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So as some of you know I moved to TX a couple of months ago. Our house has been up for sale for roughly 5 weeks. The first two weeks we had zero showings - ouch. We then dropped the price a tiny bit and had three showings that wknd. Next weekend one showing and this past weekend zero showings. My post will be edited if I give any information about it so please pm me if you are willing to give any input and I will send you a link. I hope it's ok to say for discussion purposes that it's a 5 bedroom house in SW Durham.
Compared to the first few months of last year there has been less than 50% of the sales volume in my MLS area for houses in the same price range (two sold versus seven in the same time period last year). And I'm told the word of mouth with regional realtors is that there is a big reduction in the numbers of people even looking at houses over 300k, likely due to the drop in subprime mortgage availability.
Anyway, our choices are:
1/ keep waiting at current price
2/ lower our price a tiny bit now and then
3/ if it hasn't sold by early summer, rent it out, at a loss each month, or just keep waiting
Other factors are that we've only owned the house for a year so equity is piddly, and having two mortgages is not an option. We could rent in Austin indefinitely, but that of course is a less than ideal situation and the budget would be very tight.
The thought of renting terrifies me b/c of experiences my parents have had (they've rented properties for years), including six months last year that a house went unrented which really hit them hard financially. Plus we just had the entire interior painted $$$$ and I'm picturing terrible things happening to the paint, among other expenses. Lastly, a quick look at craigslist suggests we would take a big loss month to month.
Any thoughts from the realtors?
PS. We knew on leaving that this was an unwise thing to do from the standpoint of the house but I assure you that my husband's job offer was phenomenal enough for him career wise to warrant all the stress :P I think!
It IS definitely a stressful time for sellers right now. What does your agent recommend? S/he would be in the best position to offer advice.
With sales being off by 50% compared to last year, that means a huge build up of inventory is taking place. It also means that prices will continue to fall, perhaps quite dramatically. If you don't want to rent out your house, it would appear that your only option is to get it sold ASAP. Any delay will simply mean a further reduction in its value. In order to do that, unfortunately it's going to mean getting very aggressive with your pricing. Chipping away bit by bit will only prolong the agony. If your home is being marketed well and if it shows well and is in good condition then a lower price is the only means to getting a quick sale. On the plus side, you'll make more money on it by dropping the price now than you would if you keep your price high and it doesn't sell for six months to a year. The market will have dipped further by then and you'll have all those extra carrying costs, too.
I'd also really recommend reconsidering purchasing a home until after your present home has sold. Take your time, get to know your new location, and start following the market closely. That way you'll be in a better position to get a good deal on your new home.
The best to you. Not a fun time to be selling, for sure.
I agree with Gretchen. We were at 50% sales volume at the end of last year, and depending on sector and area our inventories are 6-23 months. I would be super aggressive now, and take the "loss" rather than slowly bleed it over the next few months.
Reduce your stress and get it done. Your local agent should help you figure out what you need to go to get it sold ASAP.
P.S. We have friends in Austin and it is a wonderful city. They love it there. I think you will be happy once it is all over. I know a great agent there if you need help when you are ready.
Hi,
I work as a broker in Chapel Hill and Durham, and in the past two months I have closed two Durham listings, one off Guess Road north of I-85, one in Eagles Point in SW Durham by Southpoint Mall. Both of these had been for sale thru the winter, then spring came and we got buyers. This past month a Durham listing of mine in Grove Park went under contract after 30 days on the market. My point is that there are houses being bought and sold in Durham.
In addition to the above comments re pricing, also pay attention to your house's presentation or appearance, and if you are on the MLS, the property description in the remarks section, and the attributes listed.
Moderator cut: removed
Last edited by autumngal; 04-09-2008 at 08:52 PM..
Reason: no signatures please, ty
I just found this thread Indigoblue. I remember you posting that your husband lost his job and I'm so glad to find out he got another offer so quickly---though it necessitated a move.
I agree with the above posters re: aggressive pricing to sell. If it doesn't sell in the next....60-90 days?--you might want to think about renting it. I know it can come with a lot of headaches, but it's better than having an unoccupied house and paying the two mortgages.
If we were on our way down there, we'd look at it! Unfortunately, we're still not able to make the move we want to do; my husband's last interview didn't pan out to an offer, and worst of all, the company for which he works in MA decided to shut its doors the end of the month. Can you say "panic"?
I would say drop the price and sell. If a hosue is priced right, it will sell in days ; that happened here (ny) recently. A neighbours house has been on the market for almost 2 years. Another neighbour put her house up for $20,000 less and it sold within 3 days.
As for renting ; I was in your shoes four years ago and did end up renting. It will break your heart. When the market here rebounds ; even if its a few years, I will sell.
Take the loss, get it off your back, and get on with life. Millions are facing the same dilema. Beat them to the punch and get out nearer the top than the bottom.
When the market here rebounds ; even if its a few years, I will sell.
Good luck
d
There is nothing that will cause a rebound in this generation. It was an unsustainable bubble, a ponzi scheme, and it has played out. The culprits have taken the money and ran leaving everybody else holding the bad paper and debt obligations on over priced properties. Past crashes have not recovered for many, many years. Read up on the history of real estate collapses.
There is nothing that will cause a rebound in this generation. It was an unsustainable bubble, a ponzi scheme, and it has played out. The culprits have taken the money and ran leaving everybody else holding the bad paper and debt obligations on over priced properties. Past crashes have not recovered for many, many years. Read up on the history of real estate collapses.
Of course, the government will try to expand FHA to buy up bad debt, which hasn't been done to this extent before. Given that the US government infects just about anything commercial it touches, my bet is that it fails.
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and the budget would be very tight.
