Anyone want to buy a house?

[Lyta]

Gah, we need it to sell so we aren't in this weird limbo state. Plus, I am afraid someone will come along and buy the house we want from under us. I am at a loss about what else to do but lower and lower the price until we get an offer.

Booo hoo. I am just not having a good night right now. 

[Mrs Mitchell]

Such a tough time to be selling. Sorry you're having this stress.

Where is your house?

Jen

[Trinkette]

Lyta, I understand how difficult your situation is on several points – like you, we are marketing my house right now and need the proceeds to move on to our "dream property" (we're building). I hate limbo.

And, I watched several dream properties disappear before we could get our finances together just to purchase land. We didn't get our favorite, second-favorite, or even third-favorite property, however, DH and I are very happy with our pick (right next door to my house and land for sale). All things considered, this really turns out to be the best choice for us... we just didn't know it at the time.

Also, often I do marketing work for my DH who is an owner/broker in real estate.  I know that selling a home at ANY time is stressful. These economic times can slow the process  and make things even more difficult.

I am SURE you know all of this. However, I am going to remind you of some stuff (because we are all going throught this together... nice to know that you're not the only one suffering, LOL):

It goes without saying that today, pricing is crucial. Are you working with a realtor? Have you studied your local market for comparable, recently SOLD properties? Where does your home stand in relation to the others? How long has yours been on the market? Are you getting showings? What is the feedback?

More buyers make regrettable decisions because they feel pressured to act fast or "have to have" something. Try to keep your head and your spirits up. Lowering your price to position your home properly in the marketplace is a good move. However, remember, NOW is the time when buyers are coming out... peak shopping season, so to speak. If you've priced your house correctly, try to be patient for a few more weeks. Then, if you are not getting any action, consider lowering your price. You may have to do that again before your property is sold. And, if you DO lower your price, make the drop count for something.

On the other hand, if you've not been getting any showings, and the property has been on the market for while, then, now may be the time to make a cut in the asking price.

Yes, you may loose your dream property while you market yours. However, if you lower your asking price to below what your home is worth, just to get a toehold on the dream house, you may regret it later. Especially now, when every penny counts.

Remember: 1) real estate  deals get delayed... or worse, blow apart ALL the time (even at the last minute, especially now when financing is more difficult for buyers); and, 2) there WILL be another "perfect" home for you (although it may take awhile to find it). You are better off selling your home, free and clear for the right price, and renting month to month, if you can, while you shop, than stepping into a tangled web of unsure deals as you try to fit the square peg into the round hole, so to speak.

Best of luck and keep your chin up! There is sunlight at the end of the tunnel. (And, I FEEL your pain...  we've been in a limbo of sorts for years. I stinks.). 

[Mikla]

We've been under this same pressure since December 2005.  At that time, my husband accepted a position in central Florida where we bought a home at the highest point in the market and we put our house in south Florida up for sale.  We never sold our house in south Florida because the market tanked and I didn't lower the price fast enough, and we have been making two mortgage payments ever since.  My husband lost his job last year and was unemployed for about six months.  He ended up accepting a position in south Florida and now we've moved back to our old house.  Our home in central Florida is now worth 40% less (I'm not exaggerating) than what we paid for it in December 2005.  We are selling it at a loss and have to come out of pocket to do so even though we put 20% down and have made mortgage payments for over four years.

I don't know if you live in a state that experienced the same kind of rapid decline in real estate prices that Florida did, but for whatever it's worth, my advice to you is (1) don't buy another home until you've sold your current home, and (2) if you really want to sell, lower the price to market or slightly below market now.  Testing the waters at a higher price isn't going to help in this market.  You can always rent something if you sell your house and don't find your dream home right away.  I could have saved myself years of stress and several hundreds of thousands of dollars if I had followed this advice.  Just my two cents.

Mikla

[Trinkette]

Mikla, I am sorry to hear all of this. ACK!... 2005 really was the WORST time to have purchased real estate (hahahaha, that's when I purchase my home as well). Given all the bad timing (and, who knew back then?) you are brave AND smart to get out now at a loss. Painful. OTOH, I am very happy to hear your DH has new work again. 

