competing with short sale right next door

14 years ago

Here is a little background information. We are just about ready to put our house on the market. I have been doing a lot of painting, clean-up, decluttering and just doing all that I can to sell my house for the most that I can. Houses in my area that are the same age and similar square footage are going from anywhere around 134,000 to 145,000. I had planned on putting mine at 137 or 139. Here is my problem. My next door neighbor just put his house on the market a couple of days ago. His house has 500 square feet more and has a pool and his backyard is bigger. Houses his size in are neighborhood are asking around 155 to 165. He is asking 135,000. Of course it is a short sale. We knew that he was only making payments once every 4 months or so. He told us that he was doing this on purpose and was going to hold out as long as possible and then just let it go into foreclosure. We knew we had to get our house on the market sooner rather than later but thought we had some time before competing with our neighbor so I was surprised when I drove up and saw his for sale sign. I know people have to do what they have to do to help themselves, but I am a little upset that he put it on the market as a short sale knowing that we are putting ours on the market also.

I guess what I am asking is there any advice at all on what I should do to compete. I am know thinking I will have to drop my asking price to 129. I was going to put in fresh sod and replace my old worn out hard wood in my living room with carpet, but I am not so sure what to invest right now.

On a side note, does he have to disclose that his house half way burned to the ground a couple of years ago? His teenager accidentally set his house on fire and was re-built. Does that have to be disclosed and does this deter people from buying?

What would you do to stand out from the house right next door to you?

Sort by:Oldest

Comments (4)

stapleface
14 years ago
I think just by nature of the fact that his house is a short sale, he may not necessarily get too many offers. I would think most people are put off by the entire short sale process, particularily if they are interested in getting the tax credit.
To make your house pop, I think you just have to make it look like it is well loved and up to date. Without seeing any pictures, there is no way of knowing if things could be improved (if there is anything). If there are light fixtures that aren't completely up to date, consider changing them. Same thing goes for sink/bathroom hardware. Sure, this could cost an extra 2k or so (rough guestimate), but it may help the house sell much faster.
You mention that you want to carpet over the hardwood. How damaged is it? Would it be worth it to have it refinished? IMHO, I would always try to refinish a wood floor before carpeting over it. From a pricing standpoint, I would list it closer to the lower price of the neighborhood. You may also ask the realtor to put wording in the listing about still having time for the tax credit, something a prospective buyer next door won't likely have the option of getting. If you could provide us pictures of your house and his listing, perhaps we could make a more informed decision.
revamp
14 years ago
Just because he's listing it at 135k doesn't mean that's what the bank is willing to take for it. Banks rarely if ever will accept an offer on a short sale that is more than 10% below fair market value on the home.

I would market your house as thought the house next door doesn't exist--but ensure in all your marketing that you promote that yours is NOT a short sale!

Short sales can take 3-6 months to close, and that's if the offer is close to appraisal value on the home and is accepted by the lender(s).
Related Professionals
Arkansas City General Contractors · Athens General Contractors · Brownsville General Contractors · Buena Park General Contractors · Casas Adobes General Contractors · Country Walk General Contractors · Gainesville General Contractors · Markham General Contractors · Modesto General Contractors · Noblesville General Contractors · Owosso General Contractors · Valley Stream General Contractors · Williamstown General Contractors · Garden City Interior Designers & Decorators · Struthers Interior Designers & Decorators
canobeans
14 years ago
Good advice above -- short sales are just not that attractive to average buyers.

On the previous fire -- I would guess that it has to be disclosed, but not sure it would deter a buyer -- we owned a home once that had been built where the previous house had burned down, and we were not deterred from buying it. I'm sure buyers might want to know the cause of the fire though.
witmom
14 years ago
We are currently looking for a new home, and if a house is a short sale, I move on. I don't even bother to consider it. We need something relatively soon, and we can't afford (timewise) to deal with the short sale process. Also, the pool in the backyard would be a huge deterrent for us personally. From the situation you described, I don't think you have anything to worry about.