I have a possible opportunity to sell my place to someone in a cash deal. The couple wanting to possibly buy are both realtors. The wife will act as the realtor and the husband will be buying with cash. They haven't walked through my place yet, but are willing to buy it 'as is' as it needs a lot of updating and some repairs. I've told them what needs to be repaired and updated.
She wants me to give her my 'number' of what I need to get for it. I seriously want it gone (haven't lived in it for a few years) and getting what I need to pay off my mortgage will make me happy. My family thinks I should ask significantly more than my mortgage. While I realize I should pad it for negotiation purposes, I don't want to lose this opportunity. They are planning to flip my place, so they don't want to pay a lot. I won't have to list it and go through that a hassle. It sounds like a dream scenario to me in this case! This place has been a source of financial drain and anxiety to me for years.
Am I being stupid by only going over my mortgage amount by about $6k (I owe about $35k)? Condo units in my area that are the same are selling for around $80k and aren't exactly updated inside. I would estimate about $15k needs to be put into it to bring it up to the level of the ones being sold for $80k.
I would get your own realtor and get comps for it. You should also get a lawyer. So, youโll need to account for those costs along with closing costs in your asking price.
The ones that sold for $80k actually sold for $80k (give or take a couple thousand) and were in my building. This was in just the last month or so.
The guy wanting to buy it has a set amount he is willing to pay and I obviously have no idea what it is, but assume it isn't that much if he's planning to flip it. I just don't want to go too far out of his range and have him walk away.
I plan to have an attorney review the contract she writes up to be sure it's in my best interest. I padded my number by $6k to cover that, the cost of a few minor repairs and the dumpster rental to clear out some stuff. I'm fine with breaking even. My family is making me second guess this!
If other units that are in the same condition are selling for $80k I would ask for between $70-80k regardless of what you have left on the mortgage.
I start at $80k and expect to settle for a bit less (around $75k) because you donโt have to pay for realtor fees. Iโd probably reach out to a realtor to get company.
I would definitely ask for more. If the comps are $80k, they may be thrilled to get it for $70k and you will end up with tens of thousands more. A bit of negotiation won't hurt and you don't want to underbid yourself.
Definitely get a realtor and/or real estate attorney.
Post by turnipthebeet on Oct 13, 2017 6:36:17 GMT -5
I wouldn't worry about what their intentions are with the place. You should contact a realtor. You wouldn't have to pay. Keep that in mind, too - that the wife will get money at closing, so I think you should pad further.
If other units that are in the same condition are selling for $80k I would ask for between $70-80k regardless of what you have left on the mortgage.
I start at $80k and expect to settle for a bit less (around $75k) because you donโt have to pay for realtor fees. Iโd probably reach out to a realtor to get company.
The other units aren't in the same condition. It would probably cost about $15k to get mine up to the same level. The ones that sold for $80k weren't updated, in that they still had the original countertops and cabinets from the 80's and weren't anything outstanding. They are in good condition, just outdated. Mine needs some repairs and is outdated.
I'm positive this guy won't be paying anywhere near $70k for my place. He's a friend of an acquaintance and so he's aware of my situation. If I go through a realtor I'm going to have to make repairs and get an inspection, etc. I don't have the money to make all of these repairs, which is why this place sits in need of repairs! Sorry, I guess I'm not a good storyteller.
Don't you want the equity you've built up too? Don't worry about them, worry about yourself.
I do, but at this point I'm just throwing away my mortgage and association fee every month. In the end getting rid of my place will give me that money each month plus rid me of the anxiety of owning a place that just sits there in need of repairs. It has been a thorn in my side for years and I plan to throw a party once it's out of my life! Really, this place has given me so much anxiety that I daydream about no longer having to worry about it.
Post by penguingrrl on Oct 13, 2017 6:55:07 GMT -5
If getting it to the value of the ones selling for $80K would require $15K worth of work I would start negotiations at $65K knowing that youโll get less than that. Donโt lose out in equity just because you want to be rid of it. Presumably it wonโt cost them $15K to update it as theyโll do the work themselves, and theyโll sell for over $80K since non updated go for that, so theyโll still make a tidy profit.
