What are we doing wrong? (lease, mortgage, credit report)

Himpurs · 08-26-2010, 06:21 PM

We have a really nice home on acreage and has many pluses. Great area, great schools and convenient to Lake Michigan and bigger cities for shopping. We have had it on the market for a couple of months and we are not getting as many lookers as we would like. All family and friends love the house and we are actually way lower then area comps and we are now dropping the price again because we need to get it sold. I know the situation in MI, lived there. But from others experience do you think we are listed with the wrong realtor? What can we do to help boost it for more people to look at? (Besides lowering the price, we are already going to have to bring money to closing)!

Alley01 · 08-26-2010, 06:25 PM

You live in the state with the worst economy right now. Frankly, no one is moving there and very few lenders want to take the risk of giving money to someone that may lose their job in the future. It is just too risky. The state is at a standstill. Even the most desirable homes years ago are no longer that. The rest of U.S. has been dealing with the recession since 2007. In Michigan, you have been dealing with it since at least 2004.

It just sucks. I think you are doing all that you can...and I know that there are a lot of people in the same boat.

Could you look at renting your house? Just until things look up and you can sell your house without losing most of the value?

Regardless, Good Luck! I know a lot of people in Michigan that are hurting right now.

Coldjensens · 08-26-2010, 06:35 PM

Can you carry part or all of the financing? that could make a difference. There are nto too many buyers out there right now and the ones who are have difficulty getting financing. If your price is right and you are listed inthe MLS, then there is just no one with that kind of money available looking in your area. Prehaps if you can offer some financing options, you may attract a different segment of potential buyers (those who cannot get a loan for the full amount of your house value). However you are taking a risk of course. If they lenders will not provide financing, there is a reason for it.

By the way, talk to a tax advisor. Due to tax changes in January, it may be better to take a further reduction and sell your house this year, than to risk having to wait until next year. I am not sure.

Giesela · 08-26-2010, 07:04 PM

Well one, acreages always take longer to sell everywhere even before the bubble dropped and two, they IMHO have a tendency to money pits. Getting your money back is hard unless your prime commutable acreage outside a big metro area like DC or something. People look at the price and it seems high even though they know it comes with land - it doesn't compute in their heads.
If you think it might be your MLS listing or your realtor I would suggest a particular forum where I have seen some good advice. You'll have to privately email me through here though, I'm not sure I'm allowed to list a different forum here. You can link to your MLS listing and people will try to help you make your listing sound and look better (if you can get your realtor to change it, sometimes a struggle).

dori36 · 08-26-2010, 07:33 PM

Quote:

Originally Posted by Himpurs

We have a really nice home on acreage and has many pluses. Great area, great schools and convenient to Lake Michigan and bigger cities for shopping. We have had it on the market for a couple of months and we are not getting as many lookers as we would like. All family and friends love the house and we are actually way lower then area comps and we are now dropping the price again because we need to get it sold. I know the situation in MI, lived there. But from others experience do you think we are listed with the wrong realtor? What can we do to help boost it for more people to look at? (Besides lowering the price, we are already going to have to bring money to closing)!

Boy, do I feel your pain! I also had my small farm, 25 miles east of Michigan State University, 15 acres, turn of the century farm house remodeled, barns/corrals for horses or livestock, etc,, etc Wonderful place with curb appeal to burn. It's the times, I'm afraid. I did have quite a few lookers, though. I worked together with my Realtor and had it just about everyplace online that a rural property could be. I put great pictures up (lots of them) and made sure I described just about every inch of the place. I monitored the sites myself and my Realtor and I worked as a team. I turned over any inquiries to my Realtor. Sometime I showed it, sometime she did, sometime we both did! Unconventional times call for unconventional solutions.

I couldn't offer a Land Contract as I have a conventional mortgage on the place and the "due on sale' clause would necessitate that I pay off the place if I were to deed it to a new owner. So, in April I leased it with an option to buy. It's a 2 year lease with an option payment up front that is non-refundable if the lessees decide not to buy it. I also collected the first month's lease pmt and the last month's lease payment up front. The lessees really want to buy it but both had strikes against their credit over the past few years as so many people have in today's market. I read the credit reports from each of them and decided to take a chance and give then a break.

I incentivised the monthly lease payment by offering an extra amount to be applied to the purchase price down the line if they pay on time and using PayPal. They have paid, so far, exatly on time and using PayPal is easier for them, too.

I think we have to be creative in these times and maybe not get the exact situation we may have 10 years ago. Maybe let you Realtor know that you'd entertain a lease/opton for the right $ and the right people. Best of luck!

Himpurs · 08-26-2010, 07:34 PM

Quote:

Originally Posted by Coldjensens

Can you carry part or all of the financing? that could make a difference. There are nto too many buyers out there right now and the ones who are have difficulty getting financing. If your price is right and you are listed inthe MLS, then there is just no one with that kind of money available looking in your area. Prehaps if you can offer some financing options, you may attract a different segment of potential buyers (those who cannot get a loan for the full amount of your house value). However you are taking a risk of course. If they lenders will not provide financing, there is a reason for it.

By the way, talk to a tax advisor. Due to tax changes in January, it may be better to take a further reduction and sell your house this year, than to risk having to wait until next year. I am not sure.

We probably could carry the mortgage but we are living out of state and have another mortgage we are also paying.

We feel we are too far away to act as "landlords" while we carry the mortgage for someone else.

We have had many people offer to do land contracts, our mortgage doesn't allow it anyways.

Alley01 · 08-26-2010, 07:38 PM

Quote:

Originally Posted by Himpurs

We probably could carry the mortgage but we are living out of state and have another mortgage we are also paying.

We feel we are too far away to act as "landlords" while we carry the mortgage for someone else.

We have had many people offer to do land contracts, our mortgage doesn't allow it anyways.

Hire a property management company. They handle the renting out, collecting, terms of the lease, etc. A lot better than doing it yourself. Most are very reasonable with their fees and they take care of repairs too! Not sure what local ones to recommend to you but we have had success in the past.

Himpurs · 08-26-2010, 07:49 PM

Quote:

Originally Posted by Alley01

Hire a property management company. They handle the renting out, collecting, terms of the lease, etc. A lot better than doing it yourself. Most are very reasonable with their fees and they take care of repairs too! Not sure what local ones to recommend to you but we have had success in the past.

We may have to do that if we cannot get it sold. But unfortunately we have a unique situation and need to buy another house for job reasons, but cannot until the MI house sells.

magellan · 08-26-2010, 07:55 PM

There really aren't ANY buyers for what you are selling; that's why you haven't had any "real" lookers. Even the people who are employed don't have the finances to maintain acreage and commute from a rural area.

In case you haven't heard, it's one of the worst economies in about 80 years, and Michigan is feeling the major brunt of it. Figure out a way to get out, even if it means taking a loss.

Driller1 · 08-26-2010, 09:27 PM

Quote:

Originally Posted by Himpurs

We have a really nice home on acreage and has many pluses. Great area, great schools and convenient to Lake Michigan and bigger cities for shopping. We have had it on the market for a couple of months and we are not getting as many lookers as we would like. All family and friends love the house and we are actually way lower then area comps and we are now dropping the price again because we need to get it sold. I know the situation in MI, lived there. But from others experience do you think we are listed with the wrong realtor? What can we do to help boost it for more people to look at? (Besides lowering the price, we are already going to have to bring money to closing)!

Have you had an "Open House"???