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Started By
Message
Got an offer on my house....but below value of mortgage balance, feedback needed
Posted on 10/7/11 at 11:01 am
Posted on 10/7/11 at 11:01 am
Serious feedback would be helpful for my situation.
Just a received an offer on my house I no longer live in.
It is 10k net less than asking price, which is also 10k less than the balance of my mortgage.
So if I sell as is, lose down payment + 10k toward mortgage. I think i can possibly counter and recoup 5k, but not much more.
I have also looked into property management services route, and this would yield a break even on rental income vs mortgage payment.
Should I just cut my loses and fork over the 5k-10k? Or rent this house for a year or so and try selling again??
Thoughts?
Just a received an offer on my house I no longer live in.
It is 10k net less than asking price, which is also 10k less than the balance of my mortgage.
So if I sell as is, lose down payment + 10k toward mortgage. I think i can possibly counter and recoup 5k, but not much more.
I have also looked into property management services route, and this would yield a break even on rental income vs mortgage payment.
Should I just cut my loses and fork over the 5k-10k? Or rent this house for a year or so and try selling again??
Thoughts?
This post was edited on 10/7/11 at 11:03 am
6
Posted on 10/7/11 at 11:14 am to wegotdatwood
What is your payoff?
Posted on 10/7/11 at 11:16 am to tiger9876
Payoff is 190k.
Had to move for family/personal reasons.
Had to move for family/personal reasons.
Posted on 10/7/11 at 11:18 am to Drilltiger
quote:
Thoughts?
You are exhibiting the strong bias of "anchoring".
You need to forget about what your equity once was or "breaking even" on the mortgage. Mr. Market is harsh and he doesn't care at all about that.
You need to figure out the highest price you can get for the place. If that's palatable, then sell it and accept the economic consequences.
If it's not palatable, then you could look into other options like a short sale - which could save you some money, but which will also impair your credit.
Posted on 10/7/11 at 11:21 am to Drilltiger
This is of course a decision that ultimately only you can make.
However you have either a rent payment or mortgage payment that you are paying now, plus the one on the house you are asking about. THe big question is how long could you continue to pay the note on the house waiting for something better to come along? Yes you could get more money perhaps later, but if you can get the offer up 5K where you are short 5K at closing, you would have to consider it. However a few other considerations are you will owe the 5K at closing, plus realtor commission, so you need to make sure you have the funds to pay at closing if you take the offer.
However you have either a rent payment or mortgage payment that you are paying now, plus the one on the house you are asking about. THe big question is how long could you continue to pay the note on the house waiting for something better to come along? Yes you could get more money perhaps later, but if you can get the offer up 5K where you are short 5K at closing, you would have to consider it. However a few other considerations are you will owe the 5K at closing, plus realtor commission, so you need to make sure you have the funds to pay at closing if you take the offer.
Posted on 10/7/11 at 11:32 am to Da Hammer
I agree, it is a decision for only me. With inability to know what the market will look like down the road, maybe this is the highest price I can sell the property for, it may go downhill from here, who knows.
I guess ultimately I feel this buyer is getting a steal and not excited by that. However, this is something I have to deal with and hopefully I create a gain when I buy my new house.
I guess ultimately I feel this buyer is getting a steal and not excited by that. However, this is something I have to deal with and hopefully I create a gain when I buy my new house.
Posted on 10/7/11 at 11:33 am to Da Hammer
Not that it doesn't suck to lose 5-10k, but if it makes you feel better, I have a condo listed for a guy who paid 360k in 2008. We are asking 240k for it and it's been on the market almost a year.
Posted on 10/7/11 at 11:34 am to ItNeverRains
Go on vacation and have your buddy burn it down, collect the insurance.
Posted on 10/7/11 at 11:55 am to ItNeverRains
quote:
We are asking 240k for it and it's been on the market almost a year.
Why hasn't the price been lowered and/or been converted into a short sale?
Posted on 10/7/11 at 12:11 pm to Drilltiger
damn buyers market
same thing happened to us a couple of months ago except they offered 40k less than asknig price. They also wanted 10k so they could fix one of our bathrooms up. My realtor kindly told them to f off.
thought about renting and started looking into property mgrs and such.
[quote]Should I just cut my loses and fork over the 5k-10k? [/quote
maybe look at what you would lose in paying for the rest of the year vs what you would lose accepting their offer
but, also have you negotiated another price? Come back a little more than half way?
same thing happened to us a couple of months ago except they offered 40k less than asknig price. They also wanted 10k so they could fix one of our bathrooms up. My realtor kindly told them to f off.
thought about renting and started looking into property mgrs and such.
[quote]Should I just cut my loses and fork over the 5k-10k? [/quote
maybe look at what you would lose in paying for the rest of the year vs what you would lose accepting their offer
but, also have you negotiated another price? Come back a little more than half way?
