Facing a foreclosure is not a pleasant experience no matter how many years you have invested in the property. However, the longer that you have resided at the property, the more you have at risk when faced with the inevitable disaster you face after a foreclosure.
The Aftereffects of a Foreclosure
Not only do you lose all of the equity that you have accrued in your home when it is foreclosed, but also, you lose your place to live. In some cases, you also lose your friends and neighbors as you are forced to move away and relocate to new horizons.
Instead of broadening your horizons with the move, you narrow it to a point that becomes increasingly uncomfortable. Instead of worrying about being able to meet the mortgage payment, you now become entrenched in the fear that you cannot provide a reasonable standard of living for your family.
You’ve been reduced to begging relatives to allow you to move in temporarily. Now, you have to drive even further to get to work and your income is stretched even further. No one wants to loan money to someone who has a foreclosure on their credit report. Your credit score is so low that it is almost off the chart.
How will you be able to obtain the money that you need to provide your family with a place to live- perhaps a more affordable home on a smaller scale? You and your credit have both been branded by that most onerous of words, “foreclosure.”
On top of that, no credit card company wants to allow a homeowner with a foreclosure attached to his name to obtain a new credit card account or continue using an existing credit card account.
Instead of thinking about buying the daily newspaper, you are scouring the newspaper that you picked up in the company lunchroom as you devour your brown bag lunch. How could it all be reduced to this? How could rising interest rates and mortgage payments reduce you to a level where you cannot even afford to go out and purchase your morning cup of coffee? How could this happen to you?
Moving on and Putting Your Life Back Together after a Foreclosure
It doesn’t matter how it happened. What matters is that you pull yourself up out of your self pity and fins a path bask to easy living and carefree thoughts. Even if you have lost your home, your self respect, and your comfort zone, you can still move forward in an attempt to regain your financial footing.
Look to debt consolidating in an effort to reduce your remaining bills to the smallest, possible amount of debt. Consolidating your debts to a reasonable monthly payment will free up what little cash you have in your name.
Alternatively, you can reduce your debt on your own with a few simple strategies. First of all, you can reduce your level of spending, limiting it to necessities such as fuel, groceries, medicines, and dental expenses. Next, you can reduce the number of credit cards that you have.
Begin to pay off the credit card with the smallest balance remaining on it. Once it is paid off, you can close out the account. This strategy will limit your ability to overspend. Plus, it saves your money by reducing the overall monthly payment to bills since you have reduced the number of accounts that you are paying interest charges on.
In addition to saving money, these strategies can help to improve your credit score. After all, your credit score has taken a negative turn due to the foreclosure proceedings. Responsible spending and timely payments can help to restore your credit score more quickly than continuing to make poor financial decisions.
Look for alternate methods to save money. Start to purchase generic brands at the supermarket and drugstore. Buy second-hand clothing and sports equipment. Look for a part-time job. After all, now that you don’t have to mow the lawn that used to go with the possession of a home, you have lots of spare time on your hands.
Looking for a Place to Call Home after a Foreclosure
Additionally, displaced homeowners should look for an inexpensive place to call home while trying to get back on their feet. If you have been lucky enough to stay with friends or family since the foreclosure first occurred, arrange to pay some type of rent to repay the favor and extend your welcome for a bit.
Find out how long you will be permitted to stay and start to look for an alternative before that time arrives. Set up a series of visits with family and friends if necessary, keeping each visit short so that you don’t overstay your welcome.
Once you believe that you are ready to take the plunge again and buy a home, take the time to discover if this belief is valid or not. Check your credit score and find out exactly how low it is. If it’s still below 600 and it very well could be, reconsider your decision to purchase a home. Individuals with poor credit scores typically receive the worst interest rates and terms thereby increasing their risk of a foreclosure.
Next, start to save up enough money so that you have a reasonable down payment to place on the home. Realistically, 20% of the purchase price is a good target to aim for a down payment. It eliminates the need to obtain PMI or private mortgage insurance. In the second place, it reduces the size of your mortgage payment. The larger the amount of money that you can put down on a home purchase, the smaller the amount of interest that you will have to pay on the loan. The smaller the amount of money that you borrow, the smaller the amount of the monthly mortgage payment will be.
