Author Topic: Selling case study an asking advice ( first time seller)  (Read 2518 times)

Chickadee

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Selling case study an asking advice ( first time seller)
« on: August 02, 2019, 07:59:11 PM »

Market Value: z estimate is 110,000, taxed at 96,200

Original Purchase price: 123,200 new build in 2010, "top end" for area (granite, wood floors, floor to ceiling windows galore) planned to live there.. was bad choice. Tried to leave but hard to sell in that area.
Original Mortgage Amount: 95,000
Interest Rate: n/a
Mortgage Term: paid off (was 15 year and did in 8)
Term remaining: paid off
Amount remaining on mortgage: 0

Gross Rents: (was 750 - 900, I increased it when utilities started getting billed to me separately through HOA and they did this in part to avoid people having no-power in winter I guess a sign of the Tennants)

HOA costs:400 per month
+ special assessments in total for term of 8 years : 5680
Some high mainatance items : heat pump $680 repair, floor to ceiling glass pane $2300 (was hit by bullet... even though is 7 stories up .. I do not get how but this is in the past BUT does give you a idea of the stress this place causes me)

I decided three months ago to sell based on my early learnings here and through books.

I acknowledge my basis was part emotional:
Bad area (worse than 10 years ago went downhill and the whole urbanization modern condo thing did not work out!), bad renters, lost of annoyance that did not let me focus on my own wellness, and distance (it is 1700 miles away so I have to pay manager etc and be fleeced by dodgy ones)

After over 20 showings and LOTS of lowballs in the 80-90k range .. SOLD for 103,000, perfect inspection PASS
Seller was to close in 30 days now pushed to 45 days (having financial issues but will be okay... was vague realtor whisper)


Do you think I am making a good decision by letting go?

It is my first time selling and I have cold feet. I did real a lot of Zillow trulia posts that this happens "delays" " something always comes up" so I am holding faith.   






Freedomin5

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Re: Selling case study an asking advice ( first time seller)
« Reply #1 on: August 03, 2019, 04:05:50 AM »
As soon as I read the words “hit by a bullet”, I was like, “Yup, let it go. Definitely let it go. The quicker, the better.”

Chickadee

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Re: Selling case study an asking advice ( first time seller)
« Reply #2 on: August 03, 2019, 09:20:07 AM »
Haha
Thank you - I am going at this alone and inexperienced (scared) and the place is “new and stunning” but the adage of location location location stands .... thank you for the psychological pat on the back !

Jon Bon

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Re: Selling case study an asking advice ( first time seller)
« Reply #3 on: August 03, 2019, 09:44:38 AM »
Drop it like its hot!

Terrible rental. Selling is the right call even at one of those low ball offers. Good luck hope the buyer comes through for you.

Chickadee

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Re: Selling case study an asking advice ( first time seller)
« Reply #4 on: August 03, 2019, 10:00:20 AM »
Drop it like its hot!

Terrible rental. Selling is the right call even at one of those low ball offers. Good luck hope the buyer comes through for you.

I’m sleeping better thanks to the sound confirmation from all of you ....and using optimism advantage to wishing the deal to close even if delayed a bit. Thank you for taking time toreador and write back to me ! It had made me feel assured.

Jon Bon

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Re: Selling case study an asking advice ( first time seller)
« Reply #5 on: August 03, 2019, 11:51:51 AM »
Glad to hear it.

Keep in mind it could be so much worse! Yes you might lose a few thousand dollars on this which is bad. But just think if you were underwater on this? You would get to keep this albatross or even mail the keys back to the bank and ruin your credit.

We all make mistakes, I bet selling this place will be the best day of the year for you!


Freedomin5

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Re: Selling case study an asking advice ( first time seller)
« Reply #6 on: August 04, 2019, 07:30:04 AM »
Yes, it could be much worse. Hello? Hit by a bullet? This time it was just glass; next time who knows what or whom might be hit by a bullet. I’d happily lose several thousand dollars to get out of that. I’d rather live in the dumpiest place in a nice neighborhood than the most beautiful palace in the sky in a crappy neighborhood where I might die from a stray bullet while walking down the street.

