This is a question that many of us are asking today…….and the truth is, many sellers are successful today….-but many are not since the buyer has choices. The Central Indiana values have been stagnant or even declining in many price ranges and areas.
If you are in a financial hardship, (behind on payments or soon to be and are struggling to keep the house) and you believe that the house has less value than the mortgage balance, you should call your mortgage lender or Real Estate agent with training on distressed property disposition. You can avoid foreclosure with the proper channels many times. (I will blog on this issue soon-in the meantime give us a call or ask your Realtor if they are qualified to help you).
There are a few common sense answers… Housing is a commodity just like oil, or corn. As supply increases, without an increase in demand-the price will fall or visa versa, as supply decreases, if demand remains constant, prices will rise.
Beginning with the most obvious, “the Seller’s desire to sell must be greater than their desire for a price” at any given time. In this market, the competition is fierce for buyers, and buyers are going to buy the property that meets their needs, is in the best condition, and is offered with the best terms and price.
My outlook on this is simple……a Realtor’s best listings are the ones that have the most motivated sellers. A motivated seller has decided that they will sell their property! Of course, even a motivated seller wants to be savvy in the market. They will do “whatever it takes” to sell the property if they are motivated enough. Closing cost allowances, lower listing prices, free appliances, updated decorator items, free televisions, are just a few ways that a seller might induce a prospect to purchase their property vs. another.
The REO sellers (foreclosure sellers) have the understanding that if they offer their property at or below fair market value, provided that the condition allows the property to finance….their is a very good chance that the price will catch MORE THAN ONE prospect on the property in a short time! Investors and first time buyers are more than willing to purchase a “good deal”.
To get your property SOLD, ask your agent to be honest with you and to have them show you the activity in your area to see “what the market” will allow. I am happy to help you assess your current situation with honest answers to help you decide if now is the right time for you to sell!
Also remember, staging your house will increase your odds tremendously……I heard the quote again today…..”your property is in a beauty contest and a price war”…..Staging and preparing the home will be a future blog as wel l- (I think Ashley will be writing it)……..In the meantime, feel free to call us anytime.
PS Buying up in this market is excellent because you can gain more on the buy-up house than what you might sell “short” or “lose” on your existing lower priced home. Call or ask me for details on this anytime!