Walking the Walk: SOLD Personal Investment Property for Less Money Than I Wanted

NEEDED CASH FOR COLLEGE TUITION

It is no secret the real estate market has been stuck in low gear. However, my personal expenses have not geared down as quickly and I needed cash for one daughter's college tuition (Vanderbilt University) and another daughter's private school tuition (The Lovett School).

PUT INVESTMENT HOME ON THE MARKET

My husband Tim and I decided to put one of our investment properties on the market to generate some cash flow. We had been renting this 1960s brick ranch for about 10 years and the tenant moved out in May (bought a new home nearby).

HOUSE PREPPED FOR SALE:

Tim got the house prepped for the market using all the advice and techniques I pass along to my sellers (www.englishteam.com). New paint inside and out, lawn manicured, new light fixtures and fans, lots of cosmetic changes, removed old wallpaper etc. The house looked great!

FIRST FEEDBACK FROM MARKET

We had showings immediately but no real interest. One buyer bought a more expensive home down the street that we thought had less to offer than our property. After three weeks we got on the move again and refinished the hardwood floors (approx $1,500) and they looked great. We also got some prices for granite counter tops (around $1,800)

FINALLY A BUYER

After a month on the market we got an offer. The buyer was a nice young man purchasing his first home, The offer was "low" but he was well qualified and serious. We sat on the offer overnight, prayed about it, and made a counteroffer that was far less than we had anticipated receiving for the home, but met the buyer halfway so to speak. A win-win solution. The buyer accepted the counter offer.

INSPECTION

Though we sold the home "as is" the buyer had the right of inspection and promptly had an inspector at work. No real surprises though a couple of items that needed attention. The surprises came when the buyer got bids to replace the roof. Though fully functional, the buyer had stated early on that he had budgeted to replace the roof and HVAC. Both bids came in higher than expected. The roofing in particular had really gone up. Bids came in $8,000 to $11.000 and the buyer had budgeted $6000.

NEGOTIATING THE INSPECTION

The buyer is very conservative and we knew he would not finalize the sale if he had to put out additional cash. Should we let this buyer walk and hope for something better?

No, I took my own advice and met the buyer halfway on an additional contribution for the roof. About $2,500 additional expense that I had not budgeted.

If you are selling a home in this market, you have got to make some sacrifices. Do not look at comparable sales older than 3 months when valuing your home. And anything from 2008 is totally out of date and will not be helpful in valuing your home for the present market.

Sally English

The English Team

RE/MAX Executives, Inc. Atlanta Georgia

www.englishteam.com