It’s not easy to sell a home right now. If you’re a seller, you’re going to have a really tough time. In fact, what we’re seeing in the marketplace now is an overabundance of bank owned properties and homes that are being sold short.
Foreclosures
A foreclosure occurs when you fail to pay your mortgage payment for 90 days or more, typically. There is a point at which the bank will boot you out of your house. Then the house goes up for auction. If the house is not purchased in that auction, the bank owns it, and it sits.
Short Sales
This occurs when you sell your home for less than you owe. This requires bank approval, but is much better for you in the long run than a foreclosure.
Yeah… So?
Both of these situations comprise approximately 60% of all homes being sold today in the greater metropolitan Phoenix area. There’s no ifs, ands, or buts about it. Title companies are reporting that they are having to change their marketing focus as a result. This year, we’re seeing approximately twice as many sales per month as we were the same time last year. What we aren’t seeing is twice as many regular resales as we were.
New home builds are down, new home sales are down, and the market’s response is to quit building and offer massive incentives to unload assets that are weighing the banks down. The banks need to see their investments begin to pay off and in order to do that, new home builders have dropped their prices dramatically. In the wake of these price drops come the Short Sales and Foreclosures, which naturally sell for less than the perceived market value. When this happens, your property is less likely to sell.
So, you as a seller have two options. Stay put, or compete for a sale. To compete for a sale, you WILL have to price your home competetively against heavily discounted new builds, short sales, and bank owned properties. There’s simply no other way.
Consider your financial situation and consult a financial counselor to determine what your best option is. Those of you who are forced to sell due to relocation, death in the family, divorces, etc., will need to get real, real fast and face the facts. Price your home right and it will sell.
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Thanks, that must have taken a loads of work to put that together. i don’t like seeing my house value drop though. ha!!