I think people here will want to know more about your local market since real estate varies a lot by location. Las Vegas or Miami is one thing, Seattle another.

A. They pretty much all said high two's
B. They are willing to do 4%
C. We owe 300,000 on our mortgage.
D. I just want to break even.

4 percent of $299,000 is about $12,000, so I don't think the numbers are working in your favor. FSBO would in theory get you your numbers. On the other hand, you may not be able to sell it at all without representation.

We live in southeastern MA. Not sure what the market is like here...I'm assuming it sucks like most of the country. As far as I know we were just taken off the declining market list (Fannie Mae) There are 229 single family houses on the market for this city. We have a 4 bed, 1 1/2 bath house on a 1/4 acre in a real desirable area of the city. Built in 1910, we completely renovated the inside. Landscaped with an art studio in the backyard. The outside needs some work (paint,new porch).

Here are some photos of my house if it helps.....

Here is a link that might be useful: house pictures

Well that's nice that the realtors are willing to START at $329K. If you really want out of the house, you need to find out what the real market value is and not bother with what you want. The fastest way to sell a house is to offer more house and amenities for the same or less than your competitors. Your house looks nice, but it might not be realistic to think you'll get more than the market. And if the realtors all agreed around the high 200s, that may be where the market is and it doesn't care what you want to get.

The inside of your house is darling! Any chance you can paint the outside? People may just drive by and not want to go in because the outside doesn't have much appeal. For what it is worth, if your neighborhood is really desirable, you may be able to get your price. Two Realtors told us to price in the low ?00s and a Realtor who had sold a couple of other homes on our street priced it much higher. The first people who looked at it offered ?80,000 and we negotiated up from there.

Clemrick....it's not what I WANT to get, it's what I HAVE to get. I have to pay off my mortgage, period. We have faced the fact that we will not make any money. My question is do I take my chances with a realtor and see if I can get the 312 to break even or will I be wasting valuable market time on the MLS when I can sell it FSBO and start off asking 310 and taking our rock bottom price of 302 if it gets down to that?

"Clemrick....it's not what I WANT to get, it's what I HAVE to get. I have to pay off my mortgage, period."

Are you saying that you have no savings whatsoever? So that if you sold for say $295k you couldn't bring a check of $5k to the table to cover the difference?

If you do have the savings then it IS a matter of want to, not have to. If you don't have the savings, and you really have to sell, then you may be a candidate for a short sale.

In any case, the market value of your house is not dependant on your mortgage balance. Buyers are going to pay what other comparable houses in your neighborhood are selling for. If that is in the "high two's" then whether you list at $310, or $312, or $329 is irrelevant. Regardless of the starting point, you'll eventually end up at the same place.

My gut instinct is if the realtors told you high two's, then it won't sell for more than that.

They adjusted their number when you told them what you needed to get your listing, I think.

You can always list it with them at 329, if it doesn't sell, then you know. Based on your post, though, you're probably going to be really miserable during the listing because you'll be expecting it to sell at that price and short of a miracle it probably won't-thus frustrating you further.

I was hoping someone from your area might chime in on your market. Its hard to find reliable market info because at least here with the realtors I talk to they seem to sort of soft sell any problems, but you really need to do a little more research to know what your chances are of selling at the higher end.
You say there's 229 houses for sale in the city but you are in a real desirable neighborhood - what's the inventory in that neighborhood? If its in short supply that's to your good. Were your realtors neighborhood experts?
I worry that you maybe bought this and put a lot of money into it recently and are needing to get it back - does your house seem overpriced for the neighborhood or type because its been totally renovated recently? Appealing to some to not have to fix up, its harder to market I think.
If your thinking of FSBO - do you have a real estate lawyer to do paperwork and how much do they charge? Also, have you investigated the cost of a discount MLS broker? I have no idea, a wag of maybe 1,000 for each? Plus some signs, newspaper ads, maybe a lockbox - lets say 2,500 for you to sell it yourself.
You mention "valuable time". Are you worried about the market heading down in your area? Or do you have time constraints?

