Expert: Jessica Bryan - 4/22/2008

Question
We are attempting to sell our home in a relatively new neighborhood (3 years old) where many of our neighbors bought homes who should never have been buying homes in the first place. Although some comparable homes have been selling near the price we are offering within the last few months, and we are offering at what our market analysis suggested a few weeks ago,  many new homes are being listed now for 20 to 30K below our price as short sales. At this point, if our house sold for what we are asking we would break even (including closing costs). We can't go much lower because we cannot afford to pay a lot at closing. We are able to make the mortgage payments, but we are moving out of state this summer. How does a seller who actually is able to make their mortgage payments, but needs to sell, compete against all these short sales in the neighborhood??

Answer
Dear Marc;
I "feel" your frustration.  Unfortunately, it is a Buyer's market right now and the truth is, buyers don't need to pay full price unless there is no other inventory around. It is the old "Supply and Demand" principle. The only thing I can suggest is that you make sure that your home is 'staged' beautifully so that it looks much better than any of the competition. Let's hope that the short sales sell and remove themselves from the market soon.  It is an excellent time to buy right now since the interest rates are low and the amount of properties priced very competitively is high. So, perhaps you will be able to ride this out and sell your home close to the time you have to move.

I am really sorry that I can't give you better advice.

Good luck and best wishes,
Jessica Bryan