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How Not to Sell a Sub-$100k Home in This Market

How Not to Sell a Sub-$100k Home in This Market

Ripped from the actual MLS …

  1. Purchase a home at a Trustee’s Sale for $48,000 and change at a time said homes are selling in the $50s in the same neighborhood.
  2. Fix up said home, pouring however many thousand dollars were necessary
  3. Put said home back on the market at $68,000 – roughly 25 to 30 percent above current market value.
  4. Inform potential buyers that the seller will not accept any offer below 98 percent of list price, or just slightly less than 25 to 30 percent above current market value.
  5. Inform potential buyers that since the sellers can’t control the appraisal, the sellers will not adjust the purchase price on a financed offer should the appraisal come in below the offered price – say, for example, at market value.
  6. Send buyers’ agent a spreadsheet of all of the sellers’ properties, the vast majority of which are equally overpriced.

Here’s a hunch. If a sub-$100k home has been on the market since mid-October in these market conditions, it’s either shredded or miserably overpriced. There are no other options.

No worries, though. In a few years we just may have appreciated enough to make that price 25 percent above the current market.

Hopefully the seller has time.

Photo credit: Candie N via Flickr Creative Commons

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