Buyers Don't Give a Crap about How Much Debt You Have
For those with tender sensibilities, I would suggest clicking away to something more...ahem....diplomatic.
However, for those who are not allergic to cold hard truths delivered in street language....welcome to my blog.
Here are 2 hard truths that you, as a potential homeseller, need to come to grips with if you plan on selling your home in this market (and by this market I mean Gainesville, FL....though the following truths apply to many other markets in the U.S. as well):
1) "I need to get X amount out of my house so I can pay off my debts."
Dude. Homebuyers do NOT give a crap about how much debt you have. If you bought your home in 2005, 2006, 2007 -- what I've come to think of as The Magical Years -- you are screwed. Okay? That's the long and the short of it. This is still a buyer's market. With the amount of inventory we are carrying, it probably will be for awhile.
You know those commercials where they say "It's a great time to buy?"
Well it IS a great time to buy.
So let's think about this for a minute. If it's a great time to BUY, what kind of time does that make it for YOU?
If you answered "A completely sucky time"......you are CORRECT!
You cannot price your home based upon how much debt you need to pay off....you have to price your home at the going market rates....and the going market rates are NOT what they were in 2005, 2006, or 2007.
They are LOWER than what they were in 2005, 2006, and 2007.
So please don't yell at your REALTOR(R) when they present you with the pricing statistics of recently sold properties.
Yes, we KNOW you want more for your house.
But you can't GET more for your house than what somebody, a BUYER, is willing to pay for it. And THEIR idea of the "going market rate" for your home is a LOT more important than what YOUR idea of the "going market rate" is.
Why?
Because THEY are the ones bringing the offer. And THEY are the ones who have been preapproved and therefore have the money to buy your home.
And if YOU don't say yes, THEY have lots of other homes to choose from....and, more and more often, these choices include short sales, and bank owned properties, and new build homes that desperate builders are trying to unload on the cheap.
So before you get yourself all up in a knot over a lowball offer, try to remember that these buyers are just doing to you what you are going to try to do to the seller of your next home....and that is, get the BEST deal they can. And in this market, buyers can get themselves a pretty darn good deal.
So you may not be able to pay off all your debt when you sell your house. That's just the way it is.
This is not to say you shouldn't counteroffer. However, keep in mind that a counteroffer means that the original offer is dead....and if you counter, there is no guarantee that the buyer won't have already decided to walk and buy something else instead.
It happens. Not always, but it does. Just something to keep in mind.
2) "But I don't want to bring money to the table."
Who does?
Look. If it makes it easier, just look at your home sale as a case of you going to Vegas and losing your shorts. The good news is, when you do sell your home, you can turn around and lowball the offer for your next house. That's the American way.
Now, if it's a case of you CAN'T bring money to the table, that's a different thing entirely. Some possible options to consider are to 1) not sell, and wait for things to get better; 2) rent out your home and wait for the market to improve; or 3) sell your home as a short sale. REALTORS(R) cannot advise you regarding the most financially feasible options for you and your family. A frank discussion with your accountant or financial advisor will give you a good idea of what your next steps should be.
I'm Coleen DeGroff. And I'm just sayin'.
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