I just recently listed on the north shore of MA (about 40 miles north of Boston). Our homes are selling for way less than the assessed values. Those that are not priced accordingly are sitting on the market, now stale. We priced $20,000 below assessed value - something that few other homesellers have done. Our realtor said when the home is priced right, then the buyer will appear. We are taking her advice and paying her for her professional experience in this difficult market. We were shown what homes in our area sold for vs. the asking price, how many days they were on the market, how many had to reduce the price, how long after reduction it took to sell, who was still on the market and for how many days, etc. It's all there what you need to do. It has nothing to do with what you need to get and everything to do with how much a buyer is willing to pay. You say you can't take a $5,000 hit? Put some things on eBay or craigslist and do it quick. Your home value is falling as we type.

"I just want to break even. Any advice? "

If you are unwilling or unable to lose money, try FSBO.

Another advice is to face reality. Few investments are guaranteed to go up. It'll probably cost you $$$.

I really don't have any savings....a few thousand set aside for my girls, thats it. We did put to much money into this house, not that it didn't need it, we just didn't have it. We refinanced and refinanced and got into an interest only mortgage. We only paid the minimum and ended up driving the principal up 9,000 in 2 1/2 years. Were we completely and utterly stupid? YES! Reality has slapped me in the face and now I am ready to step up to the plate and try to get out of this mess.
Just wondering the best course of action.
Thanks for all your advice.

So, it sounds like you aren't selling because you need move out of the area, right? You may just have to stay in the house for a couple more years until the market comes back.

And what was behind the refinancing? Did you pull equity out?

Is the studio something that could be rented out to help with the mortgage for a couple of years until your situation improves?

It sounds like you're feeling overwhelmed with your mortgage situation, but what other alternatives do you have to selling? If you do sell, will your situation really improve, or do you just get yourself into a different difficulty?

So many people seem to panic at a low point when it's not in their best interest to make a move.

If you're not moving to a new area, what's the harm in listing with a realtor for the low 300s price and just seeing what happens? Nearly everything anyone guesses about winds up being wrong. Only by actually trying will you find out how wrong, and in what direction.

terriks....No, I don't HAVE to move....the plan was to stay another 2 years till my youngest finishes high school. From what the realtors told me it will take another 5 years for this area to start to turn around. I am very unhappy here and thought why not get out now if it's not going to get any better because I am OUT in 2 years anyway.
And yes, we pulled equity out when we refinanced. I would say 90% of the refinance went back into the house (new roof, driveway,studio, etc)
Spacific....I use the studio for my mosaic business, so I can't rent it out.
I know this is mostly a WANT situation and I so appreciate everyones advice. Just trying to plan my next move here.

You're in a tough spot. If you price too high with a realtor, you probably won't get any showings especially since they all said 'high twos'.

You take a chance with FSBO because it's alot of work. However, what about the lowcost realty companies like "Help U Sell" where you pay a flat fee, it gets on the MLS and you handle showings? You could try pricing a bit higher, but it will still most likely cause you to chase the market down.

I love your house. It is absolutely beautiful inside. The kitchen is fabulous. Everything looks clean and new. However, the exterior does not match the rest of the house. Curb appeal is everything and because the exterior needs work, you may lose potential buyers thinking the inside matches with the outside.

I think you should at least paint the outside so that the curb appeal is on level with the rest of the house.

Is there any way of telling if FSBO homes sell in your area? In ours, I do not ever remember seeing a FSBO sell (in 20 years). In our community, FSBO signs go up for 3 - 6 months, then are replaced by regular RE signs. I wish it weren't so -- I have friends and relatives out West who say homes are regularly bought and sold FSBO, but it doesn't work in our area (far north burbs between Chicago and Milwaukee).

