When you see an overpriced home languishing on the market at the same price, seemingly forever, it’s tempting to think the home owner is greedy, stubborn — or both.
The more sympathetic (and likely) explanation?
The homeowner/would-be Seller is drowning in debt.
Not Underwater . . . But Lapping at their Feet
Specifically, the amount they owe on their home is so close to its fair market value, they literally can’t afford to drop the price — at least not without bringing money to closing (Realtors’ term for that is being “upside down” or underwater).
The same folks who can’t afford to bring money to closing also usually don’t have money for the typical prep and staging that non-underwater homeowners tackle.
Call that giveaway #2.
The clincher?
Looking up what the homeowner paid for the home, and when they bought it (though a surprising number of people who bought long before 2004-2008 are also loaded with debt due to all the cash they took out of their homes).
P.S.: St. Paul Realtor and blogger Teresa Boardman has a nice post on the same subject.
