My New Blog

Lately I've had several homeowners with equity in their homes (yes, there are still plenty of you out there despite media reports!) express concern with selling their homes in this market.  Feeling threatened by the short sales and foreclosures, they hesitate to put their home into what they see as "shark infested" waters.   Here is some the advice I've been giving them.

You will have to compete, to some extent, with some of those "short sale/foreclosure listings".  The obvious advantage to these "distressed" sales is the opportunity to scoop up a good deal.  However, keep in mind that these distress sales have their disadvantages, too.  Short sales take time, have delays and  require third party approvals throughout the process. Lately I've seen several buyers who don't want to be bothered with them.  They ask me up front if my listing is a short sale.  Foreclosures also have their disadvantage, too (lack of history on property, limited information regarding the condition of the property since the homeowners are out of the picture, the need to take the property "as is", etc). 

A regular sale by a homeowner has value, and the market is starting to recognize it.  Not everyone has the time or wants to stomach the distress sale.  They are willing to pay market value for a standard sale--a home with a living, present home owner--a traditional sale.

For homeowners who have some equity, it really can be a great time to sell.  While you have undoubtedly lost equity compared to what you had a year or two ago, the price of your replacement home has also gone down.  One of the hidden benefits to these drops in values is lower property taxes--a great long term financial benefit.  If you plan to move up, you'll pay much lower property taxes than you would have a year or two ago!

If you'd like to discuss your particular situation (your equity, home's value, values of potential replacement homes) and some of the benefits of buying and selling in this market, give me a call or email me.

Wishing you the best.  Melinda Johnson, Freedom First Properties. (714) 863-5485