Selling Your Beloved Home… Letting Go!

We have all heard that old saying,“There’s a buyer for every home.” Why is no one is interested in my home?

Many will point finger at the market, the realtor or the neighbor who keeps everything on his front yard. The truth is, yes, every home has a buyer. But whether every home has a driven seller is another question.

Self analysis in selling your home is as difficult as a self counseling session. Sometimes we need to step back from being the “home owner” and look at the circumstances as if we are not holding possession. The act of “possession” will actually stop the sale. Are you really READY to LET GO of ownership? What is your incentive? Most times it is taking a “loss” on the sale that stops the owner from perceiving the reality of the market situation. Yes…, we all hate to accept the truth of a crappy investment and are ashamed to suffer defeat. But, lets see if we can use our observation and math skills to become the winner alternatively to becoming the loser in this situation.

Some details to consider are crystal clear, but lets look at all of the possible causes that your home has had no interest to buyers.

Condition of Property and Neighboring Properties
Has your neighbor taken a down turn or has a suggested a change in the neighborhood given its reputation? Is there electric power cables or railroad tracks close by? Be certain to review your properties geography for inherent problem areas, typography and historical relevance.

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 unfavorable insurance claims on your property? Good buyers agent will look for these red flags before showing a property.

Overpriced
The number one reason your property is not selling “OVERPRICED”. Every above negative brings down the value of your home a few thousand dollars. You obviously saw value in your home when you purchased 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 analyze online for up to a year before they actually go into a home with an agent. You are not fooling anyone but yourself by supposing that the right buyer will come along and pick up your bill.

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 analysis is hard. But, letting go of old patterns is freedom!