When selling a home, is the sales price the most important thing, or is it the net in your pocket?
There is a listing I have been watching because I wanted to see how the end strategy would turn out.
I had buyers interested in this listing and we submitted an offer. The asking price was originally $158k and did consistant price drops every 2 weeks. When we submitted our offer, it was listed at $142k. We submitted an offer at $134k knowing they were about to have another price drop since it was the end of the next two week cycle.
They countered back full price. What? Excuse me? You've been on the market for 3 months with no other offers and only a handful of showings, and you counter full price?
I spoke with my buyers and we increased our offer to $136k... the sellers responded back at full price again... I got an email from the listing agent stating (paraphrased) "My sellers already countered back full price and will not accept anything lower."
Fast forward a couple of months and the property is now sold. What did it sell for? $138k!! Why am I laughing?? Because they had to continue to make mortgage payments and tax payments and insurance payments and utility payments for two more months to sell the property for $2000 more, PLUS they also gave the buyer's agent a $500 bonus.
Did the sellers actually make $2000 more? You do the math! In this price range, and using an interest rate from 2003 when they bought the property, they were probably dishing out about $1400 a month with all housing expenses. Multiply this by the extra two months it took to sell, and that's $2800.
It COST the sellers $1300 to sell for $2000 more two months later.
So, I ask again, Is the sales price the most important thing, or is it the net in your pocket??
It's ok for a seller to not be so savvy with numbers as they aren't the professional, but a good agent will explain these numbers to you in a way you will understand. Call or email me today if you want to know all your options.
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Copyright© 2011 By Donna Harris, All Rights Reserved. You may re-blog with links back to this post.
*Sellers Net Less to Sell for Higher Price * was first published on donnahomesblog.com.