A Word Problem

1. I bought a house in 2005 for $X. The housing market has not been good since then. For what should I put the house - with several improvements including a new roof, all new blinds and cosmetic changes on the market in 2008?
Answer: $X.

2. I owe a certain amount on my house, having paid nothing down and making moderate payments over the past years. How much do I owe?
Answer: $X-12K.

3. I made an offer on a new house. It's very pretty and quite large and I was utterly enamored with it the first time I saw it online. I boasts an office (library!), dining room, living room (with gas fireplace!) and eat-in kitchen downstairs. There are three bedrooms upstairs and 3.5 baths throughout the house. The basement is 3/4 finished and the garage is 2.5 car sized. There are two decks out back.
a. How much did I offer for the house?
Answer: $2X.
b. How much under the asking price was my offer?
Answer: $10K
c. How much under the appraised price was my offer?
Answer: $25K

4. A couple liked my old house. They viewed it on Sunday and returned on Monday to make an offer. My agent called yesterday night to relay that they wanted to buy it for $X-10K.
a. What should I have done?

"Let me sleep on it," I told Realtor. It turns out that he wrote the offer for this couple, so he was bound by confidentiality as to advising me. I hung up, called him useless and began to fret. I wrote to Friend, and she asked if the price covered what I owed (it did) and would help pay my parents back for part of my down payment on the new house.

"It would start," I wrote, "but wouldn't quite get there." And that's what bugs me. I didn't buy a house as an investment. I knew I wasn't going to live there long enough to make money and, in this market, was praying for something other than a gigantic loss. So the news that someone wanted it within the first 30 days - even for less than I wanted - was quite good. But I've been carefully putting money aside - and hiring plus relocation bonuses help - but I'm still going to be a bit short.

"It's not a good time to try to make money," Friend advised and I nodded before worrying myself to a sick headache over what I should counter-offer. I had been willing to drop the asking price $5K. So asking $130K seemed logical - split the difference between what I wanted to make and what they wanted to pay. But I thought of the work I'd put in - the wide wooden blinds my parents bought me as housewarming gifts, the shelves and garbage disposal Dad installed in the kitchen. The lighting Mom and I replaced in the bathrooms and money I spent on pest control and preventative maintenance. So I did exactly the opposite of what one should do - I went with emotions and asked for more.

I dropped $3K from my asking price, crossed my fingers, and told Realtor to relay my counter-offer. Then I called Dad.

"They offered $X-10K," I said and my mouth dropped open in shock when he said he'd take it. "But you said I underpriced it!" I protested. "I was sure you'd say to decline!"

"A bird in the hand," he said. "Plus, you found something new and don't want to keep making mortgage and utility payments." I ended the call to take one from Realtor, stomach clenched against the idea that I'd run off my only offer so far.

"He said he could do that," he said happily and I squealed with glee. "Really?! At $X-3K?"

"I told him it was worth much more than that and he said he and his wife talked more last night after they left and think it's a great house. So he has to talk with her a little more, but he thinks they can pay that much."

So, with much more luck than skill, I might have sold my house. And, since Industry is paying commission and fees and offering a bonus for selling it quickly, I'm doing way better than I hoped in this transaction. To say I'm relieved is an understatement.

"My priorities," I told Chienne as she lay on my bed and blinked at me sleepily, "are to pay Mom and Dad back, buy you a fence, finish paying off credit cards and then to look at cars." She yawned, much less thrilled by the plans than I was. "Then," I whispered wistfully, "we start buying shelves for a library."