There are a lot of homes for sale right now. Suffice it to say, if you are trying to sell yours, you need to keep in mind what you're competing with!
Case in point: 1150 Sheehand Blvd in Port Charlotte, Florida. In 2004, this home listed on the MLS for $325,000. In 2005, it sold for $299,000. Today, it is listed on the MLS for $139,900. That is almost a 50% drop in price from 2004. And if you are thinking that it's because the home located at 1150 Sheehand Blvd is shabby or run down, think again. The home has over 2500 square feet of living space, a 3-car garage, fireplace and even a pool!
Why is the price so low? Simply put, the owners stopped making payments on it and the bank took it over. The bank is willing to take a loss on it to free themselves from having to spend manpower and money on its upkeep. Foreclosure homes, like this one, have taken over the MLS like a cancer.
It's certainly something to keep in mind if you are trying to sell your home, or are thinking of doing so in the near future. There is no way to sell your home at a price that is at or above market value while there are still so many foreclosure homes on the market. What can you do about it? Well, if you absolutely must sell your home, you will have to take a loss on it. In order to get your home sold, it needs to be listed below market value. If you can wait until the market gets better, that would be ideal. It would benefit you as a homeowner to not take such a financial blow to sell your home.
Assuming you can afford it, the best senario is for you to take your home off the market and just wait to sell it, and also buy the home that you have been eyeing. The reason that this is the best thing you can do is two-fold:
1. You will be buying a home at an astronomically great value, and if you wait until the market comes back to sell your old home, you won't be losing money on it either. That means double the money in your pocket.
2. If your home is not on the market, that is at least one fewer homes saturating the market. As we all know, prices are based on supply and demand. Currently, the supply of homes for sale is greater than the demand so by taking your home off the market, you are doing your part to decrease the supply, thereby helping in a small way to improve market conditions. By buying the new home, you are decreasing the supply that much more and also helping a bank get rid of a foreclosure or helping a family sell their home.
If you must sell your home as soon as possible, you will need an agent to help you determine what the market value is for your home. To choose the best agent to help your price your home, you should ensure that they are VERY familiar with the area and its current market, familiar with real estate in general and on a local level and extensively experienced in foreclosures and real estate owned properties. The reason for this is that agents who specialize in dealing with foreclosure properties are the ones that advise the banks of what price to list these properties at, which is why they are selling so quickly.
If you are a buyer who is trying to acquire one of these foreclosure properties, it is very important to remember that the price the bank has put on it is fairly firm. The bank has taken an honest look at the property itself and what they are owed, as well as what they have put out and will need to put out for maintenance and upkeep. The figure that they have come up with is almost always a rock-bottom price that they know will attract attention and cause the home to sell very quickly. If you are serious about buying a foreclosure property, you should offer them NO LESS than the amount they are asking for. Very often, it turns into a bidding war and you should be prepared to make your highest and best offer almost immediately.
If you have questions about foreclosure or real estate owned (REO) properties, be sure to contact Roxanne and Shannon Moore at RE/MAX Anchor Realty. We're experts on the topic as we've worked with numerous banks and closed plenty of foreclosure properties in our careers and we would love to help you buy or sell a foreclosure home!
Call Roxanne & Shannon Moore at 941-626-3926 or 941-276-8142!