Monday, May 11, 2009

In this market- how long is reasonable to have our house listed?


"We're priced in our comp range - and have been told our home shows really well - so I think we've done all WE can to get our house ready. Our Realtor has done a great job advertising and having open houses, but property is just not moving. We really just want to upgrade while prices and interest rates are low, but don't HAVE to move/sell because of jobs or anything.
How long is reasonable to leave our house on the market these days? We won't lower our price because we're already at a pretty narrow profit margin and to go down $5K would not leave us with enough profit to make a down payment on a bigger house. Also, we don't want to live in limbo forever. We have a toddler, and keeping the house "show ready" all the time is a challenge. We had planned on taking our house off the market after 90 days (June 1st) - but I'm now wondering if that was reasonable. We've been listed since March 3 - have had several lookers, but no offers. What are your thoughts?"


If you plan on moving to a more expensive home it may be a good time to make the move even if you take a loss. The more expensive home that you are looking at moving into is probably at a more discounted price than your house. When prices start to go up the price differential between your house and the more expensive one will likely increase.

The problem, as you mentioned, with discounting your current house is that the price drop will come directly from the equity you'd like to use for a down payment. So it may not be realistic for you to move now.

90 days is a pretty short list period in these times. If you are serious you might consider giving it longer. If you can put up with having your house on the market another 90 days might be a good idea.

The weather has finally warmed up, interest rates are low and there are signs of life in the real estate market. Give your agent a chance to get the job done.

Here's a link to a listing of homes on the market in your area, Rochester Minnesota

Saturday, May 9, 2009

How long should I wait for a Short Sale


Here's a question that comes up frequently with regard to purchasing "Short Sale" properties:
"We have a signed purchase agreement to purchase a property from the bank..."

"it has been over 60 days I have not heard anything yet :( so far..the seller's agent was suppose to hear something a week ago..but no news yet..I am wondering if I should bail..we have to keep changing the close date :(..and also what if the condo going into foreclosure while I am waiting what will happen then?"


You got further than a lot of people. Banks often take a long time just to repond to an offer. I discourage buyers from getting involved with short sales at all because what you are going through is common.
Don't assume that banks will behave logically or even in their own best interest. If this is the only house you are interested in and you have all of the time in the world you could wait and see what happens. Otherwise I would move on(assuming you are not legally bound by your contract) and avoid anything that is a short sale in the future.
Typically when a property is foreclosed in Minnesota tha bank hast to wait for the six month redemption period before they can sell the property. In some cases, if the property has been abandoned, the bank can get this time period accelerated, but other times banks seem to forget a property exists and it can just sit for over a year before anything happens.

Friday, May 8, 2009

We want to put a REALLY low offer on a home that has been in foreclosure for 2 years what is too low?

This question was posted on Trulia, Here is my response.

There are two ways you can look at a house when you make an offer on it. The first is as an investment. Your offer is based on the numbers. If things don't work out you move on to the next one and so on until you get an offer that works. With this approach you might be willing to make a very low offer because it's no big deal if you lose it. Make enough really low offers and you'll get lucky every once in a while. If a house is a really good buy at the list price it is probably obvious. In that case even an investor might make a full priced offer.
Most people, even investors, have an attachment of some sort to the house they are trying to buy. Once you put the effort into evaluating a house and making an offer its probably a waste of time to make a very low offer. You need to look at the market and decide if it's a good deal. If the house is priced right and if you would feel bad if someone else got it for a dollar more than your offer, make a higher offer.
Ask the agent what they think. If your agent is not the listing agent ask him/her to ask the listing agent for you. Just by asking the question you might find out things that will help in your negotiation.
Looking at the homes on the market in Robbinsdale I can see there are 28 homes under $100,000. There are also a lot of new listings. You should take into account the prices of other similar options.