Many buyers are struggling with the value of their home. Everyone wants to pick a peak market time to select their "sale price" but pick the bottom of the market to buy. First rule: a home is an investment.
If you purchased stocks of IBM 20 years ago at $xxx and today those shares are selling for 10 times as much then what price would you sell them? You sell them for today's market value. On the other hand, if you purchased airline stock in the late 1990's and sold it today, what price would you expect to receive? We accept that when the value of stocks decline then we lost money. It is that simple.
The problem arises because of sentimental value. We, in our minds, value ourselves with the value of our homes. "I have $225,000 in equity." Reality this is like having $225,000 in the stock market. It is only on paper. It is not real until you actually have the green in your hand.
Your home is worth what a ready, willing and able buyer is willing to spend. No more, no less. Yes, in 50 years the value will change. It will also likely change in 2 years but it is the owner/investor that assumes that risk. You are right, the value may increase (as it had for you). On the other hand, the value may decrease (as it also has for you).
Do not expect the buyer to pay you in advance for the potential gain. Are you willing to pay more for Coca Cola stock than the current market value because the seller believes you will make a lot of money?
Consider every offer with deliberate consideration. Weigh it out. You are not selling your home full of memories, sweat and love. The buyer is purchasing an investment without the sentiment. The sentiment and warmth is a treasure that your home provided. You take that warmth with you for the rest of your life.
Saturday, November 21, 2009
Sunday, November 08, 2009
Charlotte Foreclosures are hot commodity
Charlotte Foreclosures remain a hot commodity. As foreclosures in Charlotte come on the market there is a surging demand. A decent deal does not last long.
I am noticing a trend of Short Sales. Charlotte Short Sales are increasing for several simple reasons. Sellers are learning that before their home goes into foreclosure, the banks will consider a short sale with a ready, willing and able buyer.
The down side of a short sale is that the Charlotte home will not "close" for several more months. The banks/lenders are attempting to streamline their process but you must be very patient when purchasing a Charlotte Home via a short sale. It may take 5 months until the lender actually approves the Charlotte home for sale. Banks/lenders must go through an elaborate process to confirm true market value, assess the value of a foreclosure (less than a short sale based on the condition of the average home after the foreclosure), assure that the deal is an arms length transaction and "assume" the amount of the loss.
The decision to assume a loss for the lender is not necessarily easy and without risk. Consider every corporation to reflect "Survivor". There are always people watching and scrutinizing each decision. When you get too many people involved in a decision process, efficiency is lost exponentially.
Charlotte Foreclosures and Charlotte Short sales present opportunities for you if you are ready to buy today. Call me as your Charlotte Realtor at 704-770-6559 for a customized Charlotte Foreclosure home search. Caution: I share all or the greater Charlotte NC Foreclosures. Charlotte homes are not discounted like the hyper inflated markets but you can get discounts. Do not expect to see discounts like you will find in Florida, New Jersey, much of California, Vegas and Phoenix. These markets went up tremendously over the past 5 years. The discount you are really receiving is merely the market adjustments of a super inflated price. Charlotte Real Estate did not experience this type of surge. I share this so that you understand that these are the selling prices. I will also share recent sales so that you will know realistically what offers banks are accepting.
I am noticing a trend of Short Sales. Charlotte Short Sales are increasing for several simple reasons. Sellers are learning that before their home goes into foreclosure, the banks will consider a short sale with a ready, willing and able buyer.
The down side of a short sale is that the Charlotte home will not "close" for several more months. The banks/lenders are attempting to streamline their process but you must be very patient when purchasing a Charlotte Home via a short sale. It may take 5 months until the lender actually approves the Charlotte home for sale. Banks/lenders must go through an elaborate process to confirm true market value, assess the value of a foreclosure (less than a short sale based on the condition of the average home after the foreclosure), assure that the deal is an arms length transaction and "assume" the amount of the loss.
The decision to assume a loss for the lender is not necessarily easy and without risk. Consider every corporation to reflect "Survivor". There are always people watching and scrutinizing each decision. When you get too many people involved in a decision process, efficiency is lost exponentially.
Charlotte Foreclosures and Charlotte Short sales present opportunities for you if you are ready to buy today. Call me as your Charlotte Realtor at 704-770-6559 for a customized Charlotte Foreclosure home search. Caution: I share all or the greater Charlotte NC Foreclosures. Charlotte homes are not discounted like the hyper inflated markets but you can get discounts. Do not expect to see discounts like you will find in Florida, New Jersey, much of California, Vegas and Phoenix. These markets went up tremendously over the past 5 years. The discount you are really receiving is merely the market adjustments of a super inflated price. Charlotte Real Estate did not experience this type of surge. I share this so that you understand that these are the selling prices. I will also share recent sales so that you will know realistically what offers banks are accepting.
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