While the number of homes being Sold under 'special conditions' a term which is a euphemism for distress sales in Grand Rapids, MI trended slightly downward in March, home owners will still be dealing with the impact of so many homes in 'crisis' on the market this spring.
The spring market is traditionally the period for the most activity in the real estate industry. In Grand Rapids, MI; a gorgeous day like the one we enjoyed today, is just the tonic needed to spur many potential home buyers into the buying mode.
With the tax credit available to buyers who purchase during this year, there is some expectation and hope that perhaps there is a leveling off on the horizon for the precipitous drop that has driven prices down drastically over the last couple of years.
But, the fact remains, many home sellers will still find that in order to sell their homes, it will be necessary to complete a short sale, as the amount owed on the mortgage will not be paid after the costs of the sale. If you find yourself in this situation, there are some steps you can take to ensure that you are realistic in your pricing when you place your home on the market.
What is a Short Sale?
Short Sales are an option to consider if your home will probably NOT sell for the Amount You OWE on the Loan after you have paid all the costs associated with selling your home.
A Short Sale is a negotiated Solution with the owners of your note (s) which requires patience and persistence. It's not a simple negotiation. It will require your real estate agent negotiating with a potential buyer, jumping through the hurdles to get an acceptable offer to all parties AND THEN Negotiating with the bank & perhaps their subsidiaries including the Investor who may suddenly seem to appear out of "nowhere" with a monetary interest in your property.
The Investor is your Ultimate Money Man & makes the final decision in most cases. You and/or your agent may or may not deal with him/her directly in the process but be assured that their influence is substantial.
While it is true that the bank does not really want your home back...they are bankers, not real estate agents...they DO want as much money as they can possibly get for the loan. After all...you did agree to pay them the amount you signed for.
Now, in situations similar to what many residents of the State of Michigan have faced recently, there are a number of neighborhoods for which the Value of the homes have dropped considerably. First of all: KNOW YOUR CURRENT VALUE.
How Can I Determine the Value of my Home?
It is wise to invest in an appraisal or accurately prepared Comparative Market Analysis. If you would like a referral to an honest, competent appraiser, you can contact our office. Our team at Audu Real Estate can also provide a thoroughly researched Comparative Market Analysis.
This is NOT the time for games. In-fact, if you choose to utilize a Comparative Market Analysis, ask the Realtor ® to create the analysis using ONLY Sold Comparables and Expireds. This will give you the most realistic picture of what the market in your area is currently doing. The fact is that many homes currently on the market will NOT sell, so why use a Non Starter to determine how to price your home. Focus on the Success Stories...the homes that have SOLD to increase your chances of Success!
Having arrived at a price that will SELL your home, Reduce that amount by 1-5%! Then...Put it on the market. Jump into the game like you really mean it. Time is not your friend in this process. As more homes go into Foreclosure, the Value of every home may continue to trend downwards!
Many times homeowners think that because they are not going to be getting much out of their home, they are giving the house away and therefore don't really put effort into presenting the home properly. There is also a temptation to be uncooperative about showing your home because you are resentful about having to sell it. This is a big Mistake. We will discuss WHY trying to get the most out of your home even if you won't be taking money out of the deal is to your best advantage in a future blog post.
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