Posted by Rich-CA on October 22, 2007 at 11:40:21:
The loan amount has nothing to do with market pricing. Market pricing is set by a BUYER not a SELLER. Without a buyer you have no sale.
The term “upside down” means that an owner owes more than a property is worth on the open market. If you are priced exactly at what is owed and there are no offers, then the property is currently upside down and would only be able to be sold via short sale - where the sale price is less than the amount owed and the lender agrees to take that and forgive the rest.
I am in Portland Oregon and I am an investor, with two houses currently just sitting on the market. One is in outer Portland and is priced at $195,000. I am trying to assist the seller in two ways, we can’t purchase the property so I was attempting to submitted a short sale package to the bank while simultaneously marketing it on the market it needs about $10k worth or repairs. It has been on the market since the beginning of September. At this point is it better to list it with a real estate agent before the December auction. Deal # 2 is also in foreclosure and the owner said they would be willing to short sale it but want to walk away with $5k asking price $299,900. The house next door has been totally update and is on the market for $300k. This house has 1,640 square feet and recently has had new siding, windows, and roof. I have sold four houses and bought one myself. What am I suppose to do? I am still a newbie, does anyone have a suggestion
Re: Houses that aren’t selling-what next - Posted by Natalie-VA
Posted by Natalie-VA on October 22, 2007 at 15:43:42:
If you can’t purchase the property, why do you have it tied up? This seller appears to be headed for foreclosure, and you are opening yourself up to liability IMO. I’ve seen many people end up in foreclosure because someone put their house under contract and couldn’t follow through. You can help them by releasing them from the contract.
Deal #2 has zero equity and a seller who wants you to commit fraud. Drop him.
Sorry to sound harsh, but these are not deals you should be spending time on.
Re: Houses that aren’t selling-what next - Posted by Rich-CA
Posted by Rich-CA on October 21, 2007 at 21:51:11:
Do you have access to MLS? If so, find out what prices the recent sales and pending properties are selling for. The asking price is meaningless if it is outside the range people are actually paying. If you want to sell, lower the asking price within this range. Check out the condition of other houses in this price range and make sure your house is at least noticeably better than the norm.
If you can’t get the price into the selling range, you will not sell it. Need and a seller’s wishful thinking do not determine sales price - buyers do.