After 18 years of successfully selling hundreds of homes in the Indianapolis, Indiana real estate market, I have to grin when someone says to me. "We HAVE to sell for "this price" to cover our 1st and 2nd mortgage and sometimes even a THIRD mortgage".
I am immediately prompted as a business counselor to ask about how these additional mortgages or HELOC loans came about. Generally, these choices were made to pay-off college debt, maybe buy a new family car, a vacation condo down south, or maybe to pay off a large sum of credit card debt. At any rate, it is simply called shifting debt, which generally catches up to all of us eventually. For more insight on this topic go to www.daveramsey.com
Sellers abroad, please understand that the "potential market value" of your property has nothing to with your HELOC loan, line of credit or 2nd mortgage. We live in a very "instant gratification society" where we want it all now! This is especially true with The Generation Y and Generation X consumers. (I happen to fall in that category and I too find myself mystified by wanting it all now). The same things that our parents worked 20- 30 year's to have.
Todays market is what it is, what it is.... An educated consumer will not waltz into your property and feel compelled to pay off your 2nd mortgage just to be a "nice guy". There are some alternatives to this situation.
#1. Simply sit still for a while; pay down and pay off these additional debts. #2 Review your life plan and your long term financial goals. Seek out the right planner to assist you in what college will cost for this next generation and how to be better prepared for that season of life.
Today's real estate climate is not one where many discretionary moves are taking place. If you are selling in today's market, there is a high level of motivation to get from point A to point B despite the loss involved in selling. Dave Ramsey calls this the stupid tax....
In closing, I encourage my clients to use wisdom when processing a potential move and ask. "Will this move in any way put my family in harms way to move forward right now?" The decision is yours and I would certainly like to earn your business if it is the right time for you to make a move.
www.chriscastetter.com or 317-414-1117
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