If they are buying it โas-isโ thereโs no need for you to make repairs.
I would get your own realtor- it would likely cost you 3% of the sales price at closing. So thatโs $1800 Assuming you can sell it for $60,000. Thatโs an extra $20,000!
If they walk away if you ask $65-70 (which they wonโt, theyโd negotiate) then have your realtor put it on the market as is. You donโt need to update anything. You donโt live there so itโs not a hassle to show it.
Thank you for the ideas and input. It's good to have people who are not close to the situation chime in.
I have a lot to think about. It makes me so nervous and I have hardly slept all week worrying about this. Ugh. I don't want to screw myself over, but I also don't want to have to deal with this place any longer. Going into winter and the holidays it's not likely I'll be able to sell that easily. I'm going to make a pros and cons list and make some calls and go from there.
Post by gerberdaisy on Oct 13, 2017 7:24:16 GMT -5
If you donโt want to involve a realtor I like the idea of starting at $65. Donโt worry about their intentions with the property and ask a fair price.
Most realtors will do a market assessment for you. Not sure if they may charge a flat fee or just do it for free. I wouldn't discount yourself as an owner just to get out of it.
If your unit requires $15k worth of repairs to get it equivalent to the other units that sold for $80k, then I would start with $65k knowing that I will end up settling for a bit less.
Is your market a hot market? Or do properties sell slow? Have you tried to list the property before?
I guess I'm kind of at a loss if this property is causing you a tremendous headache, you owe $36k, the market is selling at $80k, and you haven't tried to put the property on the market? Their intentions are irrelevant. Unless it's been on the market for 2 years with no offers, I would try to sell at closer to market. It may be a headache for you, but you should at least try to get your equity.
Hi there! How are you?? I think you should sell it for sure. I do think you should try to walk away with some money, if you can. I like the idea of starting at $65k but if it was me, I would probably start at $60k. Especially if you are okay breaking even. Getting out from spending the mortgage and fees every month will be such a relief and give you breathing room every month. Good luck, I hope it works out for you!
Post by cabbagecabbage on Oct 13, 2017 7:49:52 GMT -5
Realtors will come and see your place and tell you how they'd price it. Talk to some. Seriously.
This is like any other legal and financial decision. I wouldn't be ok with the other side representing you. How on earth will that end up with both sides getting a fair deal?
I guess I'm just so emotionally spent on this place (things I don't feel like going into on here). It's hard to explain. I understand what everyone is saying, but my heart is saying take the opportunity to get rid of it and run.
I'm leaning closer to $50 now after reading everyone's replies. I only paid $58k for it 20 yrs ago. The furnace stopped working, so that will need to be replaced before winter. So if I don't sell it now, I will have that expense.
What you owe on the mortgage has absolutely nothing to do with the value of the home. Get that number out of your head - it's irrelevant here.
Also, not important is what the buyers want to do with the house.
You need to sell it for market value. Period. End of story.
PLEASE call some realtors in to help price it and to help guide you. I get wanting to wash your hands of the place, but don't leave all that money on the table!
If other units that are in the same condition are selling for $80k I would ask for between $70-80k regardless of what you have left on the mortgage.
I start at $80k and expect to settle for a bit less (around $75k) because you donโt have to pay for realtor fees. Iโd probably reach out to a realtor to get company.
The other units aren't in the same condition. It would probably cost about $15k to get mine up to the same level. The ones that sold for $80k weren't updated, in that they still had the original countertops and cabinets from the 80's and weren't anything outstanding. They are in good condition, just outdated. Mine needs some repairs and is outdated.
I'm positive this guy won't be paying anywhere near $70k for my place. He's a friend of an acquaintance and so he's aware of my situation. If I go through a realtor I'm going to have to make repairs and get an inspection, etc. I don't have the money to make all of these repairs, which is why this place sits in need of repairs! Sorry, I guess I'm not a good storyteller.
