Over the past couple of months over 2,000 homes have Sold in the Grand Rapids, Michigan area. If you're reading this post and you have NOT sold your home, you may be wondering WHY your home was not on the list.
While it's easy to blame the market or popular to blame your real estate agent, this doesn't change the fact that thus far your efforts to sell have been unsuccesful.
So, let's explore some reasons WHY your home may not have sold by exploring the answers to the following questions.
Did You Price Your Home for the Current Market?
This is a common mistake that many homeowners make. Perhaps you had an appraisal done a year ago which said your home was worth a certain price. While that may have been the case a year ago, the real estate market is continually adjusting as new buyers enter into the fray.
If your price does not reflect the needs, desires or buying capabilities of the buyers in your market NOW, it will NOT sell no matter how nice it is.
Are You Surrounded by Foreclosures?
When a home in your neighborhood goes into foreclosure, it impacts you in a number of ways. In addition to the sadness of seeing a neighbor loose their home, you also have to deal with the diminishing of value to your home.
Everyone is impacted by a foreclosure, not just the individuals who loose their home. One study indicates that being within a mile of a foreclosed property automatically lops $5,000 ~ $7,000 off your value.
But, there's another issue which is harder to spot with a cursory analysis. It's the homes in your neighborhood that are being Sold as Short Sales. This term refers to a situation in which the bank accepts a pay off on a mortgage which is less than what is owed by the home owner. When this occurs, the recorded sale price is often below what homes in a community would normally sell for.
Did you know that for the past several months in the Grand Rapids, Michigan area, approximately 40% of the homes recorded as Sold on by members of the Grand Rapids Association of Realtors have been either Short Sale or Foreclosed properties?
This market is unlike anything that we have ever witnessed. We will continue our exploration of the Reasons Why Homes don't sell in a future post AND what you can do to improve your odds. Come Back Soon.
Special Thanks to Mary McNight of RSS Pieces for the inspiration for this series.
Copyright 2008 Audu Real Estate All Rights Reserved
Comments(6)