Posted on 10/7/11 at 12:12 pm to Tiger JJ
quote:
Why hasn't the price been lowered and/or been converted into a short sale?
Doesn't owe 240 on it, nor wants to do a voluntary surrender. We started at 255k, but the seller has the final word in what the sales price will be. We feel like Nashville has finally bottomed out so it's just the way it is. Had a 650k list price go for 450k a few weeks ago. It hurts.
Posted on 10/7/11 at 1:14 pm to ItNeverRains
So, I have direct experinace in this. We live in FL were houses are worth...well, not much anymore.
Agree with the poster that says to cut your losses. The market doesn't care about anything but what the house will bring, not what you or an agent think it is worth.
We had an oppurtuntie (sp?) to "upgrade" to a nicer house but in order to do so we had to sell our house at a pretty big loss (yeah FL) and I had to bring cash to the table to close (around the same as your amount, though "paper loss" was a lot more).
My 2-cents is...
1. Get an real estimate on the home value. Pay the 200-300 bucks and get an esimator out to let you know what it will sell for, not what you or the agent thinks. Don't wait for the one during the closing process. Trust me, worth the money.
2. If the offer is anywere close to that, take the money and run in this market.
We did above and it was a slap in the face to relize what the market thought our house was worth.
That being said, best move we made. LOVE our new place, got a 30yr fixed ln @ 3.99 and nicer house, neighborhood, etc...
Just SUCKS to lose $ and bring cash to the table to sell.
Good luck. Been there, not a fun place to be.
MH
Agree with the poster that says to cut your losses. The market doesn't care about anything but what the house will bring, not what you or an agent think it is worth.
We had an oppurtuntie (sp?) to "upgrade" to a nicer house but in order to do so we had to sell our house at a pretty big loss (yeah FL) and I had to bring cash to the table to close (around the same as your amount, though "paper loss" was a lot more).
My 2-cents is...
1. Get an real estimate on the home value. Pay the 200-300 bucks and get an esimator out to let you know what it will sell for, not what you or the agent thinks. Don't wait for the one during the closing process. Trust me, worth the money.
2. If the offer is anywere close to that, take the money and run in this market.
We did above and it was a slap in the face to relize what the market thought our house was worth.
That being said, best move we made. LOVE our new place, got a 30yr fixed ln @ 3.99 and nicer house, neighborhood, etc...
Just SUCKS to lose $ and bring cash to the table to sell.
Good luck. Been there, not a fun place to be.
MH
This post was edited on 10/7/11 at 1:18 pm
Posted on 10/7/11 at 1:42 pm to St. Pete Tiger
quote:
1. Get an real estimate on the home value. Pay the 200-300 bucks and get an esimator out to let you know what it will sell for, not what you or the agent thinks.
A CMA will do the same thing, minus $300. I can't imagine an agent not doing a CMA before accepting a listing from a client.
Posted on 10/7/11 at 1:47 pm to Drilltiger
I'm in the same boat, almost to the dollar.
Sell, sell, sell.
Good luck.
Sell, sell, sell.
Good luck.
Posted on 10/7/11 at 1:49 pm to Drilltiger
Cut your losses and sell. You can't think of it in terms of how much money you put into it. Think of it as selling a used car (instead of a house) if that helps you mentally.
Posted on 10/7/11 at 2:11 pm to Ric Flair
quote:
Go on vacation and have your buddy burn it down, collect the insurance.
^ Problem solver.
Posted on 10/7/11 at 2:44 pm to ItNeverRains
quote:
but the seller has the final word in what the sales price will be
I guess I just never understand why listing agents accept listings like these. The only plausible answer must be that it just doesn't cost you much time, right?
Posted on 10/7/11 at 3:39 pm to Tiger JJ
quote:
I guess I just never understand why listing agents accept listings like these. The only plausible answer must be that it just doesn't cost you much time, right?
Just moved from 255 to 240. Identical unit just went in 220's on 3rd floor, ours is top floor. It'll sell in the 230's.
Posted on 10/8/11 at 2:29 pm to Tiger JJ
quote:
You are exhibiting the strong bias of "anchoring".
You need to forget about what your equity once was or "breaking even" on the mortgage. Mr. Market is harsh and he doesn't care at all about that.
You need to figure out the highest price you can get for the place. If that's palatable, then sell it and accept the economic consequences.
This. 1000x this.
If you truly want to sell the place, then accept the highest offer you can get. What you paid for it is immaterial.
I can give you a personal anecdote. I made the colossally horrible decision of purchasing a home in late 2006, and had to move 2 years later due to work.
Soon after listing it, I was offered a 'lowball' price 30% below what I was asking. Never got another offer until 18 months later, when I sold the house for BELOW that lowball price.
Cut your losses and sell the house.
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