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Replies (18)
Hello mrimdieke,
My personal opinion is such: Banks are so backed up in their foreclosure departments that we are expecting another waive of foreclosures to hit. Not all foreclosures have been accounted for, and it is only another matter of time until the next waive hits us which ultimately means (lower values, and sales prices plummet) If you are considering to sell, I believe now is a good time, during the calm before the next storm!
Good luck!
My personal opinion is such: Banks are so backed up in their foreclosure departments that we are expecting another waive of foreclosures to hit. Not all foreclosures have been accounted for, and it is only another matter of time until the next waive hits us which ultimately means (lower values, and sales prices plummet) If you are considering to sell, I believe now is a good time, during the calm before the next storm!
Good luck!
- Joni McClintock, "Joni McClintock"
- Contributions:115
I reccomend you contact 2-3 agents in your area and get their imput. There are many variables in selling a house. The location, condition and of course the price. How much you owe on the house is a huge factor right now. I would suggest you meet face to face with a realtor and get their professional ideas about your house and your options. Another factor is how long you have lived in the house. It is pretty tough in my area to come out ahead or even if you have lived in the house less than 5 years. Try to speak one on one with an agent that is referred to you by a friend or family member. That works well.
- SoCal_Engr
- Contributions:5666
The real answer lies in the answer to two questions...
1. What is your long range financial plan, especially with respect to home ownership (i.e., where, what, etc.)?
2. How does this home fit into that plan? What was your plan when you bought the house, and how has it changed? What is the impact to your long range plans if you sell now, or hold and rent?
For example, if your long range plan was to move back to the Leavenworth area, then hold-and-rent might make more sense. However, if Leavenworth is definitely a temporary location, then you might be more disposed to minimize any losses and move on.
The bottom line...There is no pat answer. It all depends on your particular situation and goals.
1. What is your long range financial plan, especially with respect to home ownership (i.e., where, what, etc.)?
2. How does this home fit into that plan? What was your plan when you bought the house, and how has it changed? What is the impact to your long range plans if you sell now, or hold and rent?
For example, if your long range plan was to move back to the Leavenworth area, then hold-and-rent might make more sense. However, if Leavenworth is definitely a temporary location, then you might be more disposed to minimize any losses and move on.
The bottom line...There is no pat answer. It all depends on your particular situation and goals.
- Jay Keiser, "Keiserj"
- Contributions:3
There are no black and white answers to your question. Here are a couple of thoughts. I suggest that you reflect on your decision to buy your house. Has that turned out to be a good decision? Where would you be happier, on base on in your house? Since your future is so unknown, I suggest you consider what will make you the happiest for the next 2 years. If you are re-assigned and your house is worth less than your purchase price, there is a program for military personnel that makes up the loss. Good luck with you decision! Jay
- Denny Giza, "dennygiza"
- Contributions:162
That's a tough one! I'd have to agree with the others. I am leaning more to selling now because of the coming foreclosure glut. Meridith Whitney suggest the housing market will be in a double dip situation here shortly. Perhaps you can see her remarks on the CNBC we site. Hope that helps.
- Simon Mills, "Mills Realty"
- Contributions:1858
I think Nick is right on with his comments. The lenders, not wanting to send the market into a tail spin, have been slow to foreclose. There is a back-up that will need to make it's way through the system and that could literally takes years to do. Timing the market is almost impossible, so you really need to concentrate on the information that you have at hand and then make a decision that is right for you and your family.
Thank you for everything that you do for our great country.
Simon Mills
Mills Realty
Thank you for everything that you do for our great country.
Simon Mills
Mills Realty
- Rick Chumsae, "Rick Chumsae"
- Contributions:283
Grab a cup of coffee because this may put you to sleep.
Months Of Inventory (MOI)
MOI is a calculation that can tell you if you are selling (or buying) into a balanced market, a mildly over or under supplied market, or a greatly over or under supplied market. At or near balance point home values ride the inflation curve. Over supply tends to drive values down. Under supply tends to drive values up. The generally recognized market balance point is 6.5 MOI.
Your state's real estate commission proably funds a research group which, among manay other things, calculates MOI for your city on a monthly basis. There you can see the trend for your city and the most current city-wide average MOI.
