Selling Your Beloved Home

by Laura Jacobus

We've heard that old saying," There's a bottom for every seat." Why is nobody interested in my house?

Many will blame it on the market, the realtor or the neighbor who keeps everything on his lawn. The fact is, yes, every house has a buyer. But whether every house has a motivated seller is another question.

Self examination in selling your house is as difficult as a self therapy session. Sometimes we need to step back from being the "owner" and look at the situation as if we are not holding possession. The act of 'possession' will actually prevent the sale. Are you really WILLING to let go of ownership? What is your motivation? Most times it is taking a "loss" on the sale that prevents the owner from seeing the reality of the market situation. Yes, we all hate to admit truth of a poor investment and are embarrassed to feel defeat. But, lets see if we can use our observation and math skills to become the victor instead of the loser.

Some factors to consider are obvious, but lets look at all of the possible reasons that your home has had no interest to buyers.

Condition of property and nearby properties.
Has your neighbor taken a down turn or has a proposed change in the neighborhood given it a reputation? Is there power lines or RR tracks nearby? Be sure to look at your property map on theses sites:

Google Maps » ( use Terrain view)
www.stopthelines.com
Check out your agents online photos and write up as well!


History of Bad Press
Has there been a flood in your area, high crime, low school score report? Have you checked the state sex offender registry lately? Have you taken any negative insurance claims on your property? Any good buyers agent knows to look for these red flags before showing a property.

Check out these sites:
www.greatschools.net
New Jersey Sex Offender Internet Registry
www.isopropertyresources.com


Overpriced
This is most likely the number one reason your property is not selling. Every above negative brings down the value of your home a few thousand dollars. You obviously saw value in your home when you bought it. That value is still there. It may need to be priced adjusted to compensate for other factors that are negatively affecting your sale. Did you buy at a high time in the market? Or maybe you have overextended your credit and need the money to get out of debt? Is this really the new buyers responsibility? Would you overpay for a home to cover the past owners debt? Buyers are quite savvy on market value. They get keyed in quickly to the trend and the value. Some preview online for up to a year before they actually go into a home with an agent. You are not fooling anyone but yourself by expecting that the right buyer will come along and pick up your tab.

Lets consider the following scenario. You bought for your home in a high market and paid $400,000 with taxes of $7000 at an interest rate of 6.5 with 5% down. So your payment is now roughly $3000 per month. If it takes you 1 year to sell your home, you will carry this payment, or $36,000. Do the math and follow that number for 2 or 3 more years. It becomes staggering.

Your listing agent is telling you to drop the asking price on your home down to market value of $359,000 , by accepting an offer of $345,000. Your closing costs and inspection repairs will be about 7% of profits or $24,000.

Bottom line $400,000-$345,000=$55,000 loss add your fees of $24,000 and you are down $79,000. Let's look at the flip side, if you held onto your home at the high asking price for 2 years you are down $72,000. If no repairs are needed, you may be only slightly ahead. If you wait 3 years you'll be out $108,000.

But you have lost sight of the reason you want to move. What is more important to you. Moving on and accepting the loss of a few thousand dollars, or fighting the losing tide of recouping your bad investment. If you are unable to let go of this ownership, then do yourself a favor and take your home off the market until you are ready to compete and win freedom from your past mistake. Owing a bank a difference of $79,000 is a lot easier to live with, than the full hand.

Remember that the home you buy will also be at today's market. So you may get a good deal yourself!

Self examination is hard. But, letting go of old habits is freedom!