What Now?
By Al Segalla

Our local real estate market has been experiencing a reduction in volume starting in 2006 and continuing through July 2007. This has resulted in a longer marketing time and consequential price reductions, following state and national patterns. Based on the law of supply and demand, the trend should correct itself. Fortunately, this has no direct effect to those who are not in the market place.

Buyers and Sellers have real questions on what to do. My advice to each is:

AS A BUYER, now is the best time to buy as you can save 20% - 30% in price and still have reasonable financing available. The financing market is tending to be more conservative due to a large number of foreclosures. Look for price reductions, which will begin to happen when Sellers have equity and are more concerned about selling than price. Be sure to get yourself pre-qualified with a lender and stay current on what loans are available for you now.

Many homes have loan balances higher than present value. "Short Sales" occur when the lender will allow the loan to be paid off at a lower amount rather than lose more money in a foreclosure sale. However, this process is problematical and time consuming. It is better to buy clean at reduced prices.

AS A SELLER, now is not the best time to sell. If possible, postpone selling for a year or two. If you are in foreclosure, talk to your lender about the possibility of a "short sale," or deeding your property to the lender to avoid a foreclosure sale. This is better than walking away from the obligation and will be better for your credit. Find an agent familiar with "Short Sales."

If you have equity, list your property at a value similar to the other listings and then reduce the price to a value comparable to actual sales. Be sure the price reduction is well advertised. If this is your home, start thinking of it as simply a house you own and clear out all clutter. Remember, you are selling a "house" but the buyers are buying a "home" for their own clutter.

Contact Al Segalla, Realtor, by email at alsegalla@mindspring.com
or visit his website at www.bambiland.com

 

 

 

What Now?

Our local real estate market has been experiencing a reduction in volume starting in 2006 and continuing through July 2007. This has resulted in a longer marketing time and consequential price reductions. This trend seems to follow state and national patterns and is based on the law of supply and demand and because of this, will tend to correct itself. This has no effect to those who are not in the market place.

Buyers and Sellers have real questions on what to do. My advice to each is:

As a Buyer, now is the best time to buy as you can save 20 to 30% in price and still have reasonable financing available. The financing market is tending to be more conservative due to a larger number of foreclosures. Look for price reductions which will tend to happen when Sellers have equity and are more concerned about selling than price. Be sure to get yourself pre-qualified with a lender and be current on what loans are available for you now. Many homes have loan balances higher than present value. "Short Sales" occur when the lender will allow the loan to be paid off at a lower amount rather than lose more money in a foreclosure sale. This process is problematical and time consuming - better to buy clean at reduced prices.

As a Seller, now is not the best time to sell. If possible, postpone selling for a year or two. If you are in foreclosure, talk to your lender about the possibility of a "short sale" or deeding your property to the lender to avoid a foreclosure sale. This is better than walking away from the obligation and will be better for your credit. Find an agent familiar with "Short Sales". If you have equity, list your property at a value similar to the other listings and then reduce the price to a value comparable to actual sales. Be sure the price reduction is well advertised. If this is your home, start thinking of it as a house you own and clear out all clutter. Remember, you are selling a "house " however, the buyer is buying a "home" for their own clutter.