Operation New Home: It’s not as simple as pricing your home for sale

My husband working on one of the many remodeling projects on our current home

How do you place a value on freedom? Dramatic statement, but that’s how we felt about our current home. Our tiny two bedroom home, riddled with issues over the past six years, was our ball and chain. It was holding us back from moving forward. Many people choose not to list their home for sale because they know they will have to take a loss. We decided to face that head on. Back in 2006 we bought our home for $215,000 (was listed for $230,000). We thought we got a good deal. We then proceeded to invest an unspeakable amount of money re-doing the kitchen, taking down the wallpaper from E.V.E.R.Y. room in the house, adding a wood fence, adding a deck, and buying a new washing machine and dryer.

So, we were in deep. We knew with the market being what it is we’d have to take a loss. Fortunately, we are frugal and have been saving for this very reason. So, when our realtor came back and told us market value for the home was $210,000 – and that we’d be lucky to get that, we had a family discussion and agreed to list it for her recommendation.

I had several people tell me we were crazy to list it for less than we paid, but the reality is we can’t stay in our 2 bedroom any longer – and they aren’t in our situation so they wouldn’t understand anyways. Besides, we hired a realtor for a reason. I always think it’s silly when I hear about people who don’t listen to their realtor, list their house for way more than the market price and then their house sits on the market for months (or even years) and they end up dropping the price anyways. By which point, people think something is wrong with it because it’s been on the market so long. We wanted to be out as soon as possible, but our goal was a month. So, we met with our realtor agreed to her recommendation and got an enormous list of things we needed to fix up in our home before listing it. We wanted to beat the summer market so she gave us two weeks to get everything done to list it for sale on 3/15/12.

So, we settled in for a crazy two weeks to get everything done!

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