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It just doesn't make any sense to dig your heels in and think you will get "your price" when selling a house.
I am in contract to sell a small house in CLT. It has been in contract for 2 months. All is OK with buyer, financing, term etc. We were due to sell this past Fri. Wed nite FHA produces an appraisal $5000 below the agreeded upon selling price. Both selling agent and buyer's agent submit a dozen comps for support of the higher price. Rejected by FHA. AND, FHA will not accept a new appraisal for SIX months. Take it or leave it.
So yesterday, I took the $5000 hit and will move on instead of the risk of hanging out for a higher market. Hope I close on Tues.
My point is that it doesn't really matter what you think your house is "worth" and if you want to move on, and not wait for some recovery that is not going to happen, you have to go with the conditions of the market.
$5,000 is nothing in the big picture but what about a R.E. pro says the comps show that "your house is overpriced by $50,000" but when the comps come back it only works out to $37,000 and that's the what the reduced price was advertised at after 3 months. Prices are still declining. Smart move and don't beleive everything a R.E. agent says since they aren't the smartest.
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So yesterday, I took the $5000 hit and will move on instead of the risk of hanging out for a higher market. Hope I close on Tues.....
The good news is that you sold a depreciating asset. Hopefully you got rid of it before taking too much of a haircut. It's now someone else's problem and/or the federal government.
When you think about it, when the only buyers out there are ones being back stopped by the federal government, it's not a good to own property that you need to sell. Real estate has no where to go but down, maybe another 50%, so you got out while the going was still good.
It's so true... I can't count how many times we see posters in this very forum talk about the value of their home as if it's bankable in numbers. I lost x% (whatever it is) and mention it as if they could get it tomorrow.
The reality is that all I keep seeing is an unbelievable deal beat the next and I think you are taking a huge risk buying anything over $350k. As someone who is constantly looking, I can't see any bottom in sight.
Face it, if someone moved here at the height of the market, say 2005-2006, I bet over 50% of those folks are underwater with their mortgage. Can you say short sale????
Obviously, you guys don't know pink very well. He buys/sells low-end properties for a living. Real estate is still the best investment out there, as long as you are smart about it. Certainly better than the volatility of the stock market!!
Mikey, you are right, it is the higher-priced properties that are now in serious trouble as far as values go. However, the lower-end properties are in somewhat of a shorter supply, thus, their prices have probably bottomed and are correcting to become stable. (again, depending upon your certain neighbourhood).
Prices will never be again what they were in the boom times, but, they will still appreciate (at a lower rate, granted) and not depreciate once they have become stable.
Add the fact that these people have been Refiancing several times since they bought, basically buying the home from themselves but paying fees and closing costs each time.
Folks using their home as a piggy bank is what I call it!!!!
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