{"id":948,"date":"2007-01-26T07:16:19","date_gmt":"2007-01-26T14:16:19","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=948"},"modified":"2007-01-26T07:16:27","modified_gmt":"2007-01-26T14:16:27","slug":"recent-refinancing-can-make-selling-a-house-costly","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/948\/recent-refinancing-can-make-selling-a-house-costly\/","title":{"rendered":"Recent refinancing can make selling a house costly"},"content":{"rendered":"

This is me in this morning’s Arizona Republic<\/i><\/a> (permanent link<\/a>).<\/p>\n

 
Recent refinancing can make selling a house costly<\/b><\/p>\n

A buyer e-mailed me a question about a house she might be interested in.<\/p>\n

At first glance, it looked promising: A newer west-side home in good condition. The price wasn’t awful, maybe $10,000 over what it should be, and it was well within what she could afford to pay.<\/p>\n

The house has been on the market for more than two months. The seller was transferred and has moved out. These are harbingers of a motivated seller. The listing even says so: “Motivated seller.”<\/p>\n

This is the prologue to a story that should have a happy ending, right?<\/p>\n

Probably not.<\/p>\n

The seller should have had plenty of equity in the home, which from our point of view means plenty of wiggle room on price. We know going in that homes like this are selling now for about the same prices we would have seen in June or July 2005.<\/p>\n

Regardless of what the seller might want, the price the home will sell for will be set by the prevailing market — a buyer’s market.<\/p>\n

So what’s the problem?<\/p>\n

The seller refinanced the home in August 2005, taking out most or all of the accrued equity.<\/p>\n

In principle, there’s nothing wrong with this. Homeowners can convert high-interest debt on taxed income into low-interest, tax-deductible debt.<\/p>\n

But if the homeowner has to sell soon thereafter, particularly in a down market, we can hit an iceberg.<\/p>\n

The seller borrowed $235,000 in the refinancing. That will have to be paid, along with the marketing costs of the home, plus closing costs. The absolute minimum the seller can accept for the house, without bringing his own money to the closing table, is at least $5,000 more than the home is worth.<\/p>\n

In this circumstance, sellers are apt to say, “But where’s my equity?” The answer: You already spent it.<\/p>\n

We may pursue this house anyway, but if we do, it will have to be as a “short sale,” with the seller paying the shortfall between the purchase price and what is owed on the home.<\/p>\n

<\/p>\n

Technorati Tags: arizona<\/a>, arizona real estate<\/a>, phoenix<\/a>, phoenix real estate<\/a>, Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is me in this morning’s Arizona Republic (permanent link).  Recent refinancing can make selling a house costly A buyer e-mailed me a question about a house she might be interested in. At first glance, it looked promising: A newer west-side home in good condition. The price wasn’t awful, maybe $10,000 over what it should […]<\/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":[6,5],"tags":[],"class_list":{"0":"post-948","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","9":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2223,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2223\/the-odysseus-medal-failure-is-a-costly-but-cogent-instructor\/","url_meta":{"origin":948,"position":0},"title":"The Odysseus Medal: “Failure is a costly but cogent instructor”","author":"Greg Swann","date":"November 14, 2007","format":false,"excerpt":"Here are the Odysseus Medal winners, finally. My apologies for being two days late, but my little hop to Las Vegas put me way behind on everything. I run with a fast crowd here, but I don't cut them any slack. I am never nice for the sake of being\u2026","rel":"","context":"In "Blog Carnivals"","block_context":{"text":"Blog Carnivals","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blog-carnivals\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1872,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1872\/what-can-sellers-do-differently-to-get-their-houses-sold\/","url_meta":{"origin":948,"position":1},"title":"What can sellers do differently to get their houses sold?","author":"Greg Swann","date":"August 31, 2007","format":false,"excerpt":"This is me in the Arizona Republic (permanent link): \u00a0What can sellers do differently to get their houses sold? There are three houses for sale on my street. All three are comps to each other -- around 2,000 square feet, three bedrooms, two baths. They're priced within a thousand dollars\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":[]},{"id":226,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/226\/the-reporters-prayer\/","url_meta":{"origin":948,"position":2},"title":"The Reporter’s Prayer . . .","author":"Greg Swann","date":"August 20, 2006","format":false,"excerpt":"On bended knee: \"May almighty god spare us from a world in which facts can be checked.\" Catherine Reagor in today's Arizona Republic:Check out the listings on homes: The phrase \"motivated investor\" describing the seller is pretty common.There are 46,680 active listings in the Arizona Regional Multiple Listings Service right\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":[]},{"id":2181,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2181\/a-consumers-guide-to-the-divorced-real-estate-commission-will-the-negotiating-their-buyers-agents-compensation-make-buyers-more-practical\/","url_meta":{"origin":948,"position":3},"title":"A consumer’s guide to the divorced real estate commission: Will the necessity of negotiating their buyer’s agent’s compensation make buyers more practical?","author":"Greg Swann","date":"November 8, 2007","format":false,"excerpt":"Part II: How buyers can finally take a seat at the grown-up's table When a potential home-seller calls me to set up a listing appointment, very often the first question I will hear is, \"How much do you charge?\" A motivated seller is done with the house, and now all\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":[]},{"id":7923,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7923\/handling-a-deal-with-a-foreign-buyer-or-seller\/","url_meta":{"origin":948,"position":4},"title":"Handling a deal with a foreign buyer or seller","author":"Phil Hodgen","date":"April 17, 2009","format":false,"excerpt":"I am an international tax lawyer. I handle lots of real estate transactions with foreign sellers and buyers. I don't have a real estate license, and I don't ask for a piece of the commission. Got that out of the way for ya, didn't I? Here are a few things\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2155,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2155\/how-low-can-they-go-negotiating-a-real-estate-bargain\/","url_meta":{"origin":948,"position":5},"title":"How low can they go? Negotiating a real estate bargain","author":"Greg Swann","date":"November 3, 2007","format":false,"excerpt":"This is my column this week from the Arizona Republic (permanent link): \u00a0How low can they go? Negotiating a real estate bargain Everybody wants a bargain. The question for homebuyers is, how do you get one? I was in a property last weekend with a buyer. The home was listed\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\/948","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=948"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/948\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}