OR: What Hurts More, A Short Sale or One Where There's Still Equity But You Have Lost A Lot
This morning my husband opened up an envelope with information about his stock options. He looked at me and said, “Do you want to buy a new car?”
My answer was of “Of course not.” He then explained we'd just lost $50,000 in value from his stock options.
My response? “Don’t be so greedy.”
We are both working, our mortgages are almost paid off on the house and rental properties, and the stock options are like dessert, nice but not essential. However, it was painful to him to lose that much money on paper.
It made me think of my latest clients. Some have lost all equity and if they have to sell it will be a short sale. By the time they get to me it is gone, and they do not seem to be concerned about the price as much as the process. Others who are losing equity when they sell seem to fall into 2 categories: those who are grateful to be able to sell and those who are fighting for every penny and do not seem to see the value in taking an offer to make a sale if it means losing a little more money.
If you are a buyer then your life will be much easier if you can find one of the former sellers. If you are working with a seller who is emotionally invested in every penny they are losing it will be a much more difficult sale.
If you are a seller it is important to clearly understand your goals when putting a home on the market. If you only want to sell at your price, then if your price is market value, you may get it. But if your price is above market, it won’t sell. Period.
The most difficult part once you understand your financial choices is overcoming the emotional ties to a particular number. If you want 1.5 million and you only get 1.4 million and life can go on, can you let go of your emotional attachment to to 1.5? If not, this may not be the best time for you to sell.
It is no different if you want 400K and you can only get 380K. If your life can go on with a lower price and you need to sell, you may have to eat the emotions. If you are just testing the market, don’t bother. In this environment you will fail. If you focus on your need and not your want you will get to your goal of selling a house much quicker and easier.