My last blog post was focused on buying real estate in 2013. It would only be natural for me to address selling on the next post. I would strongly suggest, whether you are a Buyer or a Seller, that everyone read both articles to see where our market is this year. I believe Buyers can learn from my seller suggestions and I believe Sellers can learn from the buyer’s suggestions. In any event, here are my suggestions for Sellers in 2013 (and most likely 2014 and 2015!).
IT IS YOUR MARKET, ACT LIKE IT! For a variety of reasons it is now a Seller’s Market! In all markets that I work in (and one could argue that covers a great amount of area) inventories are low and Buyers are desperate for properties. I currently have over 8 active Buyers that cannot find product. My daughters team in Las Vegas reports that they typically receive over 20 offers on listings within days of the property becoming active. All of us are waiting on the “shadow inventory” of bank owned homes to hit the market but, to date, nothing has happened. My guess is that nothing will happen. Banks are more and more open to the short sale process and avoiding foreclosure. Now I’m not suggesting you go crazy. But I am suggesting you can push the boundary a bit harder than you could in the past several years. We Realtors like to use the average price per square foot as a comparison for homes. We typically use the mean average which means that approximately half of all properties sold for less than the number and half sold for more. I am using Yucca Valley, CA as my example just because it is a smaller market and more easy to produce the numbers. Last December, 2012, the average price of a home sold in Yucca Valley, CA was $61 per square foot. What I am suggesting is that a Seller with a well maintained home in a nice area of town could push their price to $110 to $120 per square foot. There are a great deal of variables but one thing we know in the Yucca market at this writing, there are only 210 homes active on the market in the 92284 zip code. Of the 210, the average price is $167,317, the average square footage of a home for sale is 1,766, and the average lot size is just over an acre. So the average price of a home for sale in the 92284 zip code is currently $94.75! In Henderson Nevada the numbers really get crazy. There are currently 691 homes available (this includes townhomes, single family, and condos). The average list price is $573,322 or $150 per square foot! My point is that if you want/need to sell, now is the time to get it on the market and test the water. CALL ME!!!
THIS MAY BE THE LAST YEAR TO SHORT SELL YOUR HOME. Our brilliant leaders in Congress passed an extension to the 2007 Debt Relief Act through this year. That means you have this year to sell your home short and not have a tax liability for the forgiven debt. If you have considered selling short for any reason, DON’T WAIT! It typically takes a week to get a home on the market. Forms, signs, lockboxes, and data entry can take a few days at least. Once an offer is received it will take the Lender at least six to eight weeks to get the sale approved. It then takes another four to six weeks to close an escrow. AND THESE ARE BEST CASE TIME FRAMES MOST SHORT SALES TAKE CLOSE TO SIX MONTHS TO CLOSE. So you can see that waiting could push you close to a year end close and if you miss the date, you could be liable for the tax debt. I strongly suggest you use a professional Negotiator to negotiate your short sale. The average short sale has only a 30% chance of completing in both Nevada and California. Most Negotiators are over a 90% success rate. I use a very qualified negotiator in both Nevada and California. We will complete the sale with little brain drain on you, the Seller. Call me for more information. BUT DON’T WAIT!!!
IT’S TIME FOR SELLERS TO START THINKING OUTSIDE THE BOX TO MAXIMIZE THEIR INVESTMENT. Hundreds of potential Buyers have been locked out of the market because of lender restraints. Borrowing money today is more difficult than most Sellers realize. I know I am showing my age here but…back in the Carter days of the late 70’s it was not uncommon for a seller to carry back paper on a home secured by a second trust deed. We also used All Inclusive Deed of Trust or Wrap Around financing where the Buyer gave the Seller a large down and continued to pay the Sellers mortgage for a set amount of time. With historically low interest rates on many mortgages out there, you can see how this could appeal to both a Buyer and a Seller. As you consider selling your home take time to think about how you would like a deal structured. You may be able to construct a deal that allows you to continue to make money on the home by collecting interest income at well above market rates. Most Owner carry second notes will get 8% to 12% on interest income. Much better than banks are offering for saving accounts. Since this type of sale has been all but forgotten, call me and let me answer your questions so you can see if it is right for you!
For over seven years we have been tumbling out of control in our real estate market. I can’t forecast how quickly we will see pre 2006 values but I have great confidence that the market has bottomed out and is poised for a return. Call or email me to discuss questions or the possible sale of your home. I would enjoy the opportunity to work for you!