So this afternoon I had a conversation with my agent and I asked him to be brutally honest with me. He advised that at the price I'm asking, potential buyers are expecting to see new paint with brand new flooring throughout. I'm not prepared to spend the money - in reality I don't have either the savings or sufficient credit to pour a bunch of money into the house in the hopes that I'll make at least a portion of that back. So tomorrow we'll do up the paperwork to cancel the first listing and set up a new one at a much reduced price.
A close friend recently had her home appraised, unfortunately because of an impending divorce, and her home was appraised at the amount I currently have mine listed. But her home is bigger, has a large yard, and has new windows and doors, in addition to other updates. That was the eye-opener for me as I had to realize that I won't get out of this house what I've invested in it. In fact the new asking price will be several thousand less than I paid for it in 2010. Sadly, because of the glut of properties on the market and that I haven't been able to invest as much as buyers would expect the value simply isn't there.
But when I think back, to the old house I realize I'm still ahead of the game. I bought the 920 square foot, three bed, 2 bath property in 2000 for around $80,000. I sold it in 2010 for nearly 3 times that much! Today similar properties are on the market well under $200,000.So despite the fact I'll "lose" money on this sale, I am certain I will still recoup the down payment I made on this house, plus a decent portion of the principal payments I've made over the past nine years. (This is the net amount after commissions and legal fees).
While I could wait for that perfect buyer, there is no guarantee that house values won't drop even further in the next year. In fact, our local real estate board is forecasting another 4% drop in the next 12 months. With that in mind, coupled with my desire to move on, I'm prepared to swallow this bitter pill. It is going down much smoother because I realize unless I go back to work I can't afford to do the changes most buyers would expect. AND there ain't no way that's happening, I can assure you of that!I'll be back in a couple of days with an update on the rest of my week. Have a great rest of the weekend everyone!
I'm sorry you haven't had any takers at your current asking price. You've already put a lot of work into your house, and I hope that you'll have a quick offer on a reduced price.
ReplyDeleteGenerally, homes here in my complex and overall neighbourhood sell pretty quickly, except for the ones that haven't been touched since they were built in the '60s and that need a complete (cosmetic) gut, but still have high, unrealistic asking prices. The townhouses in my unit, the few left that haven't been sold for rentals, are listed at over $200K now, and I've seen a couple of them listed close to $250K. Even with fantastic looking renos, that's insane, these are sh*t boxes, poorly constructed in the mid-80s, to the lowest possible standard at the time, which isn't even close to minimum code by today's standards. I don't know what they sell for, of course, but I know mine won't be worth over $200K, considering the work that needs to be done (kitchen, bathroom, plus everything else and the stupid leaky basement). Anyway, I don't want to think about that! Nothing I can do about it, as long as the vet keeps taking any savings I manage to accumulate. LOL.
Good luck, fingers are crossed, and I hope the next update is a great one!
House prices around here keep dropping as well. It's tough. Hope everything works out well for you.
ReplyDeleteTiming in the market is vital. I was lucky and sold in a crazy hot market--today would not be good for me. Too bad your agent hadn't been up front 25 showings ago. Hope the adjustment brings results.
ReplyDeleteThe housing market is fickle. I live in Denver with one of the hottest mkts in the us but even so houses are hanging around longer.
ReplyDeleteRight now the market here is a sellers market, but markets always swing and it will be a buyers market again. I would love to be able to put ours on the market right now, but Mom lives 2 minutes form us and as long as she is in her home, I need to stay in my current house.
ReplyDeleteI wish the agent had said something to you in the beginning or at least as prospect 20+ came and went...time for a revamp on pricing. Good for you for being open to what will likely be a turning point for you at last.
ReplyDeleteThe whole house selling thing is very particular. I feel bad that it hasn't sold BUT you are doing the right thing in my mind too. We only went part way in the steps our agent told us, sticking to our guns. Even though the market was hot and we sold within 2 weeks, the following year we would have had bidding wars and got a nicer profit. You just never know!
ReplyDeleteI was in the same position. I didn't get back from the sale of my house what I put into it. It can be most discouraging.
ReplyDeleteThe exact same thing happened to us when we left Alberta. Our home was on the market for 3 months then we took it off and put it back on 6 months later. We lost about $10,000 but the home previous we made 3x what we paid so it all evens out in the end. The purchase was still cheaper than renting so you are way ahead. And yes, losing the money was worth it as happiness is worth even more so I don't see it as a loss. Plus, since we moved here our real estate has gone up about 30%
ReplyDeleteI meant to also say that home we sold in Alberta is worth even less now - 7 years later, about $50,000 less
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