A Realtor can do the calculation for your city as well. Ask the Realtor to look on the MLS and tell you how many active listings show up, and ask the Realtor how many have sold in the last 182 days, then apply this:
ACTIVES / SOLDS = N / 2 = M X 12 = MOI
Next, ask the Realtor to look at ACTIVES and SOLDS specifically in your neighborhood. Ask the agent to search within a price range suitable to your house, possibly include a certain middle, elementary or high school,
possibly include your subdivision name, then search. You will need a total of about 25 to 50 combined ACTIVES and SOLDS to be statistically significant. Then apply the formula.
Now you have the city-wide MOI and another for your specific property type. From this you have more on which to base a decision. If, for example the city MOI is 10 and your house MOI is 3, then you are selling into a seller's market even though the city average is opposite. If your house MOI is high and going higher, then now may be a peak price for the sale of your house.
Try it.
Months Of Inventory (MOI)
MOI is a calculation that can tell you if you are selling (or buying) into a balanced market, a mildly over or under supplied market, or a greatly over or under supplied market. At or near balance point home values ride the inflation curve. Over supply tends to drive values down. Under supply tends to drive values up. The generally recognized market balance point is 6.5 MOI.
Your state's real estate commission proably funds a research group which, among manay other things, calculates MOI for your city on a monthly basis. There you can see the trend for your city and the most current city-wide average MOI.
A Realtor can do the calculation for your city as well. Ask the Realtor to look on the MLS and tell you how many active listings show up, and ask the Realtor how many have sold in the last 182 days, then apply this:
ACTIVES / SOLDS = N / 2 = M X 12 = MOI
Next, ask the Realtor to look at ACTIVES and SOLDS specifically in your neighborhood. Ask the agent to search within a price range suitable to your house, possibly include a certain middle, elementary or high school,
possibly include your subdivision name, then search. You will need a total of about 25 to 50 combined ACTIVES and SOLDS to be statistically significant. Then apply the formula.
Now you have the city-wide MOI and another for your specific property type. From this you have more on which to base a decision. If, for example the city MOI is 10 and your house MOI is 3, then you are selling into a seller's market even though the city average is opposite. If your house MOI is high and going higher, then now may be a peak price for the sale of your house.
Try it.
- Pasadenan
- Contributions:21466
The other advantage of selling now in addition to all that have been mentioned is the prices are still inflated by the expired tax incentive. Though some buyers may expect something off for that, it is not as much off as it will be if you wait a few months (unless of course congress steps in to prop up the market again in September or October).
If you have a high number of months inventory in your area, or average days on market substantially exceeding 1/2 year, you will want to make sure you set the price low, as otherwise you will be chasing the market down. From those that posted that experience in 2007 and 2008 on this website; that was not a fun experience for them.
If you have a high number of months inventory in your area, or average days on market substantially exceeding 1/2 year, you will want to make sure you set the price low, as otherwise you will be chasing the market down. From those that posted that experience in 2007 and 2008 on this website; that was not a fun experience for them.
- Stephanie McCarty, "snellvilleagent"
- Contributions:521
Market timing has never worked. I agree with other agents responding that we are going to see foreclosures for some time. If you need to move or have good reason to move, do so now. If not, don't make a decision based on trying to stay ahead of the market, just do what works best for your family. Good market or bad market, same advise.
- Linda Strasberg, "L Strasberg"
- Contributions:2315
do you have equity?
It is not a question that can be answered with the information you have provided. Without the location there is no way one could give you a good answer. The old cliche in the business is Location, Location, Location.
Some parts of Los Angeles are seeing prices increase 14% while others are decrease 29% and continue to do so.
So the question is, where do you live and what is the market trend in that exact location.
Regards,
Saurabh
www.sethihomes.com
310.689-9904
setihomes@gmail.com
Some parts of Los Angeles are seeing prices increase 14% while others are decrease 29% and continue to do so.
So the question is, where do you live and what is the market trend in that exact location.
