As many of you know, homes are sitting on the market longer. More people are experiencing their listings expire or being on the market for a year or more. To combat that, I and other Realtors®. ask for sellers to consider the low end of a suggested listing price or a price reduction. So often that idea is met with resistance to our suggestion. I understand the many reasons that it sounds like such an unthnkable request but I'd like to explore some other variables with you. Please, stay with me on this one.
Now if you do not have to sell your home, this may not apply. I'm writing this blog to those people who either found themselves transfered or purchased another home before the one they were living in sold and now find themselves with two homes. That usually means two mortgage payments, two sets of utility bills, two homes with insurance, two homes to pay taxes on and two homes that require up-keep of some sort. This can become a drain on your financial resources as well as time resources. Most people can endure this situation for a couple of months but as time goes on it usually gets harder and harder to bare.
Let's talk about the financial side for a moment. Let's say the mortgage on the 1st home is $1000 a month. And the taxes and insurance cost about $150 a month. Then let's add some utilities which maybe lower than usual because you're not living in the home and using as much. So maybe in the summer you pay $30 but in the winter that goes up because you live in a colder climate and the heat starts to cost you. Let's say they become $80 total a month. Now for the sake of arguement, let's say you yourself keep the grass cut, leaves picked up, and snow cleared yourself. So there's no out of pocket cost, just your time. So let's add these numbers up. . .that means each month this example home is costing $1260 and you're not even living in the house! The house sits on the market for six months and still no sale. So now that figure becomes $7560. And what happens if you have some kind of repair that happens while it's empty? (Now if you're listed with me and have taken the Home Warranty you'll be covered, but that's going to be another Blog soon regarding Home Warranties) In Indiana our winters can get cold. It's suggested that empty homes be winterized to reduce the risk of water pipe breakage. Just one more item to worry about. . .And what if you live out of town?!?!?
If homes are taking longer to sell (read this in the paper and hear if on the news) and listing at top dollar means you are going to wait 6 - 12 months in an attempt to get your listing price, wouldn't it be wiser to consider the lower end of the market analysis suggested price? If the high end is $150,000 and it's going to take at least six months to sell and your payments during that wait are going to be $7560, to save yourself the worry and time what if you listed it at $142,000 from the beginning? For each day that you still own that house, it's costing you money. I'm using generalizations and each neighborhood and area has to be considered yet in today's market it's a known fact that homes are taking longer to sell in general. The ones that sell quickly are usally priced at the lower end or below and/or have a lot to offer the buyer. (You also need a realtor with an aggressive marketing plan, but yes, that's another blog in the future.) So is taking the lower price really a loss when you look at it this way?
Well that's some food for thought. . .If you have a comment or would like to know more, please visit my website at http://www.cyndisloop4indyhomes.com/.
Comments(0)