I have just about lost patience with the short sale process. I showed three homes today to different clients, and two of the three homes will be in a short sale position. They are currently listed for sale for what it would take to get the Sellers out clean.....but the value is not there. My Buyers are frustrated....because of the lengthy short sale process, even if they love a home, they may not be willing to wait out the uncertainty of a short sale.
I understand why sellers are in a negative equity position....and though some can just stay put until the market recovers a bit, others are not so lucky. Any glitch in income, a layoff, a transfer, an illness, can put people in a position where they must sell. What I see on a weekly basis is sellers who have called me to perform a market analysis on their home that they bought in 2005 or 2006. We move that often typically.....now is the year for them to move on, upsize, downsize, whatever. Never before have real estate agents been the ones to have to point out to clients their unfortunate financial reality. I hate having to be that person.....I have had people cry on me.
Unfortunately....our values have softened so much that the market can't even break these sellers even, much less earn them any money. Now....it is a frustrating conversation to have with a seller who has drawn equity out of their home already, if they expect to earn more with a sale. I try to explain to them that they have already USED their equity, but it seems like some just don't get it. We have become equity junkies: It was the norm to sell a home in 2006 and make $100k on it. Now....not so much. I am thrilled for clients who get out clean.....that is the new goal.
Why would you sell now if you can only get out clean.....because there are some smokin' hot deals out there.....NOW is the time to move up (that $1 million dollar home you loved last year? Pick it up for $699k this year) or move to the water, where we have seen a 30% to 40% decline in values. If you are realistic about buying and selling into the same market.....you may lose on one end but gain much more potential equity growth on the other. IF you wait it out.
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