I remember about two years ago, perhaps more, talking with an acquaintance who had her home for sale. She wanted mid $300K, I think. At the time, after the market had already dropped, my DH told her he thought the house should be priced in about mid 200's, and there were buyers for homes at that price. She didn't like the number, said they'd loose money, so, she marketed the house on her own. Sadly, at some point since then, the bank took ownership of the home. Last week the house finally sold for less than $200K. 

[saqsay1]

Lyta, sorry to hear about your house troubles. your not alone. it seems like everyone knows someone in trouble. just try to hang in there. i will pray for you!!

mikla, i'm in port st. lucie 

[Mikla]

At the time we decided we could carry two mortgages while waiting for our other house to sell, we were both working and could never remember a time in Florida where the real estate market had not experienced increasing prices (and I've lived here since 1980).  It was inconceivable to us that we'd ever lose any money in real estate.  Another of my follies has been the stock market.  I'd always read that the stock market had average historical returns throughout the years that would beat bond returns.  Now we have just experienced a "lost decade" in the stock market where returns were basically nil (or negative in my case) and bonds would have returned about 6%.  It just goes to show you that you don't know what you think you know and the past is not always prologue.  The lesson for me is to save more and live well within my means.  There's nothing to be done about the situation now except deal with our present circumstances.  Oh well, it's probably time to get off of my soapbox now!  

Mikla

[ah2bqat]

It's a horrible situation Lyta. I feel your pain.  

A year+ after moving halfway across the country to my DH's new job, I finally got my house sold at almost a 30% loss. (I had built it in 2003 - saved me 10-20% loss over 2005!)  Now my DH has lost this job, and we are thinking of moving again - to a state where there isn't any state income tax.  Unfortunately, there isn't any job for him, either. It broke my heart to sell that house, I'll never have another so nice.  Still, it was a blessing to have it sold almost the same week he lost his job.  My salary alone couldn't cover that mortgage, our rent, and living expenses.  Point being, no matter how things play out, there will always be some blessings mixed in with the problems.  

And remember, your dream property of today could turn into tomorrow's nightmare.  We were in process of setting up an offer on a house we had been watching the entire time we'ved lived out here,  to deliver when my house sold.  If DH hadn't gotten so ill and we had gone through with it, we would have lost our earnest money.  Worse, if there had been several months between the sale of my house and his job loss, we'd be stuck with a house that we couldn't afford  and might have lost everything.  Keep your chin up.  Everything happens for a reason, even if we can't see it at the time.    

[djm195]

Mikla, Lyta and T, I share your pain too.  (I think we should form a support group--either that or take up heavy drinking....HA!!!) Anywho...like a few of you, the home we were looking at was sold from under us. Huge bummer.  

Our home has been on the market for over a year. Every realtor who has ever been in it has said that it is the "deal of the century". We have lowered our price 3 times over the last 15 months. It is in pristine condition, decorated to the T (my wife owned a home furnishings and accessory store) and it is immaculate inside. (New roof, new furnance, new paint job, new appliances). The house is located alittle more than a half mile to the ocean (three beaches within walking distance) and is in an executive neighborhood. It is a custom designed shingle styled home and has recently been featured in a lecture series for fine home design and architecture. My wife has it very well staged and it looks like it jumped out of the pages of House Beautiful every time we show it. In fact, we have heard from couples that have seen it say: "well... whoever did this must be a professional decorator". (Nope, just two people with OCD that are married to each other...LOL!)

My realtor has shown it a ton of times and there have been absolutely no negatives with the exception that it is "too nice, my family would ruin it"   (I'm not buying that one) or that it is too big (jeez...the listing sheet says that its 5000 square feet.....do they think it's going to be smaller once they get in?) and, get this one...it's too "formal" (umm...take away our furnishings and it isn't "formal". Which by the way, it is not formal, just well appointed. We even said that the furnishings are negotiable.  