Finally, you should shop around for your next home carefully. Select a home that is within your ideal price range. Be realistic and settle for a home that is smaller and therefore, less costly. After all, isn’t it better to live in a home that is a bit smaller than you r original dream home than to foreclose on a home that is larger than life and more than someone in your financial situation should take a chance on?
By Susan Keenan
Tuesday, July 14, 2009
Tuesday, May 19, 2009
Home Search Trips
Even if you have a picture of your “dream home” in mind, the house hunting process can be overwhelming. Keep in mind that it will take time to find just the right house for you and your family, but there are some fundamental tips that should help you along the way.
- Take pictures inside and outside the house
- Bring your spouse, a family member or friend
- Make sure the house fits your budget
- Ask about utility and maintenance costs
- Consider commuting time and costs
- Compare what you would like to have versus what you really need
- Consider your monthly budget and if you can afford the renovations and maintenance you will need to do
- Do not make a spur-of-the-moment decision
Other tips to make the house hunting process easier:
List your needs: Know the difference between what you want and what you need and keep track of the homes that come closest to meeting your needs.
Concentrate on a few neighborhoods: Decide what is most important to you about a neighborhood and search houses around those areas. This will greatly narrow your search.
Find a real estate agent: They have more listings than you can find on your own.
Compare homes: Be sure to know what you would get and what you would miss in each house before you make a decision.
MLSonline.com can help make the house hunting process much easier by providing valuable information about neighborhoods, matching you with a real estate agent and other important features including refinancing and pre-approval. Get started today!
- Take pictures inside and outside the house
- Bring your spouse, a family member or friend
- Make sure the house fits your budget
- Ask about utility and maintenance costs
- Consider commuting time and costs
- Compare what you would like to have versus what you really need
- Consider your monthly budget and if you can afford the renovations and maintenance you will need to do
- Do not make a spur-of-the-moment decision
Other tips to make the house hunting process easier:
List your needs: Know the difference between what you want and what you need and keep track of the homes that come closest to meeting your needs.
Concentrate on a few neighborhoods: Decide what is most important to you about a neighborhood and search houses around those areas. This will greatly narrow your search.
Find a real estate agent: They have more listings than you can find on your own.
Compare homes: Be sure to know what you would get and what you would miss in each house before you make a decision.
MLSonline.com can help make the house hunting process much easier by providing valuable information about neighborhoods, matching you with a real estate agent and other important features including refinancing and pre-approval. Get started today!
A Real Estate Agent Can Add Money to Your Sale
A Real Estate Professional Can Increase the Money in your Pocket!
When you’re thinking about selling your house, and you want to get the most money for it, don’t automatically assume that selling it yourself is the best way to do that. It’s true that you will cut out the fee that is paid to any third party Realtor, but this isn’t necessarily to your advantage and the reason for this is that usually a good real estate professional will be able to get more for your home than you could selling it yourself!
Having decided to at least consider allowing a Realtor to list your home, don’t just sign up with the first one you ring, or the one with the most billboards/ads in the newspaper. Their ability to market themselves doesn’t necessarily mean that they are good at selling homes, just that they’re good at convincing people to list with them. Speak to several real estate pros and really find out if they are as good as they claim to be.
Ask the Realtors you meet with very specific questions such as how many homes they’ve had listed with them in the last 6 months, how many of those homes sold, and of direct relevance to putting more money in your pocket by using a real estate professional instead of selling your home yourself, how many of the homes they sold went for the listing price. The last question is the one that will separate the good real estate professionals from the rest, because a good Realtor will only allow you to list your home for what they know it will sell for, they won’t list it for more because they know they’ll have to come back and ask you to lower the price later. You need to know an honest answer to what your home is worth because that’s how much you can really expect to get for it, so once the Realtor gives you a figure on what your home is worth ask them if that’s what homes similar to yours are selling for in the current market. Choose the real estate professional who can show that they’re experienced and skilled enough to give direct answers to your questions and is someone you feel you can trust to sell your home.
Selling a home is a big decision and in a buyer’s market, it’s more important than ever to choose the right strategy to get the most from your property. There’s nothing wrong with selling your home yourself, but chat to a few real estate professionals first and see if they can convince you by their track record that they are worthy of your listing. What have you got to lose?
