[5-DayForum] 2nd 5 day sale in Charlotte

[Bill Effros]

Rosemarie,

 From what I can see, prices are going down everywhere in the country, 
including NYC, and other places that have considered themselves "immune" 
until now.

Your friend started too high.  He could not get $300,000 in today's 
market, and he knew it.  He hoped by starting high and running the ad 
for a longer period of time he could fool buyers.  But it doesn't work 
that way.

His home is probably worth more than $205,000.  It is probably worth 
less than $270,000.  If he starts at $124,500 and gets 25 calls by 
Friday night he will probably get the most he can get--whatever that 
number turns out to be.

Then he's in the same boat as Lynn.  What does he do next?  Does he make 
up the difference?  Does he negotiate with the bank?

Many, many, many, many, people; especially "investors" paid too much for 
houses when the market was going up.  They are like the "Day-Traders" in 
the stock market bust--everything is fine while the market is rising, 
but as soon as it turns they are left holding the bag.

If you really want to help your friend, you will convince him that now 
is the right time to drop back 10 and punt -- before his situation 
worsens.  Whether he uses the 5-Day Method or not, he will lose the 
least if he bails out now, rather than waiting and hoping against all 
the evidence that things will improve in the near term.

Empty/Investor/ makes no difference.   If he's willing to sell it at the 
market price he can do so in a heartbeat, and this will minimize his losses.

Bill Effros



Rosemarie and Fred Belcher wrote:
>     Last weekend there were two 5 day sales in Charlotte. I went to 
> both, to offer support! Someone I know from the real estate investors' 
> club ran a sale on a house that was appraised recently at $340,000. 
> The house is in a desirable part of Charlotte. He advertised at 
> $149,900. He had insufficient calls on one weekend, so he ran it 
> again. He had 60 calls. The bidding stopped at $205,000.  Since the 
> mortgage is $270,000 he could not afford to sell to the highest 
> bidder, even though that was the intent.
>     I know you will say the market is bad, but Charlotte is one of the 
> few places in the country where the market has not dropped lately - we 
> are still growing here. Things are not moving quickly (that's why he 
> ran a 5-day sale) but prices have not dropped the way they have in 
> other places.
>     I have been encouraging this friend to do this and now I feel 
> really bad that I have no good advice left - only sympathy!
>     Is there a big difference in results if the house is empty, or if 
> it's an investor-owned property instead of the homeowner selling?
>     He is too busy to write to the forum, but I will pass along any 
> advice anyone can give.
>     Thanks
>     Rosemarie
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