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you want to slowly lower the price to find the market not just give the place away.
This is a mistake, especially in a declining market.
Slowly lowering the price, trying to find the market, usually results in you chasing the market down, always being priced a little too high, and never getting sold, or finally selling a year or two later for far less than it would have had it been priced correctly from the start.
You & or your agent need to do some serious research work. Most recent sales of the truest comparable properties. Find out what someone paid THIS MORNING, if possible, for the exact same property. Sine you will likely not find the EXACT SAME property, adjust for whatever differences there might be, positive or negative. That's your list price.
That is actually fairly close to true if your place is not FHA approved, like a condo that does not meet the reserve threshold for the HOA. 25% down is a little drastic but a conventional loan is going to require somewhere around 15% down which is still a chunk of change that most people dont have.
Here's another example. BTW, as stated his comment was wrong. As is yours. Conventional will vary but most lenders require only 5% down. I actually know of conventional loans with no MI that are still 100% financing but they have specific guidelines the borrower must meet to qualify for them.
Another example of bad advice Bill just pointed out. Slowly lowering the price is chasing the market and dieing a slow death. You have to get ahead of the market in a buyers market.
This is a mistake, especially in a declining market.
Slowly lowering the price, trying to find the market, usually results in you chasing the market down, always being priced a little too high, and never getting sold, or finally selling a year or two later for far less than it would have had it been priced correctly from the start.
You & or your agent need to do some serious research work. Most recent sales of the truest comparable properties. Find out what someone paid THIS MORNING, if possible, for the exact same property. Sine you will likely not find the EXACT SAME property, adjust for whatever differences there might be, positive or negative. That's your list price.
Thats how we came up with the initial value, EXACT properties were listed for 200k and not selling so we dropped it down to 189k to start the list and now down to 184k. The biggest reason its not selling is not because of the market its because of the FHA status. Other comperable homes have been selling quick for what we listed at BUT they are on the FHA.
So I can afford to wait becuase my place not selling is not market driven but FHA status driven. Because my HOA is motivated to get back on the FHA list that makes me hopefull that if it does not sell at the current price (which is very close to my break even price) I will wait till the units are back on the FHA approved list and relist the property and it should sell quick.
When going conventional you only have a very small pool of potential buyers and you likely have a disproportionate number of vultures because they have more cash for a bigger down so they get a little cocky, I dont want to do buisness with a vulture.
Here's another example. BTW, as stated his comment was wrong. As is yours. Conventional will vary but most lenders require only 5% down. I actually know of conventional loans with no MI that are still 100% financing but they have specific guidelines the borrower must meet to qualify for them.
Another example of bad advice Bill just pointed out. Slowly lowering the price is chasing the market and dieing a slow death. You have to get ahead of the market in a buyers market.
I have heard that 80/20 loans are so rare these days that very few people qualify, so even if they still exist a majority of your market is not going to qualify for them so your left with FHA. Its all about statistics not about theoreticals. 5% down for a conventional loan would require a stellar credit score and a very low debt to income ratio, this pretty much wipes out your pool of potential buyers to people with 20% down and I would imagine a good percentage of people that have 20 grand sitting in a bank account are real estate vultures whom I dont want to do buisness with because they are usually trying to low ball the heck out of people.
Here's another example. BTW, as stated his comment was wrong. As is yours. Conventional will vary but most lenders require only 5% down. I actually know of conventional loans with no MI that are still 100% financing but they have specific guidelines the borrower must meet to qualify for them.
Another example of bad advice Bill just pointed out. Slowly lowering the price is chasing the market and dieing a slow death. You have to get ahead of the market in a buyers market.
Also the other issue is im not going to lower it to a point where im writing a check so if it does not sell for at least break even price then im not selling it.
I have heard that 80/20 loans are so rare these days that very few people qualify, so even if they still exist a majority of your market is not going to qualify for them so your left with FHA. Its all about statistics not about theoreticals. 5% down for a conventional loan would require a stellar credit score and a very low debt to income ratio, this pretty much wipes out your pool of potential buyers to people with 20% down and I would imagine a good percentage of people that have 20 grand sitting in a bank account are real estate vultures whom I dont want to do buisness with because they are usually trying to low ball the heck out of people.