When you’re thinking about selling your house, and you want to get the most money for it, don’t automatically assume that selling it yourself is the best way to do that. It’s true that you will cut out the fee that is paid to any third party Realtor, but this isn’t necessarily to your advantage and the reason for this is that usually a good real estate professional will be able to get more for your home than you could selling it yourself!
Having decided to at least consider allowing a Realtor to list your home, don’t just sign up with the first one you ring, or the one with the most billboards/ads in the newspaper. Their ability to market themselves doesn’t necessarily mean that they are good at selling homes, just that they’re good at convincing people to list with them. Speak to several real estate pros and really find out if they are as good as they claim to be.
Ask the Realtors you meet with very specific questions such as how many homes they’ve had listed with them in the last 6 months, how many of those homes sold, and of direct relevance to putting more money in your pocket by using a real estate professional instead of selling your home yourself, how many of the homes they sold went for the listing price. The last question is the one that will separate the good real estate professionals from the rest, because a good Realtor will only allow you to list your home for what they know it will sell for, they won’t list it for more because they know they’ll have to come back and ask you to lower the price later. You need to know an honest answer to what your home is worth because that’s how much you can really expect to get for it, so once the Realtor gives you a figure on what your home is worth ask them if that’s what homes similar to yours are selling for in the current market. Choose the real estate professional who can show that they’re experienced and skilled enough to give direct answers to your questions and is someone you feel you can trust to sell your home.
Selling a home is a big decision and in a buyer’s market, it’s more important than ever to choose the right strategy to get the most from your property. There’s nothing wrong with selling your home yourself, but chat to a few real estate professionals first and see if they can convince you by their track record that they are worthy of your listing. What have you got to lose?
Short Sale To Avoid Foreclosure
The names change, but the problem remains the same. Some people call it the housing crisis while others have named it the mortgage crisis. Recession is mentioned as a possible result of the problem while confident money experts recommend patience until the dust settles.
Whatever it is called, there seems to be a vicious cycle spiraling down to disaster. Homeowners have given up, and some foreclosed homes are on the market at prices that would have been a great bargain five years ago. Individuals in dire straits cannot sell their homes and face foreclosure if they cannot unload the property in a market filled with homes that have been placed on the market by lenders that want to unload them. Unfortunately, other homeowners who might buy these bargains cannot sell their homes because it is suddenly difficult to get a mortgage. Homeowners also have trouble selling their homes unless they agree to bargain basement prices. Other homeowners find themselves living in homes that are not worth the mortgage that secures them.
Help is available for those caught in parts of the vicious cycle, and a short sale is a possibility for some homeowners looking to avoid disaster. Lenders are a diverse group so anyone looking for hardship assistance should immediately contact their lender to ask for help. A short sale might be a good option for the lender and the homeowner. The lenders have already foreclosed on many properties. Most of these companies do not want more foreclosures, and they do not really want to deal with selling the property.
In general, the basic process for a short sale works like this. The Lender agrees to accept the fair market value of the property rather than the amount owed on the loan as a settlement. The homeowner sells the property at the agreed price. The homeowner provides the proceeds to the lender as the settlement. The credit rating of the homeowner will not be affected by the short sale.
A short sale deal usually takes about sixty days from start to finish depending on the local market. The appraisal process often takes about two weeks to determine and agree on the fair market value. The approval of this amount by all the parties involved takes approximately two to five days. Closing escrow usually takes from two to four weeks and the deal is done.
The homeowner should avoid a negative impact on their credit rating by the short sale, but there may be tax implications. All homeowners should discuss the entire process and agreement with a Tax Professional before initiating short sale negotiations.
Whatever it is called, there seems to be a vicious cycle spiraling down to disaster. Homeowners have given up, and some foreclosed homes are on the market at prices that would have been a great bargain five years ago. Individuals in dire straits cannot sell their homes and face foreclosure if they cannot unload the property in a market filled with homes that have been placed on the market by lenders that want to unload them. Unfortunately, other homeowners who might buy these bargains cannot sell their homes because it is suddenly difficult to get a mortgage. Homeowners also have trouble selling their homes unless they agree to bargain basement prices. Other homeowners find themselves living in homes that are not worth the mortgage that secures them.
