market value: Why Should Buyers Bother To Buy A Short Sale?
- 09/04/11 12:59 PM
Should buyers bother to buy a short sale? Yes. Here’s why; House values are not going up with consistency, yet. It Costs Money To Resell a House. If You Buy Today, How Will You Pay Resale Closing Costs Later? Buyers know that buying a house is not automatically a successful investment anymore. If the market stays level for years, buyers need to buy now at a discount just be safe later, so they won’t have to bring money out of pocket when they sell. Short sales in general sell for a somewhat of a discount off market value. However, no one … (6 comments)
market value: New Construction on a Bad Lot Could Lead to Foreclosure
- 05/23/11 04:48 PM
Many sellers wonder why their house isn’t selling even though their neighbor’s houses sell for more money and faster. These houses often have inferior lots. Postage stamp size lots surrounded by larger lots. Unusable or dangerous sloping backyards. Houses that back up to massive buzzing electrical transformers, that didn’t exist when the neighborhood was under development. Driveways that are nearly impossible to navigate. Lots that excessively retain water. Houses that have virtually no road frontage, compared to neighbors who have ample road frontage. Houses that have dismal views compared to their neighbors who have spectacular views. Houses on narrow and winding … (3 comments)
market value: When will house values rise back to equal what is owed?
- 05/15/11 09:52 AM
Millions of homes are “underwater” or “upside down”, meaning the debt is higher than the value of the property. I am often asked variations of the question “When will home values rise back to equal what is owed?” I never want to sound negative, but the answer is measured in years. Here’s a simple math problem to make the point If you have $100.00 and you lose 50% of it, you now have $50.00 left. If your new balance of $50.00 now goes back up by 50% (fifty percent), it is only worth $75.00. Because 50% of $100.00 on the way … (45 comments)
market value: The Foreclosing Lender In a Short Sale Can Counteroffer Whatever They Want To
- 05/04/11 11:47 PM
There are two stages of acceptance in a short sale. First the seller accepts the buyer’s offer, then the short sale lender has to accept the offer. The lender may counter in many ways; There is a possibility that the lender will respond with a counter offer HIGHER than the price that the Buyer and Seller agreed upon. Since the lender rarely advises on a list price prior to the listing, there is even a possibility that the lender will respond with a counter offer HIGHER THAN LIST PRICE. In fact, the lender often responds with a counter offer HIGHER THAN … (4 comments)
More owners will fall behind on mortgage payments, which will increase foreclosures and short sales, further fueling the downward spiral of market values. Homeowners who budgeted only $2.00 per gallon and still have to drive to work and bus the kids around can find themselves in trouble in a hurry. Gas prices impact the price of any product that requires delivery by any means of transportation. Those price increases again take away … (79 comments)
market value: Does Any One Know Why The Banks Prefer Foreclosures Over Short Sales?
- 10/09/10 03:15 AM
Lenders push houses to foreclosure by demanding short sale offers to be 10% to 30% higher than market value. It’s a mystery. We can send the lender the electronic log from the lockbox to prove that 20 or 30 agents showed the house and that we got the highest offer the market will pay. We can send them comparable sales showing market value. We can show the banks the long days on market and all the comparable listings that never sold. Somehow the lender overrides reality. Foreclosures Cause Values To Spiral Down. Short Sales Reduce The Lender's Losses. The lender … (16 comments)
Should buyers bother to buy a short sale? Yes.
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