What will 2008 hold for the Foreclosure Market. As the new year approaches, I am constantly thinking of what 2008 holds for many homeowners trying to sell their property. I am constantly taking phone calls from nervous sellers that think the Auction Method may be the ONLY viable way to sell their home. The reality is, after looking closely at the numbers, very few would even qualify for a successful "Traditional" Auction Sale. The auction method can meet several needs for the seller however is not meant for every property.
So...what is the alternative? If your property is listed with an aggressive Real Estate Agent...it's "Patience and Exposure". I tell sellers to be patient in this market. Your "Days on Market" have increased. Be aggressive with your price to reflect your market and condition. Price it according to condtion! I can't stress that enough. The next is "Exposure". Where is your property being advertised? Do you have a Visual Tour with statistics? (not just a glorified slide show). Can you find it easily on the internet knowing 4 out of 5 buyers start their home search on the internet? Many will eventually find a home starting with the internet. There is a lot of inventory for buyers to choose from. Get your property out there for the world to see! On a side note, buyers are looking for the best deals and certainly don't want to make a huge purchase in a downward market. Make your property attractive with incentives, i.e. closing cost assistance, etc.
Since October 2006, housing prices have taken an average 6% reduction. This is difficult for many sellers to swallow. In the world of Real Estate this is coined as tragic for home owners. In any other market however (Retail, Stock Market), it simply becomes a "Buying Opportunity". In my market covering Maryland, Baltimore, Harford and Cecil County, I believe Buyers will be and ARE coming out of the woodwork! I have instructed my team to be patient with the "tire kickers". They WILL be buyers soon.
What does 2008 hold for the Real Estate Market?
The short answer is it may be a difficult year for sellers who have not planned early enough to market their homes. Too many homeowners have taken on mortgages that are not realistic for them to re-pay. The last minute decisions to sell a home hoping for the magical contract to come in before being foreclosured on is not realistic. In most cases this will not happen. I am noticing Deed of Trusts that are less than 2 years old heading for foreclosure. Most are not "Sub-Prime" loans or so-called "shady" adjustable rate mortgages.
Out of the 7 auctions I conducted today, December 28, 2007, only 1 was an adjustable rate mortgage. Not all Foreclosed Property owners were "victims" of the sub-prime market! Most simply victimized themselves by chasing the Dream of owning a home they could not afford. The great thing I love about being a human on this earth is....we are allowed to make mistakes. Some costs are greater than others.
In early January 2008, there are 190+ Foreclosure Auctions I am scheduled to conduct over a 3 day period. This will cover only 4 counties in Maryland. Lenders will be over-run with properties which means a buying opportunity for investors and others. The difficult times for a few are still ahead. If you find yourself falling behind on payments, PLAN AHEAD! Talk to your Lender. If things cannot be worked out and you have enough time. Talk to your REALTOR® or local Real Estate Auctioneer. If you live in Maryland. There is only one phone call you need to make. We are here to help.
Have a Great New Year!
Robert B. McArtor, REALTOR and Noted Real Estate Auctioneer
Long and Foster Real Estate, Inc.
1-877-421-SOLD
http://www.MarylandsHomeTeam.com/
http://www.harfordadvantage.com/