Help is available for those caught in parts of the vicious cycle, and a short sale is a possibility for some homeowners looking to avoid disaster. Lenders are a diverse group so anyone looking for hardship assistance should immediately contact their lender to ask for help. A short sale might be a good option for the lender and the homeowner. The lenders have already foreclosed on many properties. Most of these companies do not want more foreclosures, and they do not really want to deal with selling the property.
In general, the basic process for a short sale works like this. The Lender agrees to accept the fair market value of the property rather than the amount owed on the loan as a settlement. The homeowner sells the property at the agreed price. The homeowner provides the proceeds to the lender as the settlement. The credit rating of the homeowner will not be affected by the short sale.
A short sale deal usually takes about sixty days from start to finish depending on the local market. The appraisal process often takes about two weeks to determine and agree on the fair market value. The approval of this amount by all the parties involved takes approximately two to five days. Closing escrow usually takes from two to four weeks and the deal is done.
The homeowner should avoid a negative impact on their credit rating by the short sale, but there may be tax implications. All homeowners should discuss the entire process and agreement with a Tax Professional before initiating short sale negotiations.
Saturday, May 9, 2009
Ways to Stop Foreclosure
Ways to Stop Foreclosure
Foreclosure is the process by which a creditor regains possession of a property when the borrower has stopped making payments on the loan. This situation can arise for many legitimate reasons, including loss of job or income, medical situations or a death in the family. Foreclosure should be considered a last resort by both parties, as it involves time and money for legal proceedings, hurts the borrower's credit, and often results in loss of money by the lender. There are several options available to stop foreclosure. They should all be seriously evaluated as a possible way out of a bad situation.
The first thing to consider is a Loan Modification plan. This is very popular and is suited for people who can make current mortgage payments, but cannot pay for past-due payments. For instance, if a medical emergency resulted in a homeowner being out of work for several months and unable to make mortgage payments, a Loan Modification plan will stop foreclosure by folding past-due payments into the principal owed. Payments are continued normally from that point forward. The new principal balance is reamortized over a new term, but this is usually well worth it for the homeowner to stop foreclosure.
Forbearance is another good option and it buys the mortgagor time by slowing down the process of the foreclosure. Essentially, the homeowner promises to take certain steps in exchange for the creditor temporarily ceasing legal action. This step may include making home repairs or improvements, or listing the property for sale with an accredited Realtor.
Often the option to refinance the home is one to consider in an effort to stop foreclosure. There are many different types of loans available to consumers today and the field is very competitive. For example, an interest-only loan could make sense depending on market conditions. The advantage of an interest-only loan is that monthly payments are significantly lower than with more traditional loans. The disadvantage is that nothing is being paid toward principal, so in a soft or downward-trending market where home values are decreasing, there is considerable risk of losing money in the long run. Any serious effort at attempting to stop foreclosure should include thoroughly evaluating refinance options with a loan specialist.
Sometimes it is possible to stop foreclosure with a short sale. This involves selling the home on the market for less than what is owed to the lender. The mortgagor or representing lawyer then negotiates with the lender to settle for less than they are owed instead of proceeding with foreclosure. Sometimes this makes sense to the lender if the loss from the short sale is less than what they stand to lose from legal proceedings and fees associated with foreclosure. If possible, work directly with the lender's supervisor who is responsible for handling short sales.
Ample documentation will be required for a short sale. Exactly what will need to be provided will vary from lender to lender. In general, one can expect to prove loss of job or income in writing as well as a hardship letter describing the homeowner's current financial or medical situation. Other common forms of documentation include an estimated net sheet showing the expected sales price of the home, copies of bank statements and market comparisons of other homes sold in the area.
Finally, it may be possible to arrange a Deed in Lieu transaction. This is where the borrower hands over the property to the lender instead of paying off the debt. This of course results in the homeowner being out of a home, but if this is an option, it is often far more desirable than foreclosure. This is particularly true if there is not much equity built up in the home. One advantage for the mortgagor is that his credit history will not blemished with a foreclosure mark, which will certainly make future borrowing more difficult. Another advantage is that the homeowner gets to merely walk away from the debt situation and avoid the hassles and stigma of foreclosure.
Deed in Lieu is only possible if both parties, in good faith, agree to the arrangement. A lender may opt for this if the value of the property is close to, or exceeds the amount of the debt owed. Once the deed in lieu is accomplished, the home can be sold on the market by the lender, who then keeps all the money resulting from the sale in order to recover the debt. Even if the lender only breaks even, or comes out slightly behind, this is often a big savings over the cost of the legal proceedings of foreclosure.
