Here’s a truly ugly problem:<\/p>\n
I’m being transferred and need to sell my house in a new subdivision. Unfortunately, the builder is still selling new houses. To make matters worse, I bought during the summer of 2005, and the builder has actually reduced its price from what it sold it to me for. Do I have any hope at all of not losing a boatload of money?<\/p><\/blockquote>\n
Probably not.<\/p>\n
In fact, better days are coming by and by — we just don’t know when by and by is.<\/p>\n
If you can afford to, you can lease the property until the builder is gone and homes have appreciated enough to get you out from under. This may mean that the home will be cash-flow negative — the income will be less than the outflow — which means you will have to make up the short-fall out of your income. This may become a losing proposition overall.<\/p>\n
A second possibility is to sell it as a lease-purchase at a future value that will get you out from under. You may still be cash-flow negative, but your buyer will probably be a more conscientious tenant. If he elects not to buy, you will keep any down payment, which can help with your expenses. You could end up doing this more than once<\/p>\n
A third alternative is to sell the property for less than you owe on it, bringing your own money to the closing table to pay off the lender. As bad as this might seem, it’s better than putting a foreclosure on your credit…
\n<\/p>\nTechnorati Tags: arizona<\/a>, arizona real estate<\/a>, phoenix<\/a>, phoenix real estate<\/a>, sellsius 101<\/a>, real estate<\/a>, real estate marketing<\/a><\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Here’s a truly ugly problem: I’m being transferred and need to sell my house in a new subdivision. Unfortunately, the builder is still selling new houses. To make matters worse, I bought during the summer of 2005, and the builder has actually reduced its price from what it sold it to me for. Do I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[12,6,5],"tags":[],"class_list":{"0":"post-438","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-ask-the-broker","7":"category-marketing","8":"category-real-estate","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":336,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/336\/ask-the-broker-what-compensation-does-a-buyers-agent-have-to-disclose\/","url_meta":{"origin":438,"position":0},"title":"Ask the Broker: What compensation does a buyer’s agent have to disclose . . . ?","author":"Greg Swann","date":"September 14, 2006","format":false,"excerpt":"This is an excellent question:Do buyer's agents have to disclose ALL compensation he receives from all sources to his client? It would be important to know who's filling his lunch sack. Example: Builder pays a bonus above the commission listed in the MLS to the buyer's agent if his client\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":361,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/361\/ask-the-broker-why-should-i-take-a-buyers-agent-along-to-buy-a-new-home\/","url_meta":{"origin":438,"position":1},"title":"Ask the Broker: Why should I take a buyer’s agent along to buy a new home . . . ?","author":"Greg Swann","date":"September 21, 2006","format":false,"excerpt":"This question came at an appropriate time. My column in tomorrow's Arizona Republic deals with this topic:Last year it was so hard to buy a new home. We would have had to camp out in some builders' parking lots just to have a chance to be in a lottery to\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":733,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/733\/ask-the-broker-can-buyers-negotiate-for-the-buyers-agents-commission-to-be-paid-to-them-instead\/","url_meta":{"origin":438,"position":2},"title":"Ask the Broker: Can buyers negotiate for the buyer’s agent’s commission to be paid to them instead . . . ?","author":"Greg Swann","date":"December 5, 2006","format":false,"excerpt":"We have been focussing on new construction and have been meeting directly with builders and their agents. We have not been represented by a buyer's agent up to now. Our strategy has been to save on commission by dealing with a single party. We recently looked at several resales where\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":388,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/388\/blogoff-post-11-ask-the-broker-why-wood\/","url_meta":{"origin":438,"position":3},"title":"Blogoff Post #11: Ask the Broker: Why wood . . . ?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This is me asking a question of myself:Why in hell do we frame houses with wood in the Sonoran Desert?Because it's cheap. Look at this: That's a finger-jointed 2x4. An ordinary 2x4 wasn't cheap enough, so the builder is using glued-together mill waste to keep his costs down. Nice. This\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":725,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/725\/ask-the-broker-are-new-build-prices-negotiable\/","url_meta":{"origin":438,"position":4},"title":"Ask the Broker: Are new build prices negotiable?","author":"Greg Swann","date":"December 1, 2006","format":false,"excerpt":"When purchasing a home or condo in a new development are the prices quoted firm or can the buyer negotiate the selling price with the broker? Are the costs of \"upgrade options\" negotiable.The definitive answer: Maybe. New home sales is a retail business. The builder has to move current inventory\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":367,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/367\/realty-reality-calculating-the-value-of-effective-new-build-buyer-representation\/","url_meta":{"origin":438,"position":5},"title":"Realty reality: Calculating the value of effective new-build buyer representation . . .","author":"Cathleen Collins","date":"September 22, 2006","format":false,"excerpt":"Greg just posted an email he received from a West Valley broker, Joe Bourland. I want to respond to his last paragraph:Maybe you should look into your established practices of real estate. There is an immense value in representation. Hopefully, the educated buyer you warn will realize the disservice you\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/438","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=438"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/438\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}