Since you don't absolutely have to sell, why not list your home with an agent and if you can't get the price you need, hunker down for two or three years. Of course, if you need an expensive repair or replacement on anything in your house before then, you will fall farther behind. It is really a shame that the RE market is in such a mess right now.

My 2 cents:

If you really don't have to sell and can hang on tight for a few years (say the original 2 years), do so. Things may change for the better. Don't do anything rash that may make things worse. You stated in a previous post the Fannie Mae took your area out of the 'declining' category - so in two years, you may be able to 1) sell without taking a loss; or, 2) save enough money to cover a loss if there is one.

You have a beautiful house with a studio for your business. How easy is it to find such a set up if you sell and move? Would you have the do the same thing (renovate, build a studio, etc.) all over again?

I found your photos of your mosaics. Beautiful! I especially like the mosaic balls. I don't suppose you could ramp up your business to cover the debt?

Are you still in the zero interest or negative morgage? If you stay I suggest that you add enough to your payment so that you don't get an even bigger morgage. Just a small amount can make a huge difference.

The house is very nice but if the house is only worth in the high 200's I would be surprised if you would be able to sell for anymore than that. Just because you owe $300,000 does not mean that buyers will be willing to pay more than the house is worth.

sparksals......thanks for the compliment. Unfortunatly the outside needs more than just paint and all 3 realtors said to not put anymore money into it.
kit2007......that's what I'm debating, just going with a realtor and seeing what happens
jy md......thanks, I am doing what I can to get my business going, have a couple of shows coming up and I sell my stuff on Etsy.com.
happyladi.....if we stay we will have to remortgage to a fixed rate, there is no way I'm staying in this ridiculous mortgage.
grayce.......I'm not stupid....I don't expect the buyers to pay 300 cause I owe 300! One of the realtors comps were pulled based on the fact I have no garage! The houses weren't even in the same ballpark as mine based on style, age, location, extras, etc! Like ky114 points out...for the most part they are just "guessing" on what I can get. Nobody knows for sure. That is where my dilemma is.

I am not suggesting that you convert your studio back to a garage but how hard would it be for a buyer to do it? It's something you might want to find out because many buyers might perfer a garage to a studio. Knowing how much it would cost might be helpful when selling.

You might consider a discount realtor that will put it on MLS for you. You would still need to give the normal % to the selling agent.

Good luck, I hope everything works out for you.

If you can afford to stay, stay and refi into a fixed rate mortgage. even a refi may be problematic if the appraisal is less than the outstanding mortgage balance.

if you really do not want to stay you will have to do a short sale with the ok of the mortgage company. they WILL review your financial situation and if you can afford to pay or refi into a fixed they most likely will not agree to a short sale.

you can probably get the mortgage company to refi to get rid of the IO mortgage.

good luck

It might be worth it to spend a few hundred on new shutters. Or just take off the fakey-fake ones.

Those shutters are awful and everything else is nice.

I don't know your market and certainly can't tell you what your home should sell for, but it should show very nicely if you can do just a little for the curb appeal. If the neighborhood is good and desirable, it's too bad you aren't enjoying it, but someone else should. I suspect the realtors are having a hard time because of a difficult market and/or the fact that your charming studio could be worth nothing to one buyer and worth a great deal to another. You'll need to play it up for the later.

By way of example, we are facing a 25% increase in our appraised value this year because the only two homes to sell in the last 2 years have been very large corner lots with huge backyards on a greenbelt. As our area develops out, lots are getting smaller and there are some folks who will pay a HUGE premium for a large lot and a greebelt. My backyard though, on the oppposite side of the street, is small. I have to go in and argue that the recent comps on my street are not as accurate for my home as the next street over. Some neighbors are protesting and others are not -- they want to refi and remodel. The appraisal picture will continue to get fuzzier as the area ages.

Back to your home and getting it sold. From what you have shown, the inside is lovely and the studio is charming -- play them up, but you have to get folks inside to do that. That means doing what you can to help the curb appeal and draw them in.