Regards,
Saurabh
www.sethihomes.com
310.689-9904
setihomes@gmail.com
- Sam Lind, "Sam Lind"
- Contributions:251
As others here have said, this is a tough question. I'm somewhat familiar with the Leavenworth market and know that it's been tough for a while. My guess would be that it won't improve substantially any time soon. It also may not get any worse. For me the tipping point in this discussion would be the current ultra-low interest rates. Buyers can get a great deal right now and the govt is still willing to back most decent borrowers through FHA loans. In other words, this is the best market for buyers that we may ever see. So, I would try to sell now while those buyers are still able to borrow cheap and buy. If rates are higher next year, fewer buyers will be able to buy. Good luck!
- Gannet
- Contributions:76
Sell now, and get on with your life. There is nothing foreseeable in the next 2 years that would cause prices to go up, and a number of things that would cause them to go down. The only possible exception would be another Congressional prop-up, but that probably won't be all that much, and almost certainly not enough to cover your carrying costs.
- Cindy Ferguson, "Cindy Ferguson"
- Contributions:3
Hello,
I am an Associate Broker for Reece and Nichols Premier Realty in Leavenworth Kansas. I have read several of the replies and there were some very good suggestions given to you. I would like to add that yes the future according to lenders I have spoken with that say we are going to see more foreclosures and short sales. Yes this does affect the values, however Leavenworth usually does not get affected as much as other areas do to the military and prisons in our area. I also was selling in the late 80's when interest rates were 14% that was tuff. One thing you did not mention was how long you have owned the property. My suggestion is you contact a realtor, "which I would be more than happy to speak to you of course" and have them do a market evaluation to see what your options are first. I alway say that real estate is your best investment on your money and still do believe that. If you can afford to rent it out that is great as the renter now is building the equity for you ie:savings, however the draw back is if you do not have someone whom you can rely on to manage the property while you are gone you can suffer as well. I have seen many homes lose value because the managment company did not keep the owner posted as to what maintanence issues, especially exterior issues, go unattended and then the home owner suffers. I could go on and on but I must go. Please feel free to contact me. Have a blessed day.
I am an Associate Broker for Reece and Nichols Premier Realty in Leavenworth Kansas. I have read several of the replies and there were some very good suggestions given to you. I would like to add that yes the future according to lenders I have spoken with that say we are going to see more foreclosures and short sales. Yes this does affect the values, however Leavenworth usually does not get affected as much as other areas do to the military and prisons in our area. I also was selling in the late 80's when interest rates were 14% that was tuff. One thing you did not mention was how long you have owned the property. My suggestion is you contact a realtor, "which I would be more than happy to speak to you of course" and have them do a market evaluation to see what your options are first. I alway say that real estate is your best investment on your money and still do believe that. If you can afford to rent it out that is great as the renter now is building the equity for you ie:savings, however the draw back is if you do not have someone whom you can rely on to manage the property while you are gone you can suffer as well. I have seen many homes lose value because the managment company did not keep the owner posted as to what maintanence issues, especially exterior issues, go unattended and then the home owner suffers. I could go on and on but I must go. Please feel free to contact me. Have a blessed day.
- David & Maria-Nella Landman, "PrimeOne Realty"
- Contributions:101
Wait unitl 2012 or later if you can, lenders are on a foreclosure frenzy and there will be more and more houses ( bank owned ) that need to be sold, so prices are falling.
- Cindy Ferguson, "Cindy Ferguson"
- Contributions:3
The problem about waiting is like you just said more foreclosures so prices are going to continue to decline. How much is the question and then how long to recoop the value that you loose waiting that 2 years. We don't know. Some would say wait and see and others say they don't want to risk it and get out now if they are moving out of state.
- David & Maria-Nella Landman, "PrimeOne Realty"
- Contributions:101
You need to see your personal situation as well, try to get it sold listing the property will not hurt you, you can always accept or not an offer, price your property close to your break even point ( what you owe plus closing costs) and see what happens. Innaction is the worst thing that can be done!..
- John Squier, "John Squier"
- Contributions:229
I agree with NicktheBanker. Consult the advice of a couple agents, but my opinion based on what you shared is that you may want to sell sooner than later. If you end up buying another property you may end up coming out ahead after you consider your buying power and interest rate.
Need advice on whether to sell in 2010 or wait to 2012! :)
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