Seller's Math

It goes without saying that when you sell your property you want to make as much money as possible. Certainly no one wants to lose money.

Many potential sellers calculate the price that they need to sell their property such that when all their expenses are deducted, they will break even. This is very useful information and I recommend that every person considering selling their property perform this calculation.

Things can get ugly when the break-even price point is lower than what the property is actually worth. A Seller that refuses to consider an offer less than the break-even point may be suffering from a case of what I call "Seller's Math". "Seller's Math" is simply the refusal to accept the actual worth of their property in the current real estate market, and artificially value the property at a number which covers all the Seller's financial obligations.

For the past ten years, New York City real estate has been steadily appreciating. Assuming you owned your property for at least a year or two and didn't wreck the place, you were virtually assured of a profit. Times have unfortunately changed, and some people are forced to sell at a loss.

There are two pitfalls that I see Sellers fall into with alarming regularity.

1. The refusal to accept that however unpalatable the thought may be, buyers don't care that you may be losing money in the deal.
2. The misguided concept that their apartment is somehow exempt from the price declines that have affected all the other apartments in their building or neighborhood.
   

If you don't "have" to sell, then you can opt to ride the storm out and wait for the market to take a positive turn if you're not happy with the feedback you're getting on the worth of your home. On the other hand, if you positively have to sell, then you are doing yourself a disservice by not cutting your losses and taking the best offer that comes around even if you incur some out of pocket expenses. The longer a property sits on the market, the less likely that it will sell for a good price. Read this to find out why this is the case.

The news isn't all bad. With the best marketing and the best broker, you can maximize your sales price in any market. I'm happy to discuss this further, or answer any questions you may have.

Reach me at: michael.sussilleaux@gmail.com