We have begged our realtor to tell us what the story is, if there is anything else we can do. She always says the same thing: "In thirty years of real estate she hasn't seen anything like it". As for the pricing, we are well below any other home of our caliber (location and type of neighborhood, and square footage) In fact, our comps have less than we do re: number of bedrooms, fireplaces, detailed mouldings and built-ins.

So, T...can your ask your husband what he thinks? What are we missing? Is it that it's just too big? Is it intimidating for people? Are they reluctant to make an offer because the price we have it at is more than fair for what they would be getting? Are people just afraid to pull the trigger? Oh...and one more thing before he asks, there is nothing quirky about the floor plan. It is wonderfully executed with large rooms, excellent for entertaining and good flow. (At least that's consistent with the feedback we have been given).

PS: I hate limbo and I really hate poseurs.

Frustrated,
djm

[ebedner]

Hang in there Lyta and everyone...  I feel your pain too.  I am currently forking over two mortgage payments - one for our house here and for a house we bought in Florida.  We are renting out the house in FL because we couldn't sell it (there is so much property for sale in our neighborhood it is insane).  Even though we rent it, the rent is well below what our mortgage is so we come out of pocket for that house.

This housing market is wonky for sure...  ((HUGS))

[Trinkette]

Ouch, DJM, That really hurts. How incredibly disappointing. And, I KNOW your home is a showplace. You must be terribly discouraged.

I'll ask DH what he thinks, but, I can take a guess... Basically, there is no easy answer. You've done everything right as far as I can tell. Assuming your realtor is marketing aggressively, all that is left is to do is market outside your area (years ago – HA! – In 2005, now that I think about it, I sold my big horse farm in New England to a couple from the UK; thank heaven for them). Perhaps your place could be advertised in specialty magazines, in-flight mags... ? Does it have income potential? A B&B perhaps? Of course, all this marketing takes more $$$. *SIGH*

Anyway, my BIG answer to your dilemma will absolutely drive you nuts.

I know about where you live (no worries, my stalking days are over, hehe  ) and in MOST areas, especially a region such as yours, the higher-end homes are just not selling because there are no buyers. Basically, the bottom of the real estate market (least expensive properties) is reviving first, and sales will SLOWLY work their way back up the ladder. The exception is in places like Washington DC, which has one of the most active markets in the country right now, and relatively high prices (and an international buyers pool). But, as I said, DC is an exception.

Some of the overall higher-end-not-selling problem stems from the fact that once upon a time people were able to purchase these homes with loans that they shouldn't have been able to get back then. Now... forget it. Also, SOME People with higher-end homes can afford to wait out the market until it is a better time for them to sell what they have before purchasing new.

Many people who had second homes can't afford them anymore (in your case, think Bostonians who like to vacation up north).

Also, something else to think about is the fact that for the last two years, in most areas of the country, would-be buyers have been waiting for the VERY bottom of the market to hit their area. Everyone wants a deal. And, buyers have been beating-up sellers to get the lowest price. So, they've been stalking the very bottom of the market to try to purchase as far below actual value as possible. DH calls these buyers
"bottom feeders." Your home is not bottom feeder fodder.

For some, very few, it worked. However, historically, most people miss the market bottom and don't figure out it has come and gone until it is too late. The good news is, in many areas of the country (like mine) already the bottom of the market has come and gone. So, finally, sellers have a bit more say again when it comes to price and there is less inventory up for grabs.

For example, DH is out right now with some people who have very specific criteria in terms of purchase price, square footage and other home charactersitics (like a basement and high ceilings with more than 2 acres). Two years ago, there were SCORES of choices. Today, in more than four counties, there is only ONE property that meets their desires.

On another front, DJM, you are in a region with WINTER. That translates into relatively higher heating costs and other expenses (key reasons why I left New England in '05. According to my sources, annually it is 20 percent cheaper to live where I do now compared to where I lived up north). These days, the trend for many, especially the over-40 crowd (ie, people who are well-established enough to afford your home), is to move to warmer climates. Also, affording such a gracious home means a well-paying job (ANY job is harder to come by these days) or other significant income is essential.