Foreclosure can be a complicated and costly process for both the borrower and the lender, and can have some very negative consequences. It is often in the best interest of both parties to stop foreclosure by proceeding with one of several better options. Whether this action involves loan modification, forbearance, refinancing, a short sale, or a deed in lieu, totally depends on the circumstances of the situation. The value of the home, amount of equity, amount of the loan and living situation of the homeowner all play a role in evaluating which option is best.
Foreclosure is the process by which a creditor regains possession of a property when the borrower has stopped making payments on the loan. This situation can arise for many legitimate reasons, including loss of job or income, medical situations or a death in the family. Foreclosure should be considered a last resort by both parties, as it involves time and money for legal proceedings, hurts the borrower's credit, and often results in loss of money by the lender. There are several options available to stop foreclosure. They should all be seriously evaluated as a possible way out of a bad situation.
The first thing to consider is a Loan Modification plan. This is very popular and is suited for people who can make current mortgage payments, but cannot pay for past-due payments. For instance, if a medical emergency resulted in a homeowner being out of work for several months and unable to make mortgage payments, a Loan Modification plan will stop foreclosure by folding past-due payments into the principal owed. Payments are continued normally from that point forward. The new principal balance is reamortized over a new term, but this is usually well worth it for the homeowner to stop foreclosure.
Forbearance is another good option and it buys the mortgagor time by slowing down the process of the foreclosure. Essentially, the homeowner promises to take certain steps in exchange for the creditor temporarily ceasing legal action. This step may include making home repairs or improvements, or listing the property for sale with an accredited Realtor.
Often the option to refinance the home is one to consider in an effort to stop foreclosure. There are many different types of loans available to consumers today and the field is very competitive. For example, an interest-only loan could make sense depending on market conditions. The advantage of an interest-only loan is that monthly payments are significantly lower than with more traditional loans. The disadvantage is that nothing is being paid toward principal, so in a soft or downward-trending market where home values are decreasing, there is considerable risk of losing money in the long run. Any serious effort at attempting to stop foreclosure should include thoroughly evaluating refinance options with a loan specialist.
Sometimes it is possible to stop foreclosure with a short sale. This involves selling the home on the market for less than what is owed to the lender. The mortgagor or representing lawyer then negotiates with the lender to settle for less than they are owed instead of proceeding with foreclosure. Sometimes this makes sense to the lender if the loss from the short sale is less than what they stand to lose from legal proceedings and fees associated with foreclosure. If possible, work directly with the lender's supervisor who is responsible for handling short sales.
Ample documentation will be required for a short sale. Exactly what will need to be provided will vary from lender to lender. In general, one can expect to prove loss of job or income in writing as well as a hardship letter describing the homeowner's current financial or medical situation. Other common forms of documentation include an estimated net sheet showing the expected sales price of the home, copies of bank statements and market comparisons of other homes sold in the area.
Finally, it may be possible to arrange a Deed in Lieu transaction. This is where the borrower hands over the property to the lender instead of paying off the debt. This of course results in the homeowner being out of a home, but if this is an option, it is often far more desirable than foreclosure. This is particularly true if there is not much equity built up in the home. One advantage for the mortgagor is that his credit history will not blemished with a foreclosure mark, which will certainly make future borrowing more difficult. Another advantage is that the homeowner gets to merely walk away from the debt situation and avoid the hassles and stigma of foreclosure.
Deed in Lieu is only possible if both parties, in good faith, agree to the arrangement. A lender may opt for this if the value of the property is close to, or exceeds the amount of the debt owed. Once the deed in lieu is accomplished, the home can be sold on the market by the lender, who then keeps all the money resulting from the sale in order to recover the debt. Even if the lender only breaks even, or comes out slightly behind, this is often a big savings over the cost of the legal proceedings of foreclosure.
Foreclosure can be a complicated and costly process for both the borrower and the lender, and can have some very negative consequences. It is often in the best interest of both parties to stop foreclosure by proceeding with one of several better options. Whether this action involves loan modification, forbearance, refinancing, a short sale, or a deed in lieu, totally depends on the circumstances of the situation. The value of the home, amount of equity, amount of the loan and living situation of the homeowner all play a role in evaluating which option is best.
