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Even though the country is sitting still waiting for the recession to recede, homeowners and prospective homeowners are practically pacing back and forth during this nail-biting period when no one’s sure of anything. You might think that there is absolutely no good reason to sell right now – but then, again, you may think it’s a perfectly good time. No matter which side of the coin you’re on, there are valid arguments on both. Here, we’ve assembled a list of tips on both ends of the spectrum and hope it’ll help you come to some sort of consensus on your real estate marketplace.
Yes, there has been activity in the real estate marketplace in general. Don’t be surprised to hear that a good number of homeowners are opting to buy new properties, others are selling theirs and of course, others still are waiting it out, even if it means their property is currently suffering a loss. Even though some of the sales are taking a bit longer than average, the sales are definitely there.
Now, if you’re like most people, you are just plain not sure what to do next. So as you hang out with your friends and the conversation turns to real estate, you don’t know what to answer to the question that comes up, “Why would anyone sell at a time like this?” Well. We’ve got a few reasons to share with you.
1. Buyers have been shuffling money from their savings only to fund their properties – and they just don’t want to tap into their secondary resources like their retirement fund anymore. Add negative cash flow to inflated expenses versus rental income – and you have a recipe that calls for SELLING.
2. People with no mortgage and some equity want to get that cash out of the property FAST and put it somewhere safer. So the equation here is lower risk=lower return; they don’t want to take any chances and they’d rather sell to be on the safe side.
3. Homeowners feel they might as well cut their losses while they’re still ahead, instead of waiting 5-7-even 10 years for the market to turn around. They are simply of tired of paying the negative cash flow month after month after month.
4. With interest rates as low as they are, buyers have a TOTAL advantage in this market, so naturally if you want to sell – DO it. There’s a good chance it’d be a successful sale.
1. Some homeowners are banking on the fact that the market will make a speedy recovery, their equity will return and all will return back to normal soon enough. Who knows? It could happen.
2. Owners of multiple properties are getting great use of their vacation or second home – and figure that the enjoyment gained from the use of these places, far outweigh the negative cost to run those properties. So even though they are experiencing losses every month, the price is worth the enjoyment.
3. Properties that generate a decent amount of rental income only need a little extra to top off the negative expenses and owners are willing to take the chance and wait the time out till the market gets better.
The bottom line is, you have to decide what your situation is, what your priorities are and as you head toward a real estate goal, where you want to end up. There’s a misconception that the real estate market is practically stalled right now. This is so far from the truth. Actually, the trend for the past several months, is that buyers are doing up contracts as we speak. Contrary to popular belief, foreclosures are currently on the decline and not on the rise like most believe to be the truth. In fact, short sales are on the rise. When you factor in that aggressively priced properties are selling super fast and sellers are getting multiple offers on them, you can see that there definitely is activity in the real estate arena these days.
Obviously, the choice is yours and we hope we’ve effectively shared with you that you DO have choices in this market – and we’re here to help make sure you make the right ones for you.
