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  • home selling question

    We are planning on listing our home next month. Our realtor wants to list at 1.695 and is confident he will get the asking price. Since we have a lot of equity in our home, we are looking to sell our home in the city and buy another home in the suburbs entirely in cash or with a very small mortgage so that we can be near or totally debt free. We are looking for the new home now. Our listing agent advised us to sell our home first and then rent temporarily until we find a new home. We are trying to sell now as the market is high and may turn soon.

    The issues are: husband and I both work from home and we have an 8 month old.
    The solutions are: lease back or longer escrow or contingency offer that we only close when we get a new home.

    My questions:

    1. Besides staging, cleaning, etc, how does one get asking price? Does it make sense to list at a slightly higher price like 1.715 realizing that we will have to sell for less? There are homes in my neighborhood that sell above asking price but most homes that sell in general sell for a bit less.

    2. If we have to sell below asking, how can we utilize lease back and longer escrow period into the agreement to make our transition smoother? The argument to the buyer being that the offer is below asking and we are in no urgency to move so we want a longer escrow so we can find a new place. Buyers could counter with higher offer to shorten escrow or agree to some fixed period of a 60 day escrow. The other option is the lease back which I am unclear about even after researching it. With a longer escrow, my current mortgage payments add to my equity and tax write off. A lease back helps the buyer with his mortgage payment but I am unclear if I am still responsible for maintaining pool and gardening service and paying utilities.
    I am willing to move out ASAP if I get asking price. In the event that I do not, how can I structure the agreement to better serve my purposes is my question? I want to hear the forum perspective and experience before consulting realtor.

  • #2
    Everything is negotiable.  Put yourself in the buyer's shoes.

    If your house is in demand, you are listing below value, you might have buyers offer over list and be more willing to give concessions like lease back, etc.  People want a turn-key house with no tenant inside.  If you want to stay, your house becomes less attractive.  Even less if you want to have the new owner stop by and cut the grass, clean the pool, unclog your toilets, do housekeeping while you stay in it.

     

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    • #3




      We are planning on listing our home next month. Our realtor wants to list at 1.695 and is confident he will get the asking price. Since we have a lot of equity in our home, we are looking to sell our home in the city and buy another home in the suburbs entirely in cash or with a very small mortgage so that we can be near or totally debt free. We are looking for the new home now. Our listing agent advised us to sell our home first and then rent temporarily until we find a new home. We are trying to sell now as the market is high and may turn soon.

       

      .....
      Click to expand...


      Yeah, that's when they get paid maybe twice, if they then find you a rental. Then maybe thrice, when they find you a new home.

      For #1... The realtor should be able to give you a reason, and show you the data why they picked the price they did... They can generate comparable sales in your area/neighborhood/etc and pick a price based on data.

      A good realtor should be able to explain good options, and not make you nervous about where to live. Don't be afraid to find a new one, if this one isn't helpful.

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      • #4
        Depends on your priorities and how much you value convenience and security over top dollar.

        1.   Price accordingly to market -- with real viable comps.  You know your house and neighborhood.  Use an even eye on the size and condition and price right for that.

        - Staging and ability to show easily makes better presentation.   t

        Issues like:  Leaseback , extended escrows, contingent sales.   can be significant negatives if you want top dollar sale.

         

        it really depends on your priorities -- put a dollar on the staging, leaseback, escrow -- then you can compare pricing and negotiation and pro/cons and worth of each option.

        Most convenient is Sell - Rent/Storage - Buy.  With a 8month old, I'd go that route if you can't float two mortgages or escrows.

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