Could you sell for half price?

Could you sell for half-price?

Remember playing Monopoly? "Do not collect $200!" became a household phrase. Sometimes, towards the end of the game, you might have sold a property to another player for half-price just to raise some cash.

In real life, you would never accept half-price for your home - or would you? What if you owed $88,000 on a home you wanted to sell for $100,000?

Now what if a prospective buyer offers to buy it at a discount of 6 percent off the asking price? Although you would like to receive the full asking price, you accept. You've just sold your house for half-price!

How's that? Your equity - the difference between the sale price and what you owe - is what you receive at closing. It can easily slip through your fingers at the hands of a buyer who is good at negotiation.

Allowing that 6 percent discount ($6,000), you are selling for a price of $94,000 while you still owe $88,000. That means you will receive $6,000 cash in hand at closing rather than the $12,000 you had anticipated - half-price!

Perhaps the most valuable role played by real estate agents is that of negotiator. When you list your home, you empower the agent to represent you in any negotiations that take place. Expect the best from your agent and reap the financial rewards.

Larry Weichman is president/broker for Costa Mesa-based Weichman Realtors. Direct your questions to Larry@WeichmanRealtors.com or call 714-444-4663.