Chickadee

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Re: Selling case study an asking advice ( first time seller)
« Reply #7 on: August 06, 2019, 06:03:39 AM »
Whew! I am feeling good reading all the replies again.

Thank you again for all the sound advice and support. My cold feet have warmed up!

You are right .. its a headache a risk and a liability ... no way it will ever be belly down again and I need to emotionally cut the cord. :) Thank you everyone!

MoneyMatrix

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Re: Selling case study an asking advice ( first time seller)
« Reply #8 on: August 07, 2019, 09:03:46 PM »
I would tend to agree with the others that a rental in a bad area that you manage from a distance is a good candidate to sell.  I like the idea of rentals, and I tend to think people sell too quickly when they should hold on, but it's much easier to deal with problems if you think the property will increase in value.

Also, if you have high end finishes in a bad area and rent it, they will tend to get damaged.

If the area has gotten worse since 2010 and is worth less, that's a bad sign, since most of the country has bounced back significantly in price since then.
I think from what I know from the post, selling is probably the better option.

Chickadee

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Re: Selling case study an asking advice ( first time seller)
« Reply #9 on: August 08, 2019, 08:37:36 AM »
Thank you @MoneyMatrix for giving me your sound advice ! Full steam ahead on sale!


I am jumping through hoops now. Is it normal for a title company to have you pay for home HOA documents? Should they not provide the HOA with a form to fill?
100 here 100 there is getting pretty annoying but I am trying not be penny wise pound foolish and keep this moving forward.

Chickadee

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Re: Selling case study an asking advice ( first time seller)
« Reply #10 on: August 31, 2019, 01:25:20 PM »
Just a update ..
Replies above gave me a lot of strength.

Keep getting closing delayed BUT all set for next Friday. All boxes checked off and all systems are a go. I am very excited and thankful for the sound advice. Looks like after relators are paid and filing I can still walk away with 94k and change. Whoo hoo I signed that HUD summary.

********BIG lesson learned **********
Location location location, even if new builder is selling " get in now in on this gentrification"

********Small lessons********
Glad I paid off loan so I was way ahead and can walk away.
Not be emotional - cut losses.
There is a premium on buying new construction / being first owner of a property.
Don't buy new and right away if you are trying out a new town you have not been to before and know nothing about the job!

MoneyMatrix

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Re: Selling case study an asking advice ( first time seller)
« Reply #11 on: November 19, 2019, 09:47:49 PM »
Sorry I didn't see your reply. I'm glad you are moving forward.
These things always get delayed. I hope it all worked out for you. Normally I like keeping rentals, but rentals in rough areas have rough tenants.

theoverlook

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Re: Selling case study an asking advice ( first time seller)
« Reply #12 on: November 21, 2019, 07:43:55 AM »
Did the sale close? I hope so!

I'm really curious - where was this? Thanks!

Chickadee

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Re: Selling case study an asking advice ( first time seller)
« Reply #13 on: November 21, 2019, 08:10:29 AM »
Sold!

I am very sorry about the late update it actually closed a month ago, it has been an amazing relief of stress. This is the first month I did not have to worry about something or send in a payment for the maintenance/homeowners association.

 It was in Lorraine Ohio, and guess what, this is the first year I don’t have to worry about the snow and paying for a snow removal fee and paying for an expensive heater repair!

 We tried to put a price on the stress and my husband decided the stress relief is worth at least $250 a month for me mentally. I would agree. Thank you so much for being my friends and helping me through making this decision.

I also learned a little bit about a term called sunken cost, and I think that was exactly what was holding me up.

Mr. Boh

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Re: Selling case study an asking advice ( first time seller)
« Reply #14 on: November 21, 2019, 11:30:09 AM »
Congratulations!

MoneyMatrix

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Re: Selling case study an asking advice ( first time seller)
« Reply #15 on: November 22, 2019, 08:56:27 PM »
It took me a long time to finally sell the losers. Trying to figure out what and when to sell is tough. When I finally did it, it was good.
Glad that you made the right decision for you.