It’s all just a matter of time before the new season 2012 will begin. As we approach the New Year there are a few things sellers and buyers will want to consider before selling or purchasing their home. If you are a seller who has been waiting for the right buyer to come along, then that wait may just be about over. Homes sales have been steady over the past year, however that reflects a decrease of – 1.7%, this based on market statistics generated from MLS (Massachusetts Listing Service). Although median prices for single families have stayed steady at $349-359k, and while condo sales increased - showing promise, sales continue to improve regardless of the small decrease.
There are still some great deals to consider, whether selling or buying, there is a market for both, It’s all just a matter of time. There has been an increase on under agreement contracts for single family, two-family, and condos. If you are an investor looking for that one property that could give you a great ROI, there are still several properties with a list price well below market value and growing strong. However, buyers may have a difficult time getting their bid in with local listings because of investor strategies. For buyers the best thing to do during these strategic times is to be proactive while working with your agent. Keep abreast of the changes that are occurring almost overnight, make sure you are ready to put in a STRONG offer!
For Sellers who are still looking to benefit on the new season of increase, if you are looking towards requesting a short sale from your bank, go for it! Banks are willing to negotiating even more since they are now under a microscope for quick foreclosure processes. If you are looking to sell, now is the time to request short sale information from your bank, and if you are almost at the point of foreclosure, do not wait until the last minute to consider your options. Crossing that bridge when you get to it almost always leads to a disaster, if this happens prepare for the worst, BUT expect the best! As with any contract agreement, following legal procedures is almost evident; you will want to pay close attention to the procedures, processes, and documentations regarding your short sale with the bank’s legal department!
For Sellers, if you think 2012 will be the year your house will finally sell then there are some things you must think through!
FIRST, if you think you are eligible to do a short sale, review your circumstances and the situation at hand. Make sure you are not behind with mortgage payments and have any liens against the property, signaling a RED FLAG with the bank; final results could mean a denial for your request. It is best to give a good first impression on your current position than a bad impression that will have your bank running the other way, ready to foreclose.
SECOND, you should find out what the value of your house is worth and measure that against how much you owe. The bank is going to want to see that you have taken steps to put your home up for sale before actually requesting a short sale.
THIRD, contact your bank and find out how much is still owed on your property, and try to negotiate the fair market value for your home against doing a short sale. Make sure you understand the bank's legal requirements for negotiating a short sale and always, always, always consult a real estate attorney to represent you in the process! In addition, make sure you have a reputable Title Company ready to go the distance for you during the process; this connection will be one of the most important to you during this time. At which the bank will want to review your short sale request, taking into consideration any outstanding liens that have been placed against the property. At this point the bank could either accept or decline to pay off any outstanding liens at closing, so you should be prepared to take care of them on your own, if not it may become a hard sell if such cost are passed down to the Buyer.
FOURTH, contact your Realtor and let them know that the bank has agreed on your short sale request. Once your request for a short sale has been approved you will want to get started preparing your house for the sale. (Paying off any outstanding taxes due, submitting all necessary documents) This should be the time when you feel the most at ease, allowing your Realtor to schedule all showing, submit ALL offers to the bank, and REPRESENT YOU on your short sale 100%!!
FIFTH, Get ready for a somewhat bumpy ride; a short sale is a short sale in name only. It usually takes 3 months or more before it is executed in full – to closing, but could be done in less time if you, the bank, and your Realtor are all on the same page. Buyers will be happy with the results of a quick short sale, if everything goes accord to plan!
With the New Year 2012 just around the corner, It’s all just a matter of time for both Sellers and Buyers, be prepared for the significant changes to the real estate market and take advantage of the opportunities that will present themselves! With the steady increase in home sales, for the Massachusetts area and across the nation, home listings versus sales seems promising; despite reports in the real estate industry in regards to Wall Street and Main Street, there is a light at the end of the tunnel!
With that being said...home sales for 2012 look promising, and we should see more and more properties fall under-agreement and proceed to closing. Just within the last 6 month reports show sales of 2,835 in single family, two-family, and in condos, with a total of 5066 for the entire year; this information reported through December 2012. These numbers are pretty good considering the setbacks with the current economy.
Sellers and Buyers, be prepared to take advantage of the New Year 2012, because …
It’s all just a matter of time