An offer has been made for $10,000 less than what I bought my house for. In the Michigan economy, this is not suprising. If I take it, I will break even on what I owe, but have to pay the realtor fee and transfer tax. This leaves me with having to take a check to closing, but also the possibility of having to take out a separate loan to cover the difference. What sort of loan can help me do this, or should I hold on in anticipation that I can put more equity into the house. I'm not anticipating that the home will go up in value, but I am hoping that it will at least stay the same in three years.
2007-01-24 15:08:21 · 11 answers · asked by Tr0nik 2 in Business & Finance ➔ Renting & Real Estate
Thanks everyone; I hope you understand the situation in Michigan. It's just not like the rest of the US. This is the poorest economy in the Union and there is a general loss of people every year due to the auto industry fallout.
2007-01-24 15:20:06 · update #1
I've heard of the declining prices in Michigan due to the closing of the auto plants; this is a major issue that will decrease property values. It's a tough call because you are losing money and run the risk of the value decreasing more over time. If there are limited jobs then you have limited potential buyers. If you feel property values will increase to cover your mortgage owed in a few years and you can wait then I would wait to sell. If not I would sell now before you potentially could lose more money. Good Luck!
2007-01-24 15:30:26 · answer #1 · answered by tianaramal 4 · 0⤊ 0⤋
An offer is just that.
Has your Realtor suggested countering that offer? Does the Realtor anticipate the value to increase? These are things they should be educating about - as part of their service in representing you.
As a Realtor, it would be difficult for me to suggest that you accept the offer, knowing it is not covering your costs; at a minimum.
If you are not in a situation where you absolutely must sell now, I would wait or consider renting it, if you have to be elsewhere.
Appreciation of the property should occur, but I'm not familiar with your area, market conditions, etc. If you overpaid when you purchased, that can be a factor & awhile for you to yield the appreciation you'll need.
It is a buyer market currently. Not knowing how long the property has been listed for, other offers, etc. it is difficult to pinpoint the exact reason for such an offer.
Counter their offer- you have nothing to lose.
I would hold off, if possible.
2007-01-24 15:27:59 · answer #2 · answered by ☼High☼Voltage☼Blonde☼ 4 · 2⤊ 0⤋
As some of the other Realtors here may know that REFERRALS keeps us ticking as well as hitting those open house during the week for free food. hahaha. If you REALTOR does not look into your best intrest or advise you on the complications than you dont have a good REALTOR. Yes he/she has to present you with the offer but at the same time really get your personal opinion on whether you really want to do this transaction or not. If you need to get out of the house because of financial reasons than maybe its ok for you to take some money to closing. But do you think possibly your REALTOR could ask for a lower commission or possibly do you think both REALTORS could ask for a lower commission so you can just break even? Crunch the numbers and stay at that number without hurting yourself too much.
2007-01-24 15:58:24 · answer #3 · answered by Openthathouse.com 4 · 0⤊ 0⤋
TrOnik, Winter most often is never a good time to sell a house.
Predominately, Winter is a buyers market, not a seller market, because most people are not seeking to move or even to change their place of employment during the Winter.
The best time to sell you house is in the Summer. Obviously, most schools (elementary, middle and high schools) are closed during the Summer, which opens a wider door for parents to move their family. Also, most people graduate with their degree from a university (in the Spring) and they will begin looking to buy a home in the Summer.
Both of the above open the door for more people to buy your home during the Summer.
As a result, is it possible for you to hold off (just for 5 months) on your current offer and wait for a better offer? You will definitely receive one in a more favorable time during the Summer.
2007-01-24 15:37:41 · answer #4 · answered by Stay 3 · 0⤊ 0⤋
I wouldn't accept the offer. Can you make a counter-offer just a little higher to cover you for fees and such? If the offer is final, I would say no and try and improve the property cheaply with a fresh coat of paint, try putting some plants around inside, and mirrors too, if it's a small house. Good luck!
2007-01-24 15:16:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It's a buyer's market right now. If you can wait, I am sure this will change. Otherwise, maybe you could counter offer that the buyer pays the fees. Good luck!
2007-01-24 15:17:44 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It's finally a buyers' market. Now is not a good time to sell. Even if you make upgrades, the price of your home will depend on the value of the neighborhood.
2007-01-24 15:16:37 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Usually real estate increases in value even if you do nothing to it for 3 years. Unless you over-paid when you bought it, you should be able to come out of it with something. Have you tried E-Bay? People DO sell houses on there
2007-01-24 15:14:27 · answer #8 · answered by Anonymous · 0⤊ 2⤋
You will have to do something to make the house look more appalling to people add a coat of paint or something. But I would sell for less then i payed for it. You will be in the hole. Wait until another offer come along.
2007-01-24 15:13:24 · answer #9 · answered by Peaches 2 · 0⤊ 2⤋
IN Michigan if you can walk away be glad.
Sell or dump now if you can.
http://www.breakingbubble.com/index.htm
If you try and hold out it might be less painful if you take a hammer to your foot.
Best of luck
2007-01-25 03:27:32 · answer #10 · answered by Anonymous · 0⤊ 0⤋