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House under Contract
Old 03-20-2011, 12:57 AM   #1
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House under Contract

We are finally under contract to sell our house and the inspection period is over. Buyer is cash buyer so it is very likely the sale will close.

We originally listed last Spring, telling our agent we didn't want to maximize price but wanted to sell quickly so we wanted to price to do that. She recommended a price (that she seemed to support with comps) that in retrospect was too high. We reduced the price but by then it was toward the end of summer and the market was dying. We took the house off the market after Thanksgiving.

In February we interviewed different agents who both gave us identical advice. They thought the last price we had listed at was fine and we would sell. However, when I asked what price would cause us to sell within 3 months they both suggested a lower price that would bring in a different price bracket.

We relisted at the lower price (hating doing it but hoping for a quick sale). We had 4 showings over a 2 days period and are selling to one of them. We ended up with a price that was way below our initial listing price. I wish I had known a year ago that that was what we needed to do and we would have saved on year's worth of carrying costs.

When we sell this house we will briefly be completely debt free. We are going to build another house. Philosophically I believe in paying off the mortgage in most instances. However, almost all of our money is in retirement accounts so if we paid cash to build we would have a huge tax hit. So we plan to take a mortgage at least for a few years.
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Old 03-20-2011, 07:50 AM   #2
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Congratulations on the sale! It must be a major relief.
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Old 03-20-2011, 08:11 AM   #3
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Great news! Everyone I know who has sold a house post-2008 has had to take less than they could have gotten prior to that date. However, they have all bought new residences that were quite steeply discounted, too.
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Old 03-20-2011, 08:59 AM   #4
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Congratulations ! You must be thrilled !
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Old 03-20-2011, 09:34 AM   #5
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Congratulations!
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Old 03-20-2011, 09:59 AM   #6
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Congrats! Looks like we're in the same boat, we're closing this Thursday. Everything finished on my end, just cleaning out the garage and waiting for papers to signs and getting a check.
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Old 03-20-2011, 12:12 PM   #7
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Congratulations Kats! That must be a relief.
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Old 03-20-2011, 12:20 PM   #8
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Such good news, Kats. I've really appreciated your openness this past year about your thought processes in putting this house on the market, buying the one you're now rebuilding, etc., etc. I'm so glad this day has come for you!

Now you can keep us posted on the joys of renting and also building a house
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Old 03-20-2011, 01:03 PM   #9
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Congratulations, Katsmeow! This is wonderful news. Now you can move on with your life and your plans, without this extra drain on your retirement budget.I am so happy (and impressed) that you managed to sell a big house like that in this slow housing market.

When I had my house on the market (for just 4 months), the realtors and comps all suggested one price but I decided to tell my realtor to list it at $10K less because I wanted a quick sale. After two months I lowered the price to $25K less. Not one offer, though. I didn't feel too bad because no other house out of the 13 for sale in my immediate neighborhood sold during that time, not even the foreclosures. There were plenty of lookie-loos but that was about all. And, rumor has it that an even bigger avalanche of foreclosures is on the horizon. You stuck it out, though, and what a wonderful outcome.
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Old 03-20-2011, 03:14 PM   #10
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Quote:
Originally Posted by W2R View Post

When I had my house on the market (for just 4 months), the realtors and comps all suggested one price but I decided to tell my realtor to list it at $10K less because I wanted a quick sale. After two months I lowered the price to $25K less. Not one offer, though. I didn't feel too bad because no other house out of the 13 for sale in my immediate neighborhood sold during that time, not even the foreclosures. There were plenty of lookie-loos but that was about all. And, rumor has it that an even bigger avalanche of foreclosures is on the horizon. You stuck it out, though, and what a wonderful outcome.

Your process is much what I did last year with no luck in my case. When the listing expired I really, really looked at the market. There were sales going on but inventory was continuing to climb as there were fewer sales occurring than new houses coming on the market. And many of those selling were taking as long as 2 years or more to sell (this is an area of custom houses on acreage so even in good times each house was unique enough that it often took a year to sell).

When we relisted, we felt we could hold at our last (discounted) price and we would sell eventually but with huge carrying costs in the meantime. We ended up listing it for a price that was well below what I thought I would ever take, but we thought would make the house stand out as a great deal. Thankfully, that did work.

The house across the street just sold after about 3 years on the market selling for something at or near less than $300k from their initial listing price. I didn't want to be in that position.
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Old 03-20-2011, 03:22 PM   #11
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Congrats! What a relief.
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Old 03-20-2011, 04:04 PM   #12
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Kongrats, Kats
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