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It’s Not About Jobs If You Need To Sell Now

A message from Steve Harney:

The short term fixes used to bolster the real estate market (the purchase of mortgage-backed-securities and homebuyer tax credits) proved to be just that: short term fixes. Everyone now seems to feel that the only true solutions to the challenges in housing are

  • the creation of jobs and
  • the increase in consumer confidence jobs will create.

I totally concur. However, if tomorrow the administration was to announce the greatest jobs program ever attempted and promised to implement that program immediately, it would take 12-18 months for it to have any noticeable impact on housing demand. That begs the question:

What if you want (or need) to sell in the next 6 months?

A new jobs program cannot help you. A dramatic increase in consumer confidence won’t occur in time. The only way for you to guarantee your home will sell and you and your family will get to move on with your lives is to price your home at a number at which it will sell. We know that is difficult to accept.

Back in 2006, you might have been able to sell it for perhaps 20-30% more than you can sell it for today. In five-to-ten years from now, you may be able to sell it for substantially more. This is not 2006 however. This is not some undetermined time in the future when the housing market has fully recovered. This is 2010 and this year we must list our property at a compelling price if we want it sold.

This may seem like too strong a dose of ‘tough love’. I just want to make sure that if you truly want/need to sell your home in the near future you realize that the best time is now. You may be losing money compared to the 2006 price. But, by waiting, you only continue to lose value.

Every major credible source is saying that prices will fall in most parts of the country over the next six months. Estimates range anywhere from 5-20%. If you own a $200,000 home and prices drop an additional 10%, you will lose $384.62 every week!!

($200,000 x 10% = $20,000. If you divide the $20,000 by 52 weeks it equals $384.62).  

Bottom Line

Sit with your family and a local real estate professional. Determine the actual value of your home. Price it at that number, sell it and move on to where you and your family really want to be.

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