Why Is My House Still on the Market
Why Is My House Still on the Market
Some houses sell as quickly as they are placed on the market. Others sit there languishing for months becoming not only harder to sell, but also, becoming harder to show. After all, the longer a house sits on the market, the harder it is to get rid of it. Houses pick up reputations like it or not.
Not only do the neighbors begin to realize that your home has been on the market for quite a while, but certainly so do the real estate agents. Even some of the potential home buyers might realize that your property has been for sale for quite some time now. Surely, something must be wrong with it. What is it about your home that is keeping it from being sold?
The Overpriced House
A house that is overpriced is not going to sell as quickly as other properties simply because a quick comparison of prices will show that it is overpriced. Real estate agents won’t even want to show it after a while, leaning toward properties that are more likely to sell. After all, they want to earn a living and trying to unload a property that is simply marked up too high is next to impossible.
A good real estate agent will insist that you lower the price before putting it on the market. You should listen to him if you want to sell your home in the near future. Take note of the pricing strategies of luxury homes during slumps in the market. Those properties are marked down not by hundreds of dollars or even thousands of dollars, but they are marked down by millions of dollars.
If you price your home reasonably when you first put it up for sale, you are more likely to sell it quickly than if you wait. Once a home is visibly marked down with a “price reduced” label, every potential buyer is instantly aware that your house has been on the market for a while. They are going to know that you are not a person who is up to any more compromises. After all, you priced your home much higher than the market would bear.
The Dump or Poorly Maintained House
A house that is a real dump is not going to sell because it is a dump. The word “dump” can be used to describe a house that has a wide range of problems from dirty, in need of repairs, and unkempt to falling apart at the seams. Homeowners who do not take care of their houses while they are living in it risk the possibility of not being able to unload it when they want to do so.
A dump typically has more wrong with it though than a few “sadly in need of paint” walls and carpets that look like the entire world came tramping through after a walk through a swamp. A dump has structural problems that are real eyesores and that a few cosmetic strategies are not going to solve.
What good is a coat of paint on the front porch when the floor slats are clearly rotting out on the perimeters? What good is a new bush or two on the side of the house when clearly every tree in the back yard is dying from some type of disease? What good is allowing the buyers to keep the washer and dryer when the home is clearly infested with mice, cockroaches, and other vermin? And what good are a few dirty, but pretty, curtains when every window refuses to open and the screens are all missing?
Plus, a dump is simply one of those homes that you know you do not want to enter even when your real estate agent insists. It is one of those homes that clearly smells like animal urine as you approach it from the sidewalk. It not only has a fine coat of dust covering the window ledges or fireplace mantle, but it also has a fine layer of grime covering the walls, ceiling, and steps to the basement. It simply doesn’t matter how much potential it has. Would you want to live there?
However, if the homeowners clean it up, then it is no longer a dump and it might eventually sell. Then again, a dump in your eyes might not be the same as a dump in someone else’s eyes. After all, it is all a matter of perspective. Nonetheless, a house that was once a dump is always a dump in the eyes of the people who have already seen it, including the real estate agents.
Who Did You Say Is Selling Your House?
If you pick the wrong person to sell your home for you, you could be in even bigger trouble than you think. After all, if your brother-in-law is a real estate agent and you list your home with him, he is going to be sharing a bit more than the specs in the paperwork. Let’s face it, people like to share what they know without even realizing they are doing it. It is simply human nature to talk to those around us.
Before you know it, a conversation about the new roof leads to the fact that the house had some structural inconsistencies leading to the roof’s collapse. Gosh, would you want to live in a house like that? What else could be wrong with it? Or perhaps he will share the fact that the neighbors are real party hounds during the summer and your kids cannot get any sleep before 10 pm when the law reinforces the “peace and quiet” guidelines of the area.
How much harder is it to sell a home when every tiny negative aspect is laid out on the table for the potential buyers? Yes, the homeowners do have the responsibility to disclose certain things, but do they really have to tell the potential owners that the teenager down the block revs his car at 7 am in the morning every day or the neighbor’s cat likes to spray in your garden?
A real estate agent who knows these things is going to share these things without even realizing that he is doing it. It is simply normal conversation to share when someone else shares. In fact, he might even think he is being helpful to point out certain things. Let’s face it though, some things are better left unsaid.
