Earlier this year I took a Northville home listing. It was my own fault but I took an over priced home and put it on the market. I felt sorry for the sellers. They were wanting to move up and buy a bigger home.
The problem is they owe too much on their home. They bought the house three years ago and it needed a lot of work. The sellers put in a new kitchen, updated the bathroom, and finished the basement over the last three years. Unfortunately the house is worth less than they paid for it three years ago. Let alone all the money they poured into the home.
I showed them the recent sold homes in their neighborhood and in all of Northville. I thought they might want to do a short sale. With what they owed on the mortgage they might have been able to get out of the house by bringing about $15,000 to the closing table. Well we put the home on the market and only showed it 4 times in six months.
It is a beautiful Northville home and it shows well in the pictures on the MLS and the internet. We even got an offer. But the offer was for what the house was worth. What it should sell for. The Northville home buyers knew the market prices and they offered a fair price. But my clients rejected the offer. They wanted and needed more to pay off the mortgage.
Unfortunately the only way my clients could sell the house is with a full list price offer and for CASH. Yes cash. Even if there was some home buyer that had no sense and offered full price it would not close. You see the house has to be appraised. There is no way that any bank would approve a mortgage on an overpriced house. They will appraise the house and only loan on the value of the house.
So if the house is listed at $350,000 and the house appraises at $300,000. Then the bank will only loan $300,000. Either the deal goes kapuut or the buyer has to come up with $50,000. So either you either have to find a very stupid buyer that has to have your house and is willing to over pay for it and has money to pay for it. They have to have the money to cover the difference of what it is worth and what has been offered.
My clients finally listened to me and pulled their home off the market. They now realize that it would be next to impossible to sell their home for the price they have to have. So if you really want to sell your Northville home you have to price it right. I hope this helps you sell your Northville home.
Each of us makes his own weather, determines the color of the skies in the emotional universe which he inhabits. – Fulton J. Sheen