All these factors, combined with the overall real estate market and sunken world economy add up to... no sale fro DJM and family so far.

DJM, I KNOW you will find the perfect buyer. Hang in there. It just takes time to make the right connection. Sadly, the old saying, "timing is everything," seems to hold water. Phooey.

So, we'll just start our own, EXCLUSIVE, CDI Real Estate Seller's Club while we wait... 

[Trinkette]

*YAWN* Is anyone still awake after that? Gracious. 

[titania]

Of course this is a HOT topic.
Having just returned from Florida, and ourselves having a property there on the market; well -- in an massive statewide housing downturn what can one expect? It's awful down there, and here as well. It does come down to price points, I think. Plus, every area has a different local economy when it comes to real estate. In the Boston area where we are, the market is pretty good; high-end neighborhoods are selling close to asking price and obviously the cheaper places go quickly. It depends on the desirability of the area.
DJM, your fabulous property should sell, one would think. But again the economic picture is so bleak that farther-afield locations are probably harder to sell. So, price comes down and waiting game begins all over again....
Everyone's talking real estate these days, it seems. People say it's a buyer's market, but every area has factors which are particular to it, and it's hard to generalize.

[Mikla]

Wow, I knew it was bad out there, but in looking over the responses we saw posted just today, I realize just how widespread the problem is.  Everyone is affected.  And if our economists and Congress can't find a way to create more jobs, we may be living with this situation for much longer than we'd expected.  But I do know that it will end eventually, so hang in there, guys.

Mikla

[Lyta]

Ok, I finally have a moment to sit down and reply. I have been reading then something comes up and then new replies that I read and now I hope I can write something down! Of course now I am waiting for someone to show our house and my daughter to wake up from her nap so this might be cut short.

So, I am just north of Seattle ... about 20 minutes by car. Our housing market hasn't been hit as hard as other places in the country but I think it's starting to catch up. I can post a link to the listing of our house but I wasn't sure what was allowed here. Friend me on Facebook and you can see photos and links galore! LOL!

We have already been bumped out of one property so now it's only a matter of time before it happens again. The development that we are buying into is selling their homes like hotcakes. It's amazing in this market! I am working with a great realtor but the problem is that the homes around me are not working to our advantage. Just one month ago we listed for $395k and that was a tiny bit high but we figured we would get offers less than what we asked for. All the comps supported that amount and it was approved by the builders to hold our contingency. Now here we are almost a month later and they are requiring us to drop the price to $370 in order to renew the contingency. We already dropped down to $380 last week and have gotten a steady stream of traffic through the home. The only feedback we have gotten is the "driveway is too steep", "too many stairs", "not enough yard" or the "it's just not what my clients are looking for". These are all things we can do nothing about so we just hope that a buyer will just fall in love with the home and buy it! That will be today right?

The thing that pisses me off is that there are homes selling in our price range but they are just out of our 1-mile comp radius. Everything near us sold for way under asking or much less price per sqft which really hurts. I saw some of those homes and they aren't as nice as ours! It seems buyers want EVERYTHING remodeled and finished for a BARGAIN price. Or they want an outdated house that needs a lot of cosmetic work. Again for CHEAP! We are competing with foreclosures and short sales so it brings our price down in order to compete.

So, we will lower the price and see where it takes us. If we lose the property we want then so be it. At least we tried the best we could! That just means we will remodel and try again in a few more years.

And what sucks even more is that we have enough money to buy a new house without having to sell this one but the bank won't lend us enough money to cover it. We don't want to deal with renting but perhaps we should consider it again?

Well, my daughter is awake. I will write more later! Thanks for all the helpful advice and support. It's just frustrating!!!

[Trinkette]

Lyta, in addition to the real estate, my DH owns a residential homebuilding business. When the company was active with new construction, they built very well-constructed homes, not over the top, but quality, nonetheless.

