No one wants to sell at a loss, but many people in the Twin Cities and surrounding areas are facing this decision. I am re blogging a fair example of what could happen when selling.
While I truly wish no one ever had to ask this question, some of you are wrestling with it right now. Homes are staying on the market longer than in years past and many sellers are having to come down on their price more than once to get the deal done.
Other sellers are standing pat on their price, hoping that the market will rebound enough for them to turn a small profit or at least break even. The problem is (as shown on the chart I posted a few weeks back) that prices still have not bottomed out in some areas and many sellers are facing the reality that they’re better off selling at a loss now than selling at even more of a loss later.
Most first bids are low-ball bids and most sellers are put off by them. It’s important to assess your own situation and determine if you should come down on your asking price and meet them in the middle.
No one likes to come down on price, but consider this scenario. A friend of mine has a relative whose house has been on the market for just over a year. It is a married couple. Their mortgage note is $2,000 per month and they’ve had to lower their original asking price by $20,000. Recently they got an offer that is $10,000 lower than the current asking price (i.e. $30,000 lower than the original price).
The house is in that in-between price range that's not inexpensive enough for bargain hunters and not expensive enough for high-end house hunters, and this offer is only the 5th they've received. They countered with an offer to meet the buyers in the middle and, thus, only lose $5,000 more instead of $10,000. They're waiting for a reply.
The couple is facing the reality of losing $25,000 on the house and having to take out a loan for several thousand dollars just to close the deal. The temptation is there to wait for a better deal, but what you have to factor in is that they've paid over $24,000 in mortgage since the house was put on the market and now the financial and emotional pain are coming to a head. If they hold out for a better offer, how many more thousands of dollars will it cost them...and will the next offer be even lower than this one?
Every scenario is different, but once your home has been on the market for many months (especially a year), don't forget to look at both sides of the equation. A good real estate professional will work with you on the pros and cons of all sides of the decision.