Help on selling my log cabin home please

[Lisa Richards]

[b]Hi I have a log cabing home in Okeechobee florida. We are now on our secound contract with a buyer, we can not get the banks to approve a loan for anyone. The problem is the comps, they want another log cabin that has sold in the area with in the last year, last bank wanted one with in 5 mile we are in a rule area and there arent any. I am now to the point where the only way I can sell my home is with a cash buyer or private invester, we are still under contract with a potentual buyer, and we have a contract on a place when ours sells but are running out of time. Anyone have any ideas?

Thank you
LadyRichards

[Jon Holdman]

Let me ask again about the comps.

Are the similar conventional (non-log) properties that have been sold nearby and recently? If so, are they priced similar to what you're asking? Is the lender concerned your property is worth less than a similar (i.e., same beds, bath, overall design, square footage, amenities, location)? Or, are you asking for a higher price due to the higher cost of log homes (my brother's situation) and the lenders don't see the higher value?

If you really must sell, and you're looking for more than similar conventional houses, you might just have to suck it up and take the lower price. You say you're going to have to turn to a cash buyer or an investor to move the house. You've just kicked 95% of potential buyers out of your buyer pool, so you're going to give up a bunch on price. Your investor or cash buyer knows they're in the drivers seat, especially in FL, and will use that to beat you up on price.

If you're asking for a similar price as for non-log houses in the area, and the lender is worried that log houses are worth less, then go find some log house sales even if they're not nearby. Once you've found some, find sales of similar conventional houses. Use these to determine the price as if the sold log house was a conventional house. Then compare that value to the actual sales price. Lower? Higher? Similar? Use this to go back to the lender and say "log houses are xx% higher (or lower) than conventional houses". So, even though these are not "comps" in the sense of being nearby, they can help you establish a relative value between log houses and regular houses.

Realize that the lending environment is just horrible right now. Prices in some areas, including FL, have been beat into the ground. Lenders are looking for any excuse not to lend. Cash buyers know they have huge leverage. No investor every pays retail price, which is what most homeowners want to get. So, you're stuck battling this through with lenders or taking a really lowball offer from a cash buyer or investor.

Don't discount the owner financing too quickly. If you by chance own this house free and clear, then you can use the income from the note to pay a mortgage on the new place. Your new lender may want to see some seasoning on the new loan, first, though. Its not clear but if you have a new house on the hook that needs to close soon. If so, that may be difficult.

If you have an existing mortgage, there are still "creative" ways to sell with owner financing. Lease/option, land contract, or a wrap mortgage. All of these may cause you trouble if you're getting a mortgage on the new place. Lenders will want to see enough income to cover both loans.

There's no miracle in today's market. Price sells. If you're limiting your pool of buyers, you're going to take a hit on price. If you can possible adjust your price on the existing contract to where the lender says OK, that may be your best bet.