Then, one day the magic happens. You get an offer for your house from someone who wants to buy it.
Now we all know that most sellers will price there houses a little high or, sometimes, a lot high because they can “always come down”. Sure enough, the buyer who wants to buy your house has offered you a price that is lower than the list price. Maybe it’s a lot lower. Depending on your mood or the weather or your horoscope you may decide to counter offer at a price closer to what you have the house listed for or you may decide to reject it outright.
Here is where “buying your house back” comes in.
You want to sell your house, right? You have a Realtor who advised you on what your house would possibly sell for but you priced it higher anyway. Someone has offered you some money to let you move on to the next chapter of your life. What happens next?
Buying Your House Back For Pennies
Let’s say your house is on the market for $499,900.
The buyer has offered you a price lower than what you want or think your should get. Let’s say the buyer offers you $479,900. That’s a $20,000 difference or, as I like to point out, about 4% of the sales price. So you counter offer at a price closer to that number in your head. Let’s say you come down to $493,900.
The buyer is thinking, “No. The house isn’t worth that much to me. Let’s counter offer the seller’s counter offer.” So the buyer comes up a tad. Let’s say the buyer comes up to $485,900.
You’re at $493,900. The buyer’s at $485,900. You’re $8,000 apart.
$8,000 sounds like a lot of money, doesn’t it? Well, $8,000 is 1.6% of your price – the $493,900. That’s right. 1.6%
Do you really want to dig in your heels and pass up selling your house because you want that 1.6%?
Amazingly, a lot of people do. They “buy their house back” for $8,000 instead of moving forward with the sale.
Do You Want To Sell Your House?
To be fair, there are still a lot of people out there that do not have a lot of equity in their home. The simply cannot afford to budge much on the price or they turn the process into a short sale which no one wants to deal with. However, there are lots of people that do, in fact, have equity in there home. Enough to be able to sell it and move on to the next chapter of their lives.
Yet, people rarely keep the big picture in front of them. They get caught up in the fact that they:
- need the money to buy their next home
- need the money to make improvements to their next home
- don’t want to “give the house away”
- don’t really “have to sell” their house
- don’t want to upset their neighbors by selling at a lower price
- get “insulted” because someone has the audacity to offer such a low price.
There are tons of reasons people buy their house back for pennies. They’re all emotional.
It’s not a matter of having to sell your house or needing to sell your house. It’s a matter of wanting to sell your house so your can do what you want to do whether it’s retiring in Florida or moving up to the 7,000 square foot mansion you deserve.
Don’t buy your house back for a tiny percentage of the market value of the home. You’ll be a lot happier in the long run.