REAL ESTATE
by Jim Coleman, REALTOR®
SELLERS ARE CAUTIONED ABOUT SELLING IN THIS MARKET
As the market adjusts and the various interests in the related real estate industries take drastic measures to adapt and survive, many sellers find themselves in a very difficult position. There is a large number of home owners in adjustable rate mortgage loans on homes where values have declined who cannot sell to get out from under the heavy payment without taking a huge loss because of equity that has evaporated.
Owners who need to relocate are really caught in a pinch. Owners who like their home, neighborhood and community and only want to sell because they can't get out from under the big payment by refinancing are caught in the squeeze. Perhaps some reminders or words of caution will be useful.
1. Carefully evaluate the impact of a low offer; cutting ones loss may be the best thing. If you can survive and get to where you want to be by taking the low offer and can see your way to rebuild or re-position yourself, then take the offer and run. Who knows when or if another offer may come in this market.
2. Calculate the time frame in which you feel the current home will meet your needs. We have been so used to selling and making a change just because it would be nice, that prudence has often been shelved while pride prevailed. Maybe you are better off staying put while the storm blows over.
3. Be careful with the terms and conditions offered when the buyer knows the seller is desperate. Keep an open review with your advisors to know if the offer will help or harm.
4. Remember the impact of curb appeal if a sale is really desired. The better the appearance and the condition of the property, the more attention it will receive and hopefully the more showing activity and offer action you will receive.
5. Remember how and why you got where you are in this ownership; it may well be that the current home and the current loan are still the better options for you given the conditions of the present market.
It certainly is very difficult to know the current economic conditions and forecast the future. But as painful as the current loan and financial impact may be, it is vital to counsel with competent professionals, evaluate potential possibilities, and be prepared to take action when presented with a proposal that comes close, although not ideal, for it may be the best solution available for your current situation.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.