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Trying to determine value in this market can be TOUGH!
We interviewed 4 realtors, we asked all of them to bring their suggestion of where they felt we needed to price our house if we really wanted to sell. Of course we had done our own research and had a number in mind as well.
There was an $85,000 difference between the low and high prices suggested! There were very few sales in our neighborhood to base comps on and the media was predicting further price declines at every turn. Realistically there was no way we were going to get anywhere near the high 2 of those realtors came back with. I guess their plan was to have us try and chase down the market? Not a good idea in our situation.
I wish I had a fabulous secret to share to get one or both of your houses sold... but my best advice is to be absolutely certain you're priced correctly for the market.
For us that meant undercutting our closest competition by 5% (same street, basically same floorplan, and we had the larger lot and more upgrades) then accepting what we felt at the time was a really stinky offer.
That was 2+ months ago and looking at current numbers in our old neighborhood it was a good call and maybe not such a stinky price after all.
It sounds like you have one of the nicer houses in the neighborhood. Just my opinion of course, but I'm afraid that could hurt you in this market. Lots of folks are looking for bargains right now and if your price is more per sq ft that neighborhood averages, even if you do have amenities to back up the higher price, trying to convince a buyer that your house warrants more $$$ could be a tough sell.
Good Luck, I hope you find a buyer soon!
As for the CA comment... it's much cheaper to rent than buy in many, if not most, areas of CA because house values are WAAAY out of line!
Talk about unrealistic, unsustainable prices
Do you absolutely have to sell? You've only been in the place a couple of years it seems.
I bought the new house in Kissimmee to move into. I put the original house on the market about 4 months prior to closing on the new one. As it turned out, I was about 2 or 3 months too late market-wise. So the original house doesnt sell right away. The closing of the new house comes and goes. Out of desperation I eventually list both of them. I never moved into the new one, because I cannot afford the cost of moving because of owning 2 houses. So I wait, with 2 houses listed. Yes I have to sell. I won't face foreclosure, but its hard to live like this with double bills.
I bought the new house in Kissimmee to move into. I put the original house on the market about 4 months prior to closing on the new one. As it turned out, I was about 2 or 3 months too late market-wise. So the original house doesnt sell right away. The closing of the new house comes and goes. Out of desperation I eventually list both of them. I never moved into the new one, because I cannot afford the cost of moving because of owning 2 houses. So I wait, with 2 houses listed. Yes I have to sell. I won't face foreclosure, but its hard to live like this with double bills.
Did the realtor you used to buy the second home not suggest to include a contingency in your offer regarding the sale of your former (then current) residence? I realize that it's too late now, but I can't imagine going to buy a house without knowing for sure that I could sell the one I'm currently in (if I were planning to use my equity to "buy up").
It sounds like you have options, just none that you like. I don't blame you-- I once had two homes on both coasts for more than a year. But it all turned out well and it can for you, too. It seems you have three viable choices:
1. Talk to your bank about a short sell on whichever property you could move quickest, with the least loss. Your credit will take a hit, but you can rebuild it. With the albatross off your back, you can start credit repair right away.
2. Rent the house you aren't in and cover as much of the mortgage as you can. The rest will be a tax write-off, and you can write off repairs and improvements to the property that will help you sell it down the road. Your renters may even want to buy the property later on, and you can sell it to them below market, since you won't have a broker's commission. This would be a win-win for all parties.
3. Price one, or both, of the homes to move and sell whichever home you can for whatever you can get for it. This might mean pricing below the comps and taking a hard loss, but you might be looking at a bigger loss in the future, since your market has shown no signs of bottoming. You will be out from under the house, and your credit will remain intact.
IMO, the worst thing you can do is continue to pay both mortgages and dig yourself into a deeper and deeper hole. The market is not likely to bounce back soon, prices may fall more and the problem is only going to worsen. Pick the option that is least distasteful to you, and take action now. Beating yourself up over it or taking an unrealistic assessment of your situation isn't going to help, and the bank will likely be receptive to a proactive plan. Good luck to you!
Well I appreciate those suggestions very much, thank you sincerely. The short sell idea makes me crazy. I have really good credit and thats very important to me. The rental may be an option, but I have no experience as a landlord and need to find out more. The homes are priced as low as they can be with commission and closing costs figured in, and to not go below the mortgage amount. I simply dont have the cash to make up the difference and drop them any lower. Thats why I wish I could sell without an agent (sorry guys) not because I dont want to pay it, or make money for myself, but because I need that cushion to drop the price further. Thank you again for trying to help me!
