In certain situation, when a seller reduces the price to sell their home, It can be a win win for everyone. One particular case, the seller paid $340,000.00 for their home 8 years earlier. The home was listed at $1,150,000.00. The seller had also taken out lines of credit for $242,000.00 and had refinanced the original $300,000.00 loan to $550,000.00. When an offer came in at $1,000,000.00, the seller immediately said, I'm losing $150,000.00. Is he really? of course not. He's still gaining $660,000.00. We as Realtors need to let our sellers know that a buyer is not responsible for paying back a loan on money they have already taken out of their home. This seller was also looking to buy another home, in which he also made an offer less than the asking price. The seller wanted to put a higher down payment therefore wanting to sell the home for more. Fortunately, we were able to come up with a win win. The seller did sell the home for less than asking and also got into his new home for less than asking. Once the seller actually saw how much money he had already taken out of the home ($452,000.00) and what he was netting, saw the value in his original purchase and the purchase that he was getting into. Although we understand that a seller wants to net the highest possible amount, sometimes they need to look at the whole picture. If a seller is making a purchase and has a ready, willing and able buyer for their home, that's what needed for them to move forward. When a seller insist on not reduces a price to fair market value, (which is what a ready, willing and able buyer is willing to pay) then, he's already go the best buyer. Himself. They always have a choice to stay.
Comments(1)