In this changing market, clever math and creative solutions can help get things moving. Literally.
If you’ve had your house listed for sale recently, after the increase in interest rates, the decrease in demand, the rising gas prices, inflation, and threat of a recession, you know things have changed.
You are not the sellers of six months ago, calling all the shots, juggling multiple offers, negotiating a free rent back for two months while you make all the improvements to your next home, wondering what you’ll do with all the extra money you’ll have since you received offers tens of thousands above your asking price.
Oh no, that ship has sailed, at least for now.
You might want to huddle up with your agent and look back at the one or two offers you did receive, which were probably lower than your list price. Sharpen your pencil and see how you can make the numbers work, call the buyers’ agents and see if they’re still interested.
They probably have tried a few times to make a deal and many not have found a seller they can work with. You never know! They’re probably in the same boat with you, riding the market down, ever so slowly.
And if you had a contingent offer on your replacement home, and those sellers canceled on you when you couldn’t get your house sold, which is where the money is coming from to buy their house.
Take a deep breath and see if you can resurrect one of the deals you said “no” to, based on updated math. Remember that if you have a mortgage on the house you are selling, you’ve probably made a few payments since you first looked at the numbers. Re-calculate your cost of sales (commissions, escrow fees, and other fees are based on the sales price) and your updated loan payment amount.
While you’re busy doing that deal, get with your agent and go back to the house you wanted to buy and reopen negotiations with those sellers. If they are still on the market, maybe they’ve already reduced their price and may be willing to give it another try with you, maybe even at a lower price than the last try.
Remember, you’re all in the same boat, riding the same market, responding to the same conditions. See if they will come down by an amount commensurate with the lower price you might be accepting.
If everyone thinks creatively, realizes that the market has shifted, and works hard to make the math work, you can get moving.
Leslie Sargent Eskildsen is an agent with RealtyOne Group West and a member of the California Association of Realtors’ board of directors. She can be reached at 949-678-3373 or leslie@leslieeskildsen.com.
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