Sellers: You Have Got to Face Reality
Many sellers are not facing the reality that their house is worth less than they think it is. Unfortunately, some sellers have financial reasons for “needing” to get more than the market will bear.
I just got an email from a seller in New Jersey who says:
“We are currently listed with a real estated agent, but because of the 6% commision it makes it difficult to come up with a price that works for everyone. We have had two offers. However, they were not the right ones.”
This is what I told him:
You have to face the reality that you can only sell your house for what a ready and willing buyer will pay. How much money you need is irrelevant. (sidenote: I might have been a little blunt here, what a seller needs is not totally irrelevant, but they can’t always get what they need.)
I suggest you go back and see if those people are still interested. Were both offers near the same price? If so, that is about what your house is worth in this market.
If the reason you won’t take these offers is because you need a certain amount of money to move or you owe more on the house than would be covered by the price, you have some options.
If you owe more than the house will sell for (with or without the commission), you can try to negotiate a short sale with the bank. A short sale is when the bank agrees to take less than is owed on a mortgage as payment in full. You may be able to list the real estate commission as an expense to reduce the mortgage payoff amount (or the net) the bank will get.
Be warned, you must show that you have some financial hardship: like a medical condition that cause high bills, or lost your job, or something along those lines, and a short sale can take 1-4 months to complete or more.
If you rejected these offers because you need a certain amount of money to move or buy another house, I am sorry to say that you probably won’t get better offers in this market. But your agent will advise you on that.
Sorry to be so frank, but if you really want to sell you house you must face the realities.
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If he replies, I will let you know what he said.
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