Susan in TN Posted July 21, 2008 Share Posted July 21, 2008 My in-laws have been trying to sell their house for about 7 months. They own a small house next door that they will move into after selling the 'big' house. Here's their situation. They don't really want to sell, but they are in so much debt (their monthly mortgage payments are almost double their monthly s.s. income - and at 75yrs old, they have a hard time finding extra work, although they do whatever they can find. I believe they took out a personal loan just to make it through the year.) The home is in a very small, ski-resort town in upstate NY. It's located on 8 acres on the side of a mountain. A very nice, secluded home with a gorgeous view of the valley and ski mountain. It has some very nice features; however, in terms of style, it's fairly outdated compared to most of the vacation homes that are available. It also has only 2 bedrooms (with an office) and it's a bit weird in the general outlay of the home. Their first asking price was $800K. Most homes for sale in that price range are new, luxury homes with all the fancy amenities or small estate farms. They have lowered it to $700K, but the best offers they've gotten have been between $400 and $500K. My inclination is to advise them to sell it for the best price they can get. $450K would at least pay off their mortgage and personal loan debt. Their realtor said those low offers were just insulting, as you'd expect. I just don't see how they can survive much longer. At this rate they'll have to file for bankruptcy and lose everything anyway. From what FIL said, their asking price was not so much based on what they thought it would sell for, but on their desire to pay off their debt, plus have additional money to live on and to make improvements/remodel the small house. What do you think? We don't offer advice unless it's asked for but they do ask our opinion once in a while. Quote Link to comment Share on other sites More sharing options...
abbeyej Posted July 21, 2008 Share Posted July 21, 2008 I'm surprised the realtor allowed them to overprice it by so much, and is discouraging them from taking less. Perhaps they'd be better of finding out what *comparable* homes are selling for in their area, and pricing it accordingly. Perhaps 450 *is* too low, but if 700 is ridiculously too high, I think they're more likely to get "ridiculous" offers than serious ones. If 550 or 600 would be more reasonable based on their area and type of home, asking *that* might make more sense and get them more serious offers. But I'm baffled by the realtor encouraging them to ask so much, if their house can't compete at that price point. Quote Link to comment Share on other sites More sharing options...
lwilliams1922 Posted July 21, 2008 Share Posted July 21, 2008 agents are compensated based on the price the home sells for. (DH is an agent in NY) Often time agents will list a house and give or reinforce unrealistic expectations to get the listing and commission. If you ask when you should sell, my answer would depend on your needs and situation. If they NEED to get out, I would say lower the price and do it quickly. If you or your inlaws need any help, advice or comps pm/or email me. I'll have DH help in anyway he can. Quote Link to comment Share on other sites More sharing options...
abbeyej Posted July 21, 2008 Share Posted July 21, 2008 agents are compensated based on the price the home sells for. I understand that. But if this agent is reinforcing the idea of listing a home at a price at which it will never sell, what good is that doing him or her? And having an asking price that's 200K of the mark is not going to bring in serious buyers for *that* home. Quote Link to comment Share on other sites More sharing options...
Plucky Posted July 21, 2008 Share Posted July 21, 2008 They should switch realtors. Have they looked at comparable properties? I know a lot of people want as much as possible for their home but it's only worth what a buyer will pay for it. By looking at similar homes on the mls it shouldn't be difficult to price the home accordingly and get a new realtor. Quote Link to comment Share on other sites More sharing options...
lwilliams1922 Posted July 21, 2008 Share Posted July 21, 2008 I understand that. But if this agent is reinforcing the idea of listing a home at a price at which it will never sell, what good is that doing him or her? And having an asking price that's 200K of the mark is not going to bring in serious buyers for *that* home. In our area I see agents promising the world and an inflated sales prices all the time. It get's them the listing with the sellers. No, it's not likely to sell at that price, but they test the water just in case knowing they can always lower the price later when the seller is 'ready'. Quote Link to comment Share on other sites More sharing options...
Plucky Posted July 21, 2008 Share Posted July 21, 2008 That's so dangerous to a seller. I've seen so many homes overpriced and then have to keep lowering the price further than if they had just listed it appropriately to begin with. I don't understand the psychology behind it but I've seen it play out here and the house just lingers. Quote Link to comment Share on other sites More sharing options...
Sharon in SC Posted July 21, 2008 Share Posted July 21, 2008 From what FIL said, their asking price was not so much based on what they thought it would sell for, but on their desire to pay off their debt, plus have additional money to live on and to make improvements/remodel the small house. This statement stood out to me. A home is worth what someone is willing to pay for it (not what the sellers need to get out of debt). If asked (or maybe even if not asked), I would encourage this couple to price their home according to current market value. The need to take out a personal loan to cover financial bases tells me that if they can get out of their home enough to pay off the mortgage and get out of personal debt, they're probably doing better than living off of personal loans to make said mortgage, kwim? Best wishes, Sharon Quote Link to comment Share on other sites More sharing options...
Sara R Posted July 21, 2008 Share Posted July 21, 2008 I agree with you and the others. Best not to chase the market down. A fair market price they can get today is likely to be better than the price they would get in 2 years. Mark it down and sell now! Quote Link to comment Share on other sites More sharing options...
Wendi Posted July 21, 2008 Share Posted July 21, 2008 It's time sell for whatever the house will bring. I think your in-laws need to inform their realtor that they are motivated sellers, and they want to price the house lower in order to sell it quickly. As Dave Ramsey would say, "The heck with the cheese! Let me outta the trap!" Wendi Quote Link to comment Share on other sites More sharing options...
Susan in TN Posted July 22, 2008 Author Share Posted July 22, 2008 You've brought up some good points. I noticed that the house is still listed for the original price on their realtor's website. We'll pray that opportunities to talk about the sale come up in a way that we can "gently" encourage more realistic expectations. Quote Link to comment Share on other sites More sharing options...
elegantlion Posted July 22, 2008 Share Posted July 22, 2008 It's time sell for whatever the house will bring. I think your in-laws need to inform their realtor that they are motivated sellers, and they want to price the house lower in order to sell it quickly. As Dave Ramsey would say, "The heck with the cheese! Let me outta the trap!" Wendi :iagree: The stress of an unsold house can be more damaging than lost equity, or sounds like phantom equity at this point. Quote Link to comment Share on other sites More sharing options...
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