One of the nicest homes they built was located on a lot purchased from another builder who had already poured the foundation for the house. When it was finished, in terms of quality, floor plan, general location and overall aesthetics, the brick home, situated on a little hill, was superb. And, the price was right. A lot more house and quality than many, many, comps. However, the "steep" driveway (although quite short and navigable) and steps into the front of the house and from the garage into the home, KILLED the sale of this house for more than two years. These were the ONLY reasons the house did not sell. (They sold four others on the same street early-on... this was, by far, the nicest of all five). After more than a year on the market, and renting for another year, DH and partners took money out of their pockets to facilitate a closing. The new owners made a killing when they purchased this home.

*SIGH* Sadly, Lyta, I'd have to say that the hill and stair access to your house ARE significant in this market...  

[Trinkette]

DJM, I forgot to write that some of your prospective purchaser feedback comments were just, well, hilarious. Also, remember, there a many, many people out there just window-shopping. Try not to take it all to heart. And, for what it is worth, your realtor is correct... there has not been anything like this market to date.

[djm195]

DJM, I forgot to write that some of your prospective purchaser feedback comments were just, well, hilarious.

I KNOW T!!! What next?  
"Ummm....we absolutley LOVED the house but we were disappointed you don't have a bowling alley."
 

[Trinkette]

Ha!!!!! I wouldn't be surprised to see that at all. Isn't that sad?

[djm195]

T--thank you for the post.

I think you are right on the mark. Job relos have dried up in the last few years ...and... my home is definitely too large to be a second home for most families. Those that want alot of square footage for a vacation home usually want to be on the water--starting at 2.1 million. (down from over 4 million three to four years ago). It's all relative I guess.

Lyta, I hope you had a good showing today. I'm crossing my fingers.

djm

[Lyta]

Well, there is nothing we can do about the driveway, stairs or hilly property. We have .31 acres but most of it is a hill. We like it because there is so much privacy and we look out to more trees across the street as well. We re-landscaped the yard and redid the front stairs over the last two years so it is a huge improvement over what it was before. Still, people don't see it and it will sell to the right buyer but I realize that might take a while. I just wish we had the luxury of waiting.

I remember wondering why this house was still on the market when we came back again after looking at a ton of properties. The siding was an issue which we replaced when we bought the home but I am guessing the same objections we are getting now were what the previous owners were getting too. Well, that maybe and the 90's decor! My heart is sinking because we have made some updates but not everything. People seem to want it all or none and we are right in between.

I feel sorry if any of our neighbors decide to sell right now. There are two other homes with steeper driveways and more stairs.

[Lyta]

What kind of comments were you getting DJM?

Well, I should comfort myself that we can sell it for even less than what the builder wants us to. We will have enough for the next home but man, it totally sucks to have to do that. Just let it go. Just let it go.

Oh and our showing today canceled. It's hard to tell if it was a story or for real but some emergency came up and the clients had to go home. The agent said they will reschedule so I hope they do!

[Diamondsbylauren]

Sorry to hear of the bummers guys.....
djm- I'm sure it's only a matter of time....this might be totally off base, but maybe you need a new broker?
Lyta- I'm putting the karma out there. You're gong to find someone who feels that stairs are a good way to stay young. They force you to work out.
(That's what I tell myself when I forget the keys in my bedroom, on the third floor, and I'm in the garage)
Seriously- don't let the negative stuff people say sway your knowledge of what you have, and it's assets.
Even if you have to accept a bit less than you want, my advice is to come from a position of strength.
You guys have great properties, right?

I have no objection whatsoever if someone wants to link to a house listing.

I'll keep my fingers crossed for you guys.

[sherylsbuys]

djm - would you mind telling me what city you are in?  Or e-mail me at tiptonsheryl@gmail.com - your home sounds wonderful and I've always wanted a house near the ocean.  Thanks, Sheryl

[djm195]

Sorry to hear of the bummers guys.....
djm- I'm sure it's only a matter of time....this might be totally off base, but maybe you need a new broker?

I've thought of that David...but you know me...I could NEVER switch brokers. We live in a very small community so I'd always be running into her-- the guilt would kill me. Besides, I really can't say that it's anything she has done (or hasn't done) that the house hasn't sold.
Thanks for your good karma D.

djm