Need To Sell House... Should I Auction? - Posted by Jennifer G.

Posted by anne on November 19, 2006 at 11:10:55:

Have you read “How to Sell your Home in 5 Days” by Bill Effros. He has a procedure for selling on your own for the highest value today, offer in place in a weekend. Then, if not high enough, perhaps working out a short sale with your bank for the offer amount would be a way to go. Good luck/

Need To Sell House… Should I Auction? - Posted by Jennifer G.

Posted by Jennifer G. on November 15, 2006 at 17:21:31:

My primary residence needs to go quickly.

It’s in pristine condition, excellent neighborhood, but due to downturn I now owe more than what comps in area compare to. Been on market 7 weeks, a long time for this area (S.California). Already slashed price 45k last week.

Is an auction a viable way for me to sell? What kind of loss should I expect?

TIA to anyone who can help shed light!

Re: Need To Sell House… Should I Auction? - Posted by Ron M

Posted by Ron M on November 17, 2006 at 23:11:46:

Jennifer,

Try selling the property by owner rather than through an agent. You can lower the Price as far as possible by not having a commission added. Use the Internet to show photos of the property, have a professional yard sign and run consistent Sunday newspaper ads.

If you start falling behind, do everything possible to avoid foreclosure. Go back to one of the investors and propose that they Short Sale your property with your lender. Make sure the lender agrees to no recourse against you for the deficiency they agree to. This is a way to walk away as gracefully as possible. Is it good? No. But it may be your best option.

Best Wishes,

Ron M (WA)

Re: Need To Sell House… Should I Auction? - Posted by Gene

Posted by Gene on November 16, 2006 at 23:22:03:

If you sell it in an absolute auction there is no good way to predict what you will get.

Re: Need To Sell House… Should I Auction? - Posted by Clare Z

Posted by Clare Z on November 16, 2006 at 19:55:26:

Why are you selling if you don’t mind my asking. Can you not afford it or are you just upset about the equity? The equity will take care of itself soon enough. Just curious.

Re: Need To Sell House… Should I Auction? - Posted by Kasaundra

Posted by Kasaundra on November 16, 2006 at 16:04:42:

Have you thought of selling it to an investor subject-to the existing financing? You are just trying to get out, right? Since you owe more than it’s worth, I would think that avenue might be good.
I’m not familiar with your market, though…

Re: Need To Sell House… Should I Auction? - Posted by Jennifer G.

Posted by Jennifer G. on November 17, 2006 at 24:09:27:

Hi Clare,

I can no longer afford it. Loss of income. I am underneath this house and need to stop the bleeding.

Re: Need To Sell House… Should I Auction? - Posted by Gene

Posted by Gene on November 16, 2006 at 23:20:03:

>>>The equity will take care of itself soon enough.>>>

Are you suggesting that the market will soon recover and start appreciating again?

In what time frame are you expecting this to occure?

Re: Need To Sell House… Should I Auction? - Posted by Jennifer G.

Posted by Jennifer G. on November 17, 2006 at 24:19:21:

Just from talking to a couple investors in my RE club, it doesnt seem that any worth their salt would buy this house for more than 75% of the value, and with the current downturn some are looking for 50%. I just can’t afford to go that low.

The current note is higher than what I can realistically command in rent, so there’s no money to be made for an investor, at least not that I can see without screwing myself.

I heard there are auctions that the seller doesnt have to take the offer and where you can determine the lowest price. Has anyone had any experience with this in selling their own property? Or is it just a bad idea?

Re: Need To Sell House… Should I Auction? - Posted by Kevin - WA

Posted by Kevin - WA on November 16, 2006 at 19:29:14:

Kasaundra,

I am missing something on this strategy. What is in it for the investor to buy Jennifer’s house Sub2 if there is negative equity?

Thanks,

KLM

Re: Need To Sell House… Should I Auction? - Posted by Clare Z

Posted by Clare Z on November 18, 2006 at 09:44:19:

Aha. Well that’s different. When I said the equity will take care of itself, I did not mean in the next 6 months. I meant if you hold a property long enough, the equity grows, even if only 7% or so a year - buy and hold theory works over the long run always. But, negative cash flow is a different story.