Selling Real Estate in Pembroke Pines Florida is confusing enough these days and to make matters worse is getting a client who is attempting to sell the property that is worth less than they paid for it...but which direction should they take?
It all started 8 months ago. I have a tough listing that I picked up long ago. The seller knew me from my marketing. Normally I would not take this property but he only wanted me to list their ""property for sale." I explained to him the price ranges and gave him the best comparables I could find. Unfortunately "the market seems to have gotten worse before it is going to get better" and the problem is they owe more than it is worth. I explained this to them and they had said they were willing to price it above the search threshold I recommended.
They currently owe just about what the house could sell at...but they would still have to come up with about 35-40k to pay all closing costs and commissions. It is an even tougher situation as the sellers are now divorced and although they are on friendly terms...they want to move on. They also have an apartment that they are drawing equity from so they can compensate the money they do not have to pay bills. I asked them if we could get a price close to the appraised value would they listen. They would but I explained that they would have to borrow money to cover the 35-40k they would need to bring to closing.
I also suggested renting the property but they are not sure about this as the rents they can command would still not cover the expenses they pay out. I told them the heart wrenching last resort of going into foreclosure and negotiating a short sale. They are still not willing to do this unless it is a last resort. The real problem was when they purchased the home it appraised for about 30K more than it is worth now. They had a new appraisal completed and if they were to refinance they would still be below what they need to cover. Plus their closing costs would also make it not worth doing.
I mentioned this other property they own and I told them to see if they could draw the equity and put it on the side so we can sell the problem home and he could get out. He might consider this but I am not sure if that is the best idea. This is a tough situation as I really do not want to abandon them and they are very nice people and really want me to sell it but the obstacles make it difficult for all.
I wonder what other solutions they might have.