Is it advisable to lower the price on my house to below market value in order to get it sold fast even though ?
Saturday, January 30th, 2010 at
12:43 pm
we still owe $19,655.25 on it and are planning on using the same lender to purchase another house in our town. Could someone advise me on what I should do? I would like to go for a short sale, but can’t unless someone makes an offer. Could someone help?
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Tagged with: House Value • Short Sale
Filed under: House Sale
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You appear to be confused on a couple of points.
Sure, you can lower the price below market value to sell it faster. People do that all the time. If you’re below the comps, and your house is aggressively marketed, it should sell pretty quickly, even in today’s market.
However, a short sale will make it impossible for you to purchase another home. In a short sale, you’re selling the house for less than you owe. Your lender is coming up “short.” Therefore, your current lender must approve a short sale. And you’re going to have to show hardship, generally financial hardship, to persuade the lender to grant the short sale. So: You’re pleading financial hardship, and the short sale will ruin your credit. There’s no way any lender, much less the same one, will lend you money to purchase another house.
Hope that helps.
Only you can answer: Are you willing to lose money on this house to get into another house? If so, how much? If not, can you be happy staying in the house you have?
If you seek to sell the house below the loan value i.e. short sale, you will not be eligible for another mortgage for some time in the future
It sounds to me like you are asking a lot of questions that your agent should be answering for you.
If your agent isn’t doing his job, find another agent who will. If you are trying to sell it yourself, you are making a big mistake, and you should realize by now that a professional is what you need.
As others have said, your real estate agent should be doing some of that advising for you. The one thing I would say though, is you owe to yourself to get as much for the property as you can. A few thousand could make all the difference to you.
So forget your agent for a minute, and look at what you can do to get as much as you can for the house. Then if that doesn’t work, perhaps look at reducing the price. The only reason I say this is because a relative went through something similar and held out for (and got) more than other people told them they could expect.
It does depend a bit on how many viewings you’re getting (although I firmly believe that you can improve the amount and quality of your viewings by being positive in your advert). Once you get people through the door, a little enthusiasm goes a long way. Combine this with a bit of acting – “Well, the couple who were here earlier seemed very keen…” etc.
Like I say, I would take steps to try and get as much for your house as possible before reducing it for less than it’s worth.