Krum Investigates:
http://victory1project.wordpress.com/
http://v1-p.com/
Detective Krum Investigates:
http://victory1project.wordpress.com/
When and if you buy another house
When you buy a home, try to negotiate to buy it on a contract between you and the seller, with no interest, and no bank. Simply offer more over the market or asking price; and you will still come out miles ahead; and you will have the satisfaction of sticking it to the bank.
R3VOLution
If you can sell it then sell it FAST!
because soon you won't be able to. forget about a return on your money but start thinking return of your money before you lose it all.
Then you may consider putting your money in a different currency.
Like Norwegian Krone, or Singapore currency.
Because when our creditors drop the dollar you will see the dollar drop 50% overnight. Or after a bank holiday.
the real estate market will not recover it has not hit bottom.
There are 19 million empty homes 26 million by the end of the year some of which the banks are keeping off the market.
wait til they get dumped on the market.
The US economy will not recover! IT WILL NOT RECOVER!
Do you hear anyone talking about reindustrialising America?
AND YOU WON'T BECAUSE THEY WON'T.
THE PEOPLE ARE STILL ASLEEP OR WATCHING THE GAME.
YOU BETTER SELL AND SAVE YOUR ASS!
If you expect the dollar to
If you expect the dollar to drop by 50% overnight then why would you suggest selling real assets and holding dollars instead?
A 50% drop in the value of the dollar should double the price of real assets in terms of dollars.
Holding dollars while expecting the dollar to drop in value might not be the best idea.
In addition, declining value of the dollar is very beneficial to those who are in debt (while at the same time hurting those who save).
Just some things to consider...
...
Thanks for all the advice below
Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine
I am thinking I will sit on the price for about the rest of the month and then go to the blue light special pricing. Maybe Goldman Sachs will cut me a check for the difference. I don't need to sell, but to hell with winter, especially if we are gonna see some SHTF stuff going on. Like I said, if I am gonna die, it will be looking at the sun, and being warm. Time for some vaseline soon I guess.
Those who expect to reap the blessings of freedom must. like men, undergo the fatigue of supporting it.-Thomas Paine
The R3volution requires action, not observation!!!!
If you're planning to cut
If you're planning to cut the price by $10,000 in a month, why not put a few hundred dollars into better advertising your home for sale. Spending $500 marketing your home *might* enable you to sell it without dropping the price so much.
Also, what about putting out word that you're willing to give $5k towards closing costs at the $139,900 price? $5k + the $8k from the government might be a good enough incentive and you end up only losing the additional $5k instead of $10k.
Just some ideas...
...
Marine, I'm the most country you can be, and still in the city
... I was told that by my Black 7th Calvary buddy from Mississippi; I'm in a Chicago burb 15 minutes from O'Hare Airport. I'm in my starter home because it was the center of my business service area earlier; retired now. A lot of maintenance, and I'm getting older and at the crossroads of moving into something more easier to maintain or remodeling this old Cape Cod circa, 1947.
The question is do I put 50K (minimum 20K) into this old house only later to able to sell it for 10 to 15K more or spend 150 K in a newer upscale home in the outlying burb's with double the tax ? Actually the wife wants to stay here, she has a big garden, and it is quiet considering. All our youthful dreams of Hawaii and Florida that we can afford don't appeal to us anymore.
Awaiting the contract from my general contractor now, the wife just picked out a new kitchen granite counter-top today - Indian Juparana http://www.allmarbleandgranite.us/images/0427.JPG costs $2000 installed, I think we will be here for awhile yet. :(
SF
USMC 1960-65
Mine has been
on the market for two years. Unless you are prepared for the long haul, price it below the competition. Good news is that price range, under 200k, is selling the best right now. Get a marketing plan you agree with from your Realtor in writing before U sign anything.
Lousy time to sell.:p
Under Pressure
http://www.youtube.com/watch?v=xtrEN-YKLBM
The DP is proof that the grassroots support for Ron Paul and his peaceful message of individual liberty is large, real, and not going away!
Hmmm, it sounds like
you have been thinking this over and have considered that you would rather die where it is warm. Any money you invested in your home I would not consider it a loss if you have been able to enjoy it. You improved the house not only for resell but your own enjoyment, at least that is the way it should be. We are all in the same boat and only guessing what the best thing to do. Do you have relatives or friends you would want to be near because that would be a network worth considering when things get bad? Something to consider are there foreclosed homes near you that would affect the value of your home. I have heard stories of mortgages falling through because values are connected to what the foreclosed homes are selling for. That is a nightmare. Good luck, to you in whatever you decide.
Prepare & Share the Message of Freedom through Positive-Peaceful-Activism.
Well I'm going to tell you
Well I'm going to tell you something about Property...A house is not, a home..It is not an investment & does not matter financialy what the markets do.. Your house is still compareable to the same ,other houses in your location..Property value is a BS story & value never increases as you compare your neighbor's house & your own ..Taxes increase with prices. the only people or entity that makes out are the tax collectors ..So whatever the market does you & any other property stay within a proportion of each other ..You never loose value , only price...there is NO price that can replace your home, if you are satisfied..The next property will either cost you more or less depending on an upgrade, but your property is either worth more or less in proportion to the rest of the market ..If youare happy keep what you have ..
Except for the fact that you need a house , houses are a bad investment..
Add up your total expenses & subt.from selling price & you will see what I mean.
naughty, naught
Depends on your needs
and how much you enjoy your home.
Are you forced to sell?
Do you love your home?
Are you financially secure?
Its tough to make that call without knowing more of the situation. If I were to take a loss of $20K and I liked my home, neighbors and neighborhood I wouldnt leave unless I had to.
The house is still an asset and if the market does fall out its not going to fall to $0. I would be more worried about where I live and sit it out.
There are so many factors on a decision like this. Just take your time and make sure you want to take a loss that large...
'Peace is a powerful message.' Ron Paul
You may want to take your licks...
I don't know if you are in one of the harder hit states, or how popular the area where you live, but if you aren't getting enough people walking through the door at that price by the end of the month you should take your licks and lower the price, if you really need to sell. It is not going to get better, probably for a long time. My house has been for sale and it's worth $50,000 less than when I had it on the market 2 1/2 months ago.
If you have a way of checking comps in your area, remember that foreclosures or short sales will set the comps for your neighborhood and you'll have to sell at those prices.
SELL IT!!!
YOU CAN DO IT MARINE!!!
just put your head down and make it happen!!
GOOD LUCK !! TOG :)
If you spend a bit of money
If you spend a bit of money on advertising do you think it might help to sell your house faster without having to decrease the price much more?
...
Not Quite
I put my house up for sale on Craigslist and got some nibbles, but no sale. People walked through my house and looked around and then left.
Many people suggested I get an agent, which I reluctantly did. It was good advice. Yes, you pay the agents 7 or 8% but it's worth it. They know how to advertise your house and how to maximize its exposure.
Don't mess around on your own. Get a professional. Hey, you'll make a new friend in the process!
Try 5% commission
7 or 8 is high. Add a selling bonus to listing and selling agent if sold within x period of time.
R3VOLution
Get a good agent
That's the best advice anybody can give you. A good agent will help you get your house and grounds in shape to sell it. A good agent will list it properly and get the most for you.