Real Estate Information

In today's market it's all about PRICE.  I've been saying that for a while now, But I still receive calls from buyers asking me about the great deal they saw.  You know the one...a home that should be listed for sale for 250,000 but its listed for 80,000.  Enter the Short Sale...

A short sale price (99% of the time) is a "false" price.  Meaning that the seller/Realtor is just trying to get an offer they can take to the bank.  The bank still has to approve the offer.  So let's say...in the above example, you make an offer of 70,000...the bank responds (after about 8 weeks) with a counter offer of 135,000.  You say, "wait a minute, I thought you were asking 80,000 for the home???  Now, you want 135,000?"

What you've done is given the seller a base price of 135,000 they know the bank will accept.  Now the seller can list the home for 135,000.  Don't get me wrong, 135,000 for a home that should be 250,000 is a great deal...but it's not the 80,000 deal you thought you were going to get.  Does that make sense?

Don't be afraid of Short sales...just be careful.  Ask if the listing price has been accepted by the bank yet.  If it hasn't, expect a "higher than asking price counter" if you make an offer. 

Call or email me with questions regarding this topic and as always I welcome your comments. 

I heard an interesting stat the other day from a Real Estate Veteran of over 40 years...This guy has seen it all, now nothing like our current market but he's been through the worst before.  He said to me "Do you know that as a country we need to be building 2,000,000 homes a year to keep up with population, divorce and college grads...etc?  Right now we are only building 1,000,000 homes a year.  We will have a housing shortage...it might be 5-10 years down the road, but we will see it and a shortage will drive prices right back up.  I thought this was very interesting...if that's the case and I believe it to be true, then this "bail-out/rescue" plan will work and the government will be able to sell the homes they buy for a profit.  More importantly any home YOU buy in todays market is a great investment...I don't know, I'm just a home seller in Michigan...but I remain positive in a negative market. 

I welcome your comments... 

Today's market has changed...all markets go through what's called "correction".  We are in that market.  The home prices are correcting themselves.  As a seller you need to understand this.  In the past or in a normal market it was all about location, location, location.  In today's market it's all about Price, Price, Price.  To sell a home in a correcting market you need to price it right, get it sold and take advantage of the buying end.  You will take a "hit" on the sale of your home, but you will more than make up for it on the buying end.  Listen, if you don't have to sell today...DON'T.  But, if you're going to sell, why not SELL.  I ask my sellers on the first appointment...Do you want to TRY to sell, or do you want to sell?  There is a huge difference. 

Sellers:  You have to do what it takes to get your home sold in this market in order to take advantage of the buyer's market.  If you wait to reduce your price and sell your home, you are also waiting for the new home to go up in price...

On the Buying end...it's simple.  WHAT ARE YOU WAITING FOR???  This is it, we are in a depressed market...go FIND the deal, it's out there.  But, you need to be ready to act on that great deal.  I've dealt with many buyers who are waiting, waiting, waiting for the perfect deal to come along...when I present the deal to them, they don't act on it or they think a better deal is around the corner.  When they decide to act on the deal they find out it has been sold already to someone that isn't afraid to act.  I see GREAT deals everyday, everywhere, but they are beginning to fade...

For more information on GREAT deals in the market today, contact me...what are you waiting for?

Short sales have become a HUGE part of the real estate business, here in Michigan and all across the country.  I have received many calls and emails from sellers asking me if they can sell their home on a short sale.

The question is a tough one to answer...not everyone is able to sell on a short sale.  You first must show the bank or lender that you have "hardship".  Meaning you can't make your payments on time.   If there is no "hardship" in most cases, your bank won't except a short offer.

Another thing to keep in mind is the time it takes to A: sell and B: close.  If you are buying a short sale, the process can take 6-8 weeks or longer just to get an answer and you still might not get the house.  If you are selling on a short sale, once you receive an offer you will wait the same 6-8 weeks just to hear if they accept or reject the offer.

If you can get a short sale price up front before you actually have an offer on the table you are ahead of the game...this can be very difficult.  Many agents that are marketing short sales will keep reducing the price down until they get an offer they can present to the bank.  So buyers...always ask if the short sale price has been accepted by the bank before you fall in love with that home...if not, the odds are slim you will get the house at that price if at all! 

For more information on short sales please feel free to email me tim@timcourtney.com or call me at 734-354-8440.  Short sales do work and could work for you.  Give me a call and lets talk about your situation.