If you can't paint the whole house and fix everything, try to fix anything that is structural and small enough that you can do it yourself without a significant expense. A small piece of rotted trim or a hole that can be filled and touched up might be repaired at little or no cost to thinking of but suggest thousands of dollars -- even no interest in making an offer for a buyer.

For the cosmetic side, you just need enough to draw them in. Can you use your artistic nature and create a slightly weathered, but warm and inviting picture? The white shutters do stick out like a sore thumb. They were probably picked to tie in with the white window frames, but by themselves, they aren't working. I'd paint the porch columns, spindles, trim, maybe even the brick (or sandblast off the paint on the brick railing and spindles, but that would be more money and mess if you can't do it yourself and don't have the equipment). I was originally thinking black -- reminds me of New Orleans and wrought iron, and use it as a neutral backdrop to the plants and some color. Maybe more white or another color. Maybe someone with photoshop can help you there.

Looks like the garden has color but could be a little neater -- maybe just trimming. Do you have a couple of mosaic pieces to add some color and interest? A birdbath or one larger piece might do it, or a couple of smaller pieces.

If your studio has a bath and can be used as in-law unit, guesthouse, a rental, etc., really play that up in your listing and perhaps also in how you stage it for showing. It may be only workspace for you, but find ways to include some furniture and/or accessories to suggest an additional living area.

Do some work yourself to carefully analyze the comps you are being given. What do they have that is the same, what is different, what is their condition (cosmetic and structural -- inside and out) and what would a person have to spend to get your home into tiptop shape?

Good luck.

Thanks again to all of you......I have to laugh about all the comments about the shutters! They are awful aren't they? The previous owner had those beauties put up right after the spray paint job. We haven't done anything to the outside of the house since we bought it except landscape,new roof, and driveway. We were getting to it but ran out of money. Maybe we did it backwards, I don't know. The inside is done though. (just waiting on new carpet for the stairs and our bedroom)
I'm afraid new shutters would just draw more attention to how bad the rest is. The porch needs to be rebuilt (pulling away from the house) and the house needs to be repainted along with replacing some rotting shingles on the attic windows. We have gotten estimates to fix everything....from 18,000 to 30,000. I thought about doing it just to get it sold but the realtors said we won't make the money back. The fact that we don't HAVE the money puts a damper on it as
well!
The studio has no running water. It does have heat/ac and cable TV. It would make a great room for kids to hang, an office or a pool room! This whole street is zoned for business.
I feel like I'm in a lose, lose situation sometimes, but we've done so much work already we are just going to try to sell FSBO and see what happens.
All your advice has been very helpful! :-)

Lisa,

Re shutters: find your nearest architectural salvage warehouse and look for old shutters there, even if just for the front of the house. Paint them and then mount them correctly (i.e. not outside the trim).

Regarding the studio: if you do sell FSBO, make sure you put info sheets featuring the studio at places where working artists might find them: art schools, museums, etc., but also, perhaps voice or music teachers, massage therapists or PT workers, or someone else who needs a little office Feature studio in your advertisements since it's a unique thing.

But considering the studio, if you can't rent it out because you need it yourself, what are you going to do if you do sell? If you could make do after the sale without it by using another part of your living space, then can you do this now and rent the studio while you get your finances shored up?

Meanwhile, I would see about refinancing (can what Congress is proposing help you?) and then stay put since the house fits you and you'd like to stay. Don't let panic push you out of a salvageable situation if you can find a way around that.

Another thing to do would be to hire an appraiser who specializes in work in your area and will work with you, explaining the appraisal process to you. Then you'll have good comps to base your decision on and a better undertsanding of how they are used to arrive at estimated market values. It will give you more accurate info as to the current value and time trends than a typical REA presentation. It should only cost a few hundred dollars to get an appraiser since you are in an urban/suburban area, without a lot of rural property. Ask your attorney to suggest a few suitable appraisers.

Good luck!

Molly~