Some houses sell as quickly as they are placed on the market. Others sit there languishing for months becoming not only harder to sell, but also, becoming harder to show. After all, the longer a house sits on the market, the harder it is to get rid of it. Houses pick up reputations like it or not.
Not only do the neighbors begin to realize that your home has been on the market for quite a while, but certainly so do the real estate agents. Even some of the potential home buyers might realize that your property has been for sale for quite some time now. Surely, something must be wrong with it. What is it about your home that is keeping it from being sold?
The Overpriced House
A house that is overpriced is not going to sell as quickly as other properties simply because a quick comparison of prices will show that it is overpriced. Real estate agents won’t even want to show it after a while, leaning toward properties that are more likely to sell. After all, they want to earn a living and trying to unload a property that is simply marked up too high is next to impossible.
A good real estate agent will insist that you lower the price before putting it on the market. You should listen to him if you want to sell your home in the near future. Take note of the pricing strategies of luxury homes during slumps in the market. Those properties are marked down not by hundreds of dollars or even thousands of dollars, but they are marked down by millions of dollars.
If you price your home reasonably when you first put it up for sale, you are more likely to sell it quickly than if you wait. Once a home is visibly marked down with a “price reduced” label, every potential buyer is instantly aware that your house has been on the market for a while. They are going to know that you are not a person who is up to any more compromises. After all, you priced your home much higher than the market would bear.
The Dump or Poorly Maintained House
A house that is a real dump is not going to sell because it is a dump. The word “dump” can be used to describe a house that has a wide range of problems from dirty, in need of repairs, and unkempt to falling apart at the seams. Homeowners who do not take care of their houses while they are living in it risk the possibility of not being able to unload it when they want to do so.
A dump typically has more wrong with it though than a few “sadly in need of paint” walls and carpets that look like the entire world came tramping through after a walk through a swamp. A dump has structural problems that are real eyesores and that a few cosmetic strategies are not going to solve.
What good is a coat of paint on the front porch when the floor slats are clearly rotting out on the perimeters? What good is a new bush or two on the side of the house when clearly every tree in the back yard is dying from some type of disease? What good is allowing the buyers to keep the washer and dryer when the home is clearly infested with mice, cockroaches, and other vermin? And what good are a few dirty, but pretty, curtains when every window refuses to open and the screens are all missing?
Plus, a dump is simply one of those homes that you know you do not want to enter even when your real estate agent insists. It is one of those homes that clearly smells like animal urine as you approach it from the sidewalk. It not only has a fine coat of dust covering the window ledges or fireplace mantle, but it also has a fine layer of grime covering the walls, ceiling, and steps to the basement. It simply doesn’t matter how much potential it has. Would you want to live there?
However, if the homeowners clean it up, then it is no longer a dump and it might eventually sell. Then again, a dump in your eyes might not be the same as a dump in someone else’s eyes. After all, it is all a matter of perspective. Nonetheless, a house that was once a dump is always a dump in the eyes of the people who have already seen it, including the real estate agents.
Who Did You Say Is Selling Your House?
If you pick the wrong person to sell your home for you, you could be in even bigger trouble than you think. After all, if your brother-in-law is a real estate agent and you list your home with him, he is going to be sharing a bit more than the specs in the paperwork. Let’s face it, people like to share what they know without even realizing they are doing it. It is simply human nature to talk to those around us.
Before you know it, a conversation about the new roof leads to the fact that the house had some structural inconsistencies leading to the roof’s collapse. Gosh, would you want to live in a house like that? What else could be wrong with it? Or perhaps he will share the fact that the neighbors are real party hounds during the summer and your kids cannot get any sleep before 10 pm when the law reinforces the “peace and quiet” guidelines of the area.
How much harder is it to sell a home when every tiny negative aspect is laid out on the table for the potential buyers? Yes, the homeowners do have the responsibility to disclose certain things, but do they really have to tell the potential owners that the teenager down the block revs his car at 7 am in the morning every day or the neighbor’s cat likes to spray in your garden?
A real estate agent who knows these things is going to share these things without even realizing that he is doing it. It is simply normal conversation to share when someone else shares. In fact, he might even think he is being helpful to point out certain things. Let’s face it though, some things are better left unsaid.
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