We Keep Hearing It – The Biggest Mistake Homesellers Make

Despite almost two years in a declining housing market and forecasts for it to continue, many home sellers are beginning conversations with – "I need to get $$$$$$ out of this sale."

This is the biggest mistake home sellers continue to make. The market is the market. Neither the home seller, nor the real estate agent can dictate to the market what the house value is. Sellers stuck on this phrase usually lose money – more money in a declining market than a homeseller that begins with – "What is the current value of my home and how can we get it sold quickly?"

It usually takes 90 to 120 days for the market to educate the "I need" homesellers. Many continue to resist and as the Borg taught us – resistance is futile. 

According to PMI Mortgage Insurance Co. of Walnut Creek, CA, U.S. home prices, already down 23 percent from their July 2006 peak, will continue to fall until the third quarter of next year. Ninety-seven percent of the 381 U.S. metropolitan areas surveyed are likely to have lower home prices in September 2010.

Some economists say reductions will be in the 20% to 30% range. Others are looking more at 15%. Housing markets in the East Bay are going to be all over the place. Currently, some are holding stead, some are appreciating, most are still settling. The the big drop has occurred, no one has heard the bounce yet.

With interest rates at historic lows and buyers becoming more and more active, the home sellers, or Realtors, that know how to price according to market dynamics are going to realize the best profits.

It's always best to deal with the reality of the market than trying to force the market to deal with our personal situation – no matter how compelling we feel our case is.

We are starting to see a new wave of short sales enter the market as home owners who have been able to mange the worst of the market downturn are beginning to feel the squeeze of the worsening economy and mounting unemployment.

Home owners facing possible a short sale or foreclosure are encouraged to get proactive now. This is the #1 positive action a home owner can take.

We have completed successful short sales for many clients. Contact Ginny for more information 925-699-3328

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