Not really, but I'm tired of correcting you. You win, I'm worn out and done.
Ah - not really. They aren't RE lawyers and they can tell you anything they want to and when they are wrong, who is one going to hold accountable?
I was responding to a question about what paperwork is required when you want to buy/sell. In my experience, the title companies know what needs to be filed, and when, and they are often overlooked as a good resource. They don't complete the forms; only tell you what needs to completed so the rest is on you. Completing forms can be done correctly by anyone with a high school diploma and shouldn't cost tens of thousands of dollars.
And anyone in the market to purchase a used car or sell their house via used car dude or RE agent should ALREADY be informed about the in's and out's of the process.
Exactly, including the real cost of the services performed! It is the homeowner who has made the payments and maintanined the property so why give away an unfair amount to someone who only wants a huge cut of the equity an owner worked for. Hopefully, more for sale by owner sites will provide a wake up call that people don't like being treated like a cash cow.
It's really easy: don't hire a realtor when you want to sell your property if you think a realtor's due diligence comes at no cost, or you're not happy about what it will cost you.
You get what you pay for is true in many circumstances but to over pay for what most people can do for themselves is not good business. Sales people will be more than happy to take as much money from you as you allow. Don't be dupped into thinking that only they can performs some highly specialized services....it isn't brain surgery, but it is a commissioned sale.
Eyes should be wide open when you sign that contract. What's it worth to you to do it on your own: advertise on your own (online ads - not Craigslist- cost $$) and hoping you reach every potential buyer you can, field the phone calls, sit in on your own open houses, negotiate with a buyer or a buyer's lawyer, especially if you're a neophyte?
I agree before signing any contract, legal representation is highly recommended so that commissions and ommissions can handled by legal professionals. Lawyers are highly educated and skilled negotiators, sales people only require a quickie license in most states.
I don't get the complaining. Know what you're doing if you hire one or if you don't. Negotiate commission, realize that it is a big chunk of change to pay, but also question if you have the resources and the connections and the know-how to do it on your own. If you do, go for it.
People have a right to express their opinon and shouldn't be squashed just because some want to hold themselves above the rest claiming superior expertise. By communicating we are able to exchange ideas which benefit everyone; not just complaining but improving the whole food chain. Again, I agree with you but if we don't communicate with each other what will happen to our choices?
Realtors provide services. If you don't want to pay for said services b/c it all "looks" too easy. Don't. But don't sit back and cry over the fee to sell the property on an online FSBO site. That "fee" is JUST the beginning.
Hopefully, computers will enable some of the process to be eliminated so as to bring down to earth outlandish charges. Many have lost a lot of equity today and need their money for their own retirement. When the old way of doing business is challenged, as it should be, resistance to change (crying) is just a natural part of evolving into a better system. All you really need is good professional legal advice to ensure that everything has been addressed and ethical.
Not really, but I'm tired of correcting you. You win, I'm worn out and done.
Maybe if you and others were more specific instead of making vauge assertions you would get more traction. My realtor has told me that 0 down does not exist in my state anymore and that conventinal was around 20% down or so but no where near as low as an FHA down payment which is usually 2-3%.
Maybe if you and others were more specific instead of making vauge assertions you would get more traction. My realtor has told me that 0 down does not exist in my state anymore and that conventinal was around 20% down or so but no where near as low as an FHA down payment which is usually 2-3%.
Maybe its different in other states.
Your Realtor needs to talk to more lenders. At the very least, there's 0 down for USDA and VA loans. And FHA is 3.5%.
Your Realtor needs to talk to more lenders. At the very least, there's 0 down for USDA and VA loans. And FHA is 3.5%.
Ditto, though to be fair to highlife he did say his condo complex is not FHA approved so VA/USDA or some of the other 100% options are likely not available for his buyers at least.
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