Sale of personal residence

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Sale of personal residence

Bob Stawicki
Real Estate Investor · Member since 2008 · 2 posts · 0 votes

Hello:

New at this and I have a question regarding the sale of my personal residence. We live in a small community about 35 miles west of Aurora, Illinois. In July, 2006, my wife and I refinanced and took a second mortgage on our home so we could do some upgrades and improvements. Our 1st mortgage is for $128,000 and our 2nd mortgage is for $20,000 for a total of $148,000. When we refinanced in 2006, our home was appraised for $170,000. Currently, a realtor told us that it would go on the market for $161,000. This is due to the current market situation and other homes in our area have dropped their asking price and some others have been pulled off the market until better times. I may have an opportunity to move for better employment after the first of the year. My question is: should we perhaps pay down the 2nd mortgage and sell through a realtor, pay down the 2nd and sell the home by ourselves, or not pay anthing on the 2nd and sell by ourselves?

By the way, mortgages are current and there is not any problem with our finances. We both have an income coming in. Also, we never sold property by ourselves, always through a realtor. Can anyone be kind enough to offer some suggestions on how we should go about selling our home given our current situation? Any advice would be greatly appreciated and helpful. Thanks!

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  • Frank Adams
    Loveland, CO · Member since 2008 · 1k+ posts · 123 votes
    19y

    Well, you're really asking two question;

    Pay down the second, and

    Sell FSBO.

    The amount owed, and the amount you can get for the house have nothing to do with each other, neither do the amount owed and the (possible) gain on the sale. Just wanted to clear that up, there's a lot of confusion out there.

    That said, I would work on paying down/off the second just so it's not such a big "hit" at one time when sale time comes.

    As far as going FSBO, it sounds like you've got plenty of time to study up on "how to do it". I like going FSBO as I've often had "unique" houses that many agents would try to market just like any other house. Also I'm often selling the "financing" not the house which makes a big difference.

    That said, the house that I'm in now I'll probably go with an agent, strange, smallish market I'm in, and a bit higher priced, often selling to retirees. Often that part of the demographic doesn't search craigslist and FSBO websites.

    However, the biggest mistakes that I see FSBO sellers making is the following; the (FSBO) buyers are looking to save the 6% commission, and the sellers are looking to save it too! They can't both come out.

    If you're selling FSBO and I'm looking at buying, you'd better have a heck of a good reason for me to look at/offer on your house. Particularly when there are plenty of same as, or similar to houses in your market. Because if you and your neighbor are both at the same price and he's with a Realtor, I'm going with HIM.

    all cash

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  • Account Closed
    Real Estate Investor · London · Member since 2008 · 3k+ posts · 74 votes
    19y

    I agree with All Cash that there is little connection between how you might sell (if you sell) and the decision to pay down the 2nd. One is about cash flow and liquid savings and the other has all to do with a change or job plus location.

    Keep the questions separate and then make a series of decisions.

    John Corey

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  • Bob Stawicki
    OP
    Real Estate Investor · Member since 2008 · 2 posts · 0 votes
    19y

    Thank you very much for the reply to my questions from the both of you. I appreciate it. We have the money to pay down the 2nd and will do so if we do sell. We will also go with a realtor. I think it will take a lot of stress off us, especially if I'm out of town working on the new position.

    Thanks again!

    Kneelix

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