Saving Up Not to Buy...but to Sell

Reblogger Dale Taylor
Real Estate Agent with Re/Max 10 New Lenox Illinois

I knew it was coming and it finally happend in September of 2011, a Valued Seller made the decision to stop paying their mortgage to force a Short-Sale on their home.  I knew it was coming because most of the market evaluations I have been presenting since early 2008, my Valued Sellers have owed more on their mortgages, than what the comparative market analysis multiple listing computer software (cma-mls) has been suggesting as the best list price for their home. 

In so many cases I've had to do a reverse net.  Meaning, I've had to start with what they owed and calculated their additional selling expenses, added them to what they owed to determine the bottom-line selling price they could accept and not have to come to the closing table with money.

Then, I've had to go back and search in the MLS to see if I've missed any recent sold comparables supporting the price they really need to sell their home.  We have such a large amount of homes on the market that have not sold in the Chicago, Illinois area marketplace with such high market-times.  It doesn't help to have a combination of Foreclosures and Short-sales combined making up over 25% of the listings on the market. 

Brenda, below speaks of a new normal occuring in the market-place now.  I must say in over 25 years I never thought I would have prepare my Valued Seller Clients they might have save up some money not to buy!  She shares a sad and interesting challenge she has experienced as well. 

Original content by Brenda Mullen 574299

Saving Up Not to Buy...but to Sell

Remember the days when buyers would save up for a good down payment on the chance to own a piece of the American Dream?  Actually, those days are still here.  There are plenty of buyers saving up to put a decent down payment on a home or perhaps even just have enough to qualify for an FHA loan at 3.5%.  But the new trend seems to now be havingThinking about money to save money so that home sellers can afford to sell their home.

With the market either flat or down in many areas, we find ourselves having to qualify our sellers just as much as we qualify buyers.  Now, this has probably always been a fact of selling Real Estate, but it's now more important than ever.  When I go to a seller's house who has only been in the home for a couple of years, I know that I am going to be more than likely imparting less than desirable news on how much money they are going to have to bring to the table.  There are even some sellers I talk to who have more equity and I am telling them the same thing.  

Many times when I whoop out the old net sheet, this is a total surprise to home sellers that perhaps had the notion that everything would come from the sale of the home.  This could be the case if the home owner has a lot of equity and the market is up in the area.  In this case a seller may pocket some money from the proceeds, but unfortunately, the majority of sellers I have come across lately are not in that situation.  And sure, we could always list the home way above market price and give the seller false hope of "breaking even", but in my opinion, that isn't very helpful to anyone.  

When I heard the words today, "We are going to need to set aside money to be able to afford closing costs", it just struck me as...well...sad.  

Folks used to be excited to save up to buy a home, now they have to save up to sell it.  

Would you like more information about San Antonio Texas Real Estate Market or do you need to buy a home or sell your home in Bexar or Guadalupe County? Call Me, Brenda Mullen Realtor® Keller Williams Realty at 210-807-0819 or send an e-mail at  



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Brenda Mullen
Realtor®, ACRE®, ABR®, ePro®

Keller Williams Realty - Helping You Find Home
10999 IH-10 West Ste #175



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Brenda Mullen
RE/MAX Access - Schertz, TX
Your San Antonio TX Real Estate Agent!!

Thanks for the reblog Dale.  And the sad part that even when you do the reverse net, it still doesn't make sense to put their home on the market as homes aren't selling for that.  Unfortunately it is bring money to the table or do a short sale if you really need to sell. 

If you don't need to sell then wait it out or rent it out. Those are just the facts of many of our Real Estate markets around the Nation.

Jan 23, 2012 09:36 AM #1
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA


It's a sad commentary about where many property owners are today. Those who bought at the peak of the market have nowhere to go. Either they suck it up, or if they have a real hardship and really can't see a way out, at least do a short sale instead of walking away.


Jan 23, 2012 10:17 AM #2
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Dale Taylor

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