I can't wait to go to FL, the northeast is ffffreezing. As for the seller's estimated net proceed worksheet I did receive one of those,it continues to decline in my blank. I know that if we just "break even" we will be lucky. However, do you think we should just price it to break even now,or keep it price right so the lowballers can have fun? I think if we were to price it for what we paid,we would get an offer,but a lowball and would have to bring cash to closing. ??? This sucks!
I don't know the market where you are so I have to defer to your agent. Ask him or her where to price it so that it sells quickly. The spring market is almost upon us and there are more buyers out there.
Look at it this way...you should be able to make up the difference in Florida. Buying is where you make your money in this market.
See here is how i look at it: Our house is on the market for 247k. Someone comes in with an offer of $239k w/ 3% back(7170.00). I am actually selling the house for,after their credit for closing costs: $231830.00 I pay out 4% commission for realtor cost,off the sales price(not including concession of 3%):$9273.20, 3k for my closing costs as well simple math,correct me if I am totally wrong,and need to hire a new realtor: 231830.00-9273.20(realtor commission)-3000.00(my closing..tax/attorney fee)=219556.80.
Everyone gets my damn equity! I am loosing $$,but the buyer gets 7k at closing? A realtor gets 9k to split? And taxes/attorney fees? I know that it isn't ACTUAL money out of my pocket,but it is less than what I am trying to sell my house for,and much less than i bought it for. So in a sense,it is out of my pocket. I do not want to have to show up with a personal check at closing to have to pay my own mortgage off! Do you see what I am saying? I think we are agreeing in a way,but I view it differently as a seller in a buyer's market. When I am buying however, I will try to squeeze as much as possible,without being too greedy. There is only so much you can ask for back when you are purchasing a foreclosure.
You do not have to accept the offer. It has nothing to do with your realtor. If you want more money you can make a counter-offer to the original offer. Drop the 3% cash back. I thought that was illegal now anyways unless it is going towards the buyers closing costs. If they need the 3% you can increase the offered purchase price to the original (or add the 3% to the list price). It all depends on how bad you need to sell your house vs how much you want to make on it.
Does CT require a lawyers involvement in a real estate transaction? (I know they do in Mass., but here in Maine lawyers are not required, and when they are involved it usually slows things down and screws things up.)
Now, if you realtor is not offering these options to you ...
The 3% cash back is a misapplication of the term by Tony. It is a seller subsidy that I'm talking about, that is used to help with buyer closing costs.
Cash back to anyone by anyone under the table isn't legal. If it's in an agreement, all parties are notified and approve, and the payment is listed on the HUD-1, it is legal, but sometimes the lender will not allow it to happen. It depends on the lender.
If a seller negotiates to add money to the sales price to help with closing costs, as a buyer's agent, I'd recommend to my clients that we go elsewhere. Besides, the house has to appraise at the sales price value and adding 3% to the price to help the buyer can backfire. The sales price could be renegotiated upon lower appraisal or the buyer has the option to void the contract. Another thing to consider....factoring in 3% in sales price to help with seller subsidy can have an affect on showings/offers if the price is out of line with comparables. As a seller these days you need to be thinking of these costs: realtor fee, seller subsidy assistance, and your own closing costs, which can add up to a lot.
I'm giving advice based upon a buyer's agent perspective. I'd offer much different advice if I was representing the seller.
I said it right,credit for closing costs. $ in which the buyer uses for their closing. Here in CT we say buyer concessions for the most part. As for when I said "cash to closing",in another post... I meant it being that we might have to bring our own money to closing if need be to pay our mortgage off if we were to accept an offer(a lowball w/ seller subsidy). I know we don't have to accept dittily squat,but we are also on a time table as to when we need to get out of here. That might be our only option,if this thing sits on the market for a yr or so.
What advice would you give a seller? Since you stated that the advice would be different. Would you tell them to put your house on for what you think it will sell for,and offer the 3% "seller subsidy" right off the bat in the listing? Or would you be ahead of the curve(the wicked downspiral we are heading into),listing for a little more than you think it will hit ,and wait for them to put in an offer and use the seller subsidy as a bargaining technique?-note your seller has time to play around,we don't have to be out of here and reporting to FL until this summer. Our realtor is great,however,i call him everyday with different scenarios.(prob driving him nuts) I like to hear what other realtors and other homeowners do in a market like this. This is our second home we have sold in 3yrs,its a different market-a f'd up one. When we move to FL I want to live there foreverrrrrrrrrrr. This crap is for the birds! Oh,and just to add.....I got a letter from USAA (who we are preapproved through) saying that they are informing me of the price drops in FL,and since it is dropping so bad,if the appraiser thinks the price we purchase a house for will go down a tremendous amt while we live in it,we might be looking at more money down on our Mortgage! Mind you,we are telling them that we want to put down near 20% (depending on the sale of our home) Needless to say,I am looking at other companies. B/c if USAA can't offer a military family with excellent credit and minimal debt,and a SECURE JOB a daggone mortgage at a decent %...then we shall keep searching elsewhere. WTF-it never ends i tell ya. Money here,there,everywhere,except for in our pockets. I am using my stimulas package for a stimulating weekend of vodka on the rocks when this is all said and done with. crapola
Tell him you want to look at all of the comparables in your neighborhood in person. Both you and he should be taking notes, good and bad with each listing and stacking it up against your house. You also will need the "solds" over the last couple months so that you can compare it with the actives you two are going to preview.
You may find that the active prices are well above the solds. If that is the case, price to the market, i.e. the last couple of comparable solds. If the active prices are reflective of sold prices then you should have, after previewing those other properties, know who your direct competition is, and price to match him, or stay a couple of thousand dollars under him.
If you price to the market, as I suggest, you will also need to look at the seller subsidy for each and be prepared to give that. If you find solds have no seller subsidy your agent can easily defend that if an offer comes in asking for it.
Your agent needs to watch all prices and you need to adjust to stay under your closest competitor. Eventually either you or the other will sell. You need to preview every new house that comes on and adjust accordingly.
By the way,my name isn't "Tony"...I am tony's hag. ha! That has already been done,what you quoted above. Again,I just like to see what others suggest. Like I said,we are priced ahead of the curve(falling prices), priced to sell. It is just a waiting game from here on out. It has been a swinging door recently, at least we have traffic. Thanks for all the info
About the mortgage company. I have searched around and interest rates are coming up still. 1/8 they came up over a matter of a week. I am talking with what is called a wholesale broker. They "claim" they can get me the lowest rate. However I got an estimate(one on the high side) to see what my closing costs will be if I work with them. Now I am comparing that to what I hear everywhere else, and making sure I get the best deal. What a headache. Has anyone ever used a wholesale broker? I am sure with what interest rate they can get me without paying points, I will make up the difference by paying more closing costs. Seems too good to be true.