Did the realtor you used to buy the second home not suggest to include a contingency in your offer regarding the sale of your former (then current) residence? I realize that it's too late now, but I can't imagine going to buy a house without knowing for sure that I could sell the one I'm currently in (if I were planning to use my equity to "buy up").
I did not use a realtor to buy, I bought the new house at the beginning of the buying frenzy. Most existing homes that went on the market at that time sold in a matter of days and I had no reason to think (at that time) that the market would change so drastically. My original house was and still is VERY appealing, good location, immaculate condition, etc. I only missed the market by maybe 2-3 months. Plus, the builder would not accept contingency, they didnt have to, because they had a waiting list of buyers. The builder told me to list my house 'when the drywall went on' and that would be great timing to sell the old and then close on the new. I guess a crystal ball would have helped. I could have sold the 1st house about 4 months before closing on the 2nd, put the furniture in storage and rented somewhere. Who knew? I watched resales flying off the market. Again, thank you for trying to help, I really appreciate all of your comments.
Trying to determine value in this market can be TOUGH!
We interviewed 4 realtors, we asked all of them to bring their suggestion of where they felt we needed to price our house if we really wanted to sell. Of course we had done our own research and had a number in mind as well.
There was an $85,000 difference between the low and high prices suggested! There were very few sales in our neighborhood to base comps on and the media was predicting further price declines at every turn. Realistically there was no way we were going to get anywhere near the high 2 of those realtors came back with. I guess their plan was to have us try and chase down the market? Not a good idea in our situation.
I wish I had a fabulous secret to share to get one or both of your houses sold... but my best advice is to be absolutely certain you're priced correctly for the market.
For us that meant undercutting our closest competition by 5% (same street, basically same floorplan, and we had the larger lot and more upgrades) then accepting what we felt at the time was a really stinky offer.
That was 2+ months ago and looking at current numbers in our old neighborhood it was a good call and maybe not such a stinky price after all.
It sounds like you have one of the nicer houses in the neighborhood. Just my opinion of course, but I'm afraid that could hurt you in this market. Lots of folks are looking for bargains right now and if your price is more per sq ft that neighborhood averages, even if you do have amenities to back up the higher price, trying to convince a buyer that your house warrants more $$$ could be a tough sell.
Good Luck, I hope you find a buyer soon!
As for the CA comment... it's much cheaper to rent than buy in many, if not most, areas of CA because house values are WAAAY out of line!
Talk about unrealistic, unsustainable prices
Thanks for your kind comments. Actually the house in Kissimmee is one of the lower-priced homes... it was listed over the summer for $399,000 but there are many houses in the neighborhood in the 400's, 500's, and even 600's and 700's. My latest comp analysis done by a realtor who knows the area very well and his findings were that the 'true value of your house is $375,000' (his words)
What happened in CA is a classic speculative bubble. People paid too much, because they believed someone else would pay even more. It's called the "greater fool" theory of investing - the idea there's always a greater fool who'll pay even more than you.
Speculative bubbles always pop. It's like musical chairs. Eventually the music stops, and somebody's left standing. You just don't know when, or who.
Well I appreciate those suggestions very much, thank you sincerely. The short sell idea makes me crazy. I have really good credit and thats very important to me. The rental may be an option, but I have no experience as a landlord and need to find out more. The homes are priced as low as they can be with commission and closing costs figured in, and to not go below the mortgage amount. I simply dont have the cash to make up the difference and drop them any lower. Thats why I wish I could sell without an agent (sorry guys) not because I dont want to pay it, or make money for myself, but because I need that cushion to drop the price further. Thank you again for trying to help me!
I went with the rental option, when I was in your situation. I didn't want to, but I was determined to protect my credit, so I gave it a try and it worked out great. The renters didn't end up buying my house, but friends of theirs did, so I was able to come out ahead, and it opened me up to rentals as investment property. Now I own multiple rentals and I'm using it as a long-term retirement strategy. Talk about turning lemons into lemonade! It sounds like the rental option is the only one that will work for you right now, so I hope it all turns out well. This bubble market downturn seems to have legs, so I wouldn't want to wait it out. Renters can be making a lot, if not all, of your payment for you. Being a landlord isn't all that hard, and you can always retain a property manager. But that's just more money out the door. Good luck!
You might also consider trying a cheap or free MLS-only listing service (Iggy's House is supposedly free). If it doesn't work, you can always go back to a full-price agency.
Landlording is easy, if you have good tenants. Otherwise, not so much.
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