I hate to play financial adviser but ponder this thought:
If your banker told you that for the next 6-12 months that instead of giving you interest on your money, the bank would instead be pulling about 1-2% of your money out of the bank EVERY Month! What would you do?
If your home was a bank, it would tell you to immediately withdraw your hard-earned money! As the market continues to settle, many homeowners that did not purchase a home in the last four years and did not refinance their loans are truly in the driver’s seat! But, the only way to capitalize on homeowners’ good fortune is to sell while the equity is higher than it will be in the coming months.
We all watch and read the news! All the research points to the market continuing its adjustment phase. I strongly believe that our market will level in the next year or so and become like the market of early 1990’s. During the 1990’s, the real estate market did not appreciate at a rapid pace like it did five years ago.
Back then, homeowners would see a comfortable 1-2% appreciation per year. But before we get to that day, the market is still coming down!
Today, may potential sellers do not completely understand that for every day or month that their homes remain on the market, their equity is decreasing at a pretty steady pace. Throw in a recent short sale or foreclosure sale in your neighborhood and the numbers will be even worse!
The moral of the story is that sellers should be pricing their homes right at, or just under, market value right now! Most buyers would rather buy homes that are NOT foreclosures or short sales and will actually pay very top market dollar to not have to go through the long process of a distressed sale!
I am not psychic or hold a crystal ball in my hand during our listing appointments, but the facts are right in front of each and every one of us. I always keep in contact with our clients after their the closing dates. After 6 months or so, I tell the clients what their homes would be worth if the property was still on the market. 99% of the time the homes are worth less than the day of closing!
For a free comparative market analysis from an honest, local real estate team, please give us a call at 954-609-0591.
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If you are interested in buying or selling real estate in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.