Every single day I see posts here about house not selling, multiple price reductions and no buyers are interested. This is my response to that, as a seller who can't afford to take the 10% equity loss when we're moving internationally to an even hotter market than here.
I live in a VHCOL area 8 miles from the beach in SoCal. We put our house on the market in October last year, and our agent let us know by the time we were ready to list, that the market had fallen off a cliff in just 6 weeks. We got 2 offers, both 10% lower than comps and our unit had major upgrades compared to recently sold units.
So we pulled it and decided to do a total facelift before re-listing. But, the market has fallen even more. We're out $20k in renovations and 6 months of my labor making the place turn key ready. There's been no rebound. So, I'm just waiting it out while doing renovations and refinishing.
My mortgage is $1900 and my interest rate is 2.7% so why would I sell in such an abnormal market?
We're moving internationally but work remote so the option is there to wait, and if circumstances change and we have to sell before the market recovers, so be it.
If you can rent it out month to month or air BNB or take a savings hit and rent in your new location til your home sells, do it.
We had a neighbor list at $500k and it took him 3 years to sell the place, eventually going FSBO to an equity firm.
That house was promptly resold for $300k more 2 years later. As the song says, you gotta know when to hold em and know when to fold em.
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source https://www.reddit.com/r/RealEstate/comments/1uoeg87/if_your_market_has_slowed_and_comps_show/
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