Who's Selling?

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With all of the homes on the market, you might be wondering, 'Who's Selling?' For individuals and families, the reasons for selling in this 'buyer's market' are varied as always. Changed family or job situations continue to lead the reasons for selling a home, and these can be strong motivators for the seller. People and families continue to cite marriage, births, deaths, and divorce as reasons for selling, although the personal business of sellers does not often make it to advertising in a property, and properly so. Children leaving may leave empty-nesters with too much house to handle, and why clean and maintain a big family house for only a couple or even one? Then there are marriages and larger blended families to consolidate, and one or two of the smaller homes to sell and then move the family to a larger home. Over time people's economic situations generally get better, and buying a larger or nicer home involves selling the smaller, not-so-nice one. Move-down sellers plan a more modest move, when divorce, smaller family size, or economic pressure says 'sell the big house and move to a smaller one'. Making the move can significantly relieve financial pressure, and spouses and children often thrive when the pressure of making a too-big mortgage payment is relieved. Sellers who are seniors aged 50 or older may have special needs for selling. The family may have dispersed and begun families of their own, or maybe the big two story house with all of the maintenance just isn't good anymore. Seniors retire and may move away, or move on to an assisted living situation, or may want something as simple as not walking up and down stairs anymore. Increasingly, this is a significant part of the market. Seniors can move their tax basis to the new purchase in many cases, so why live in a big old empty house when there may be something more suitable for a changed lifestyle and needs? Relocation and job changes continue to be a factor in home selling, whatever the market. And then maybe you just do not want to make that daily commute to Orange County anymore, and so it is time to sell. Flippers and short-term investors are selling. Big time. They are on the wrong side of the curve and the smartest ones know it. Housing markets take big broad swings, and when the market turns it generally takes a few years to work itself out. There are flippers and some investors who are hanging onto their properties, but with falling prices and lots of inventory to work through the system, with a surge of new inventory expected to come on as adjustable and option arm mortgages adjust, if your investment strategy is in years, go ahead and hang on. If not, it is time to sell. Distressed sellers who are upside-down, owing more than their homes are worth, and with home prices falling, may do well to sell now unless they plan on being in their homes for some years. As long as they can make the payments, great. If not, acting sooner and not later will probably be best. We have an experienced team who can guide you through these short-sale situations. If you really want to hold onto your home, give us a call. We have affiliated with a rock-solid loan modification company and we can guide you through the process. For those distressed sellers who wait too long, eventually NODs and Trustee Sales may be in their future. Then it is out on the street. Yikes. Don't wait that long! Bank owned properties, or REOs, are really the leaders of the market right now. Banks don't like to have property inventory on the books, and when they have to take property back they want to sell it for the best price in a reasonable amount of time. As a buyer of real estate, don't give into the reverse of these past years' seller's mania. Banks aren't giving these properties away. After all, it is a business. But let's face it, the foreclosure pricing has led the market down. Most sellers understand that although they may not be able to get the same price as they could a few years ago, when they then turn around and buy a replacement home, that price has generally not going to cost as much either. It can be a good time for you to sell depending on your individual circumstances, and if you are buying a replacement property that better suits your needs, it may be a terrific time for you to sell. Call us at 661-290-3750.