This week I met with a wonderful lady who owns a beautiful home in the burbs of Virginia. When we spoke on the phone and I asked her a few questions; I had an idea this might be tuff; but not having seen the home and doing some property-specific research; I was not sure how tuff this would be.
The owner showed me her home; and told me her goals. She bought this new home at the absolute peak in the market. It is in a part of Northern Virginia; where property values have taken a particularly tuff hit. In fact a HUGE hit.
She then give me worse news. She tells me how much she owes and then insists she needs $25,000 in money; to pay off other debt.
I showed her the comparable sales. These sales of exact properties; on the same street; sold or under contract in the past 90 days. There was no question what the comparable sales were.
In a neighborhood of foreclosures and short sales; there were huge property value losses. Even though her property was in good condition and there would be no banks or repairs to deal with - the value still was no place near where she wanted it.
I explained short sales, options for renting it out, or just staying put. None were options she would even consider.
She said; "Let's just put it on the market and give it a try." The sales price she wanted : $200,000 + over the comparable sales. No, I did not put in extra "0"'s.
I told her I simply couldn't. "WHY NOT?"
Yes; she was angry with me. I simply said that I did not want to waste her time by trying to sell a home that I did not think I could sell. I told her perhaps another agent may know something I didn't (like someone who would over-pay for a home by 1/4 of a million dollars).
I am sure someone will take her listing. Some agent will be desperate enough to take the listing. Then they will try to beat her up about price for months and months until maybe she does decide that a Short Sale is the only way to go. That someone won't be me.
The truth of what price her home should sell for is all I have to offer. I am not about to lead her into thinking there is even a remote chance that someone would give her that price (or that a bank or appraiser would ever - EVER; give a loan to cover it.)
Contact James Downing of the Downing Real Estate Team, if you are selling, buying or have questions! Office: 202-362-5800 Cell: 703.244.3971 Licensed in Washington DC, Virginia & Maryland. Coldwell Banker Residential Brokerage - Chevy Chase
5028 Wisconsin Ave NW Suite 100 * Washington DC 20016
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