The bolded makes me wonder if this couple figures they can take advantage of you and get a basement price. I agree with spearmintleaf in that I'd probably start at 55k and expect to go down to 50. You get a profit with minimal work (and get rid off a source of anxiety), they make a profit after fixing it up, everyone's happy.
Unless you are a multimillionaire you have to get these numbers out of your head and make the best possible deal. Please don't settle just to walk away, I don't know anybody that wouldn't want to make a little money. Think of it as a business deal, not personal. If others are selling in your building then you can sell to somebody else if they walk. But, I think you could get them to pay 60-65 and they will still make money.
While it's true what you owe on your place shouldn't dictate your sales price, I have a bit of a different opinion on your situation.
It seems like you're in a LCOL slow market. It's likely that with the work your place needs (specifically a new furnace), it could take many months for it to sell. And if you don't sell it ASAP, you're going to have to put in a new furnace yourself, which will cost several thousand dollars.
I think for the peace of mind, and all the carrying costs you would avoid, it's advisable to sell to these buyers. The fact that you won't have to deal with financing is huge. For me, asking for $65K is pie in the sky. You wouldn't likely get anyone else to pay that much anyway.
Ask for $50K. And take less if need be. This condo is a financial drain to you, and will only get worse if you keep it and have to make repairs. An all cash buyer willing to waive an inspection in a slow market is like winning the lottery quite frankly. Don't lose out.
I guess I'm just so emotionally spent on this place (things I don't feel like going into on here). It's hard to explain. I understand what everyone is saying, but my heart is saying take the opportunity to get rid of it and run.
I'm leaning closer to $50 now after reading everyone's replies. I only paid $58k for it 20 yrs ago. The furnace stopped working, so that will need to be replaced before winter. So if I don't sell it now, I will have that expense.
I say this gently, but you need to take the emotion out of this. Your current mortgage amount only matters in that you need to make sure you get that amount at a minimum. It has no bearing on the purchaser's offer though. The same as they wouldn't offer you more than they were willing to pay if you owed more on the mortgage, you shouldn't offer your place for less than its worth just because you owe less on the mortgage. I would not mention to these people what you currently owe on your mortgage, it should be irrelevant to them.
I get that you want to get rid of it, I do. And that's worth something, for sure, but I really don't think it's worth over $20k - that is about 33% of the value here. Think about yourself and what you could do with that money.
Agreed with everyone else. I feel like they are trying to take advantage of you and that's not right. Find out what you would need to price it to sell it and find a realtor that takes a smaller commission (mine took one when we purchased). You will end up in a better position and money in your pocket. I would not want to say goodbye to a substantial amount of money so easily.
Realtors are professional negotiators. They are expecting to negotiate price with you, they just want you to name the first price. Since they have a buyer, it's unlikely they would walk away.
This is a good opportunity for you. Try not to stress, you can do this! Just up your amount. No need to give it away to them. It hasn't caused them years of heartache, and they are not doing you a favor. They are paying for something you are selling.
I guess I'm just so emotionally spent on this place (things I don't feel like going into on here). It's hard to explain. I understand what everyone is saying, but my heart is saying take the opportunity to get rid of it and run.
I'm leaning closer to $50 now after reading everyone's replies. I only paid $58k for it 20 yrs ago. The furnace stopped working, so that will need to be replaced before winter. So if I don't sell it now, I will have that expense.
So, in five years, will you care if an extra 5 or10k is in your pocket? Of course you will. Either they want to make a deal and will work with your reasonable offer of the actual market value or they are vultures and you'll be better off without them.
Thank you everyone for your wisdom. Sorry I did kind of a post and run. I was at my condo cleaning and fixing a few things up today.
I know that I'm thinking with my emotions and I'm having a very difficult time separating my emotions from what's really best for me. I just want it out of my life so badly!
Why would you ask for 50k if similar ones with 15k in updates are going for 80k?! You should be ending at 65K negotiated down from 70k if that's the case.
I have a family member who bough their house for 45k 30 years ago. Its worth millions now. Do you think it would be smart for them to sell it to someone who is offering them 80k because she bought it for 45k? Heck no! Houses are supposed to appreciate with time. That's the point of owning them. Get the money your house is worth