I am seeing more and more properties being listed and priced near the mortgage balance that is due.  That is alright as long as that is the true value of the property.  If the value is less and the price is still at that "balance due" level then I believe we are doing the seller and ourselves a disservice.  We are leading the seller to believe that they will be able to walk away from this financial problem and in the end I believe the price could drop further as they lose valuable time being overpriced.  So how do we help these sellers in a rough and sometimes declining market?  First of all not all properties can be helped.  A condo may be a rough property to add value to.  A Colonial on a small lot could be tough.  A Ranch or Cape could have a floor added.  Houses with a small bedroom can be staged correctly to make that room look less like a computer room and more like a 3rd or 4th bedroom sometimes adding many thousands of dollars of value with a very small investment (possibly just a twin bed and linens).  A two family could become 2 townhouses if the lot is large enough...adding a couple of thousand square feet of living space, and that could "bail out" the seller that has seen their property's value decline.  As brokers we need to consult the seller and help them get to that closing table quickly with as little additional pain as possible if they are in trouble.  Add value to their properties when you can...don't add more problems to their plate if their property's value is "below water".

James D. Lowenstern, GRI, LI, IRES

Castles Unlimited®

Realtor®

(617) 733-8280

jim@castlesunlimited.com

www.CastlesUnlimited.com

www.jimlowenstern.com

www.CastlesMag.com

 
Post is included in group: WREA offices of MA, NH, ME and VT
Post is included in group: Castles Broker Network

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