Short Sales, Not Just Summer Wear Bargains

Short Sales

Short sales. Now there’s a phrase that has been removed from the everyday real estate vocabulary for a decade, but is coming back like the Santa Ana winds. Should you look for them? Should you avoid them when buying? Should you be trying to work one out if you’re in a pinch on your own mortgage payments?

A short sale is when a bank accepts a purchase price under the outstanding loan value instead foreclosing on a delinquent property. Short sales have slipped back in to our jargon with so many home owners having extended themselves to the edge of their affordability, interest rates making upward moves and the buzz around sub-prime loan worries.

As a buyer, short sales can be a good sign. If the lender has already accepted that they are going to take a loss and would prefer to sell rather than go the foreclosure auction route, they can be more open to working with interested buyers. It can also add some hassle and delay, as the purchase will need to be run through the bank’s process. Often listing agents will note in the write up of a new listing that it will be a short sale, so keep an eye out for that.

As a seller, if you find yourself over your head and are trying to work with your lender, short sales can be a good solution. Avoiding a full foreclosure is always great news. The tough part is that the lender will have to sign off on the sales price and they do not always do that. I have heard of many banks and lenders turning down short sale offers, only to have the foreclosure auction price come in even lower.

Carol Lloyd at SFGate wrote a great article about the topic of short sales recently. What have you heard about them?

  • David Wilson

    Great article. Good information.

  • ArnoldLayne

    As always, a good read. Thanks Glenn.
    Anecdotally, 5 houses down it looks like folks are moving out, and it is shown as a June 11 foreclosure on Redfin.
    We bought an REO June 2009, spent a lot remodeling, and a recent appraisal was exactly equal to what we paid. eh.

    • http://blog.redfin.com/ GlennKelman

      Arnold, sorry to hear that you have to put so much into an REO just to keep up with falling prices… did you use Redfin to buy it by any chance?

      • ArnoldLayne

        No, you guys aren’t active in Morgan Hill.
        But your website is the best…

  • jim

    This description has to take some kind of ‘best’ award… bravo Glenn!

    “Before that, buyers kept the party going, snorting up liar loans in the
    bathroom then macking on the first house they saw, driving prices up.
    Now, the market looks more like a middle-school dance, with buyers and
    sellers waiting one another out on either side of a large, dusty gym.
    It’s always hard to say when the hormones will kick in; maybe in three
    months, maybe in three years.

    • http://blog.redfin.com/ GlennKelman

      Thanks Jim! Written in a rush, as always…

    • http://www.aaronfyke.com Aaron Fyke

      Agreed!  I couldn’t help cracking up here at work.  Ah, real-estate based economics humor is always the best…

  • Joe

    Due to relocation, I am both a buyer and a seller.  Well, I’m a seller – just went into contract – but it’s mighty hard to be a buyer right now.  On our housebuying trip, we toured a who’s-who list of undesirable housing.  Dated.  Damaged.  Deferred maintenance.  Poor location.  Overpriced.  As we’ve shopped from afar, we sometimes see a decent property that’s not priced like it’s 2006 – they sell before we can book a flight.  Our own house, totally updated and in great condition – had 1 serious nibble plus 2 full-price offers in the first week.  Yes, we priced it for 2011 (more than the fixer REOs are going for, but 45% below what non-remodeled houses sold for at the peak), and we freshened it up (paint, made sure there were no repair issues, decluttered, and, of course, cleaned like our sale depended on it) even though we “lost” 45% in paper equity.  We just hope karma rewards us with a rationally priced home (with roof, carpet, and appliances less than 20 years old) on our next househunting trip.  It’s tough to get excited about an all-origianl 50s-70s house with a slew of repairs required, and I just don’t have the cojones to buy one of the decent homes priced nearly 2x current values.  Who wants to go underwater – TODAY – on a house that you couldn’t rent for the property tax, let alone carrying costs?  We’d rather rent or buy elsewhere than settle for an overpriced fixer.  I think you’ve been spot-on before – it’s not that there aren’t buyers, its that most of the inventory is junk (condition or price).  Good houses sell quickly if they’re priced for today’s market.

    • http://blog.redfin.com/ GlennKelman

      Most of the inventory out there is damaged goods…

    • Guy

      I agree with your points about buying, Joe.  Very few houses are truly ready to be lived in, and most sellers seem to think that the buyers have excess funds to throw around after providing full 20% down and closing costs that banks are requiring.  Keep looking at homes about 20% above your expected closing price, and use your readiness to purchase to advantage; eventually, one of those home owners will be willing to come down to reality.

    • AnniZilz

      You must be shopping in the East Side Seattle, Mercer Island, Bellevue. WA. Sorry for that…seeing multiple offers here.

    • Redfin buyer from Chicago

      Joe,

      I can relate because I am in the same boat as you and noticed the same thing.  I moved cities a year ago and accordingly sold my condo.  It had been completely updated in the past 5 years and was in great shape; inspection came back clean.  However I took slightly more than a 20% hit vs what I paid at the height in 2005.  It was painful, but my feeling was that I would net out even by finding another home that had faced the same situation.

      Wrong.  Like you said,  I’m finding a lot of stale inventory.  Many of the “new” things that are coming on the market are really properties the owners have been trying to sell over the past few years.  I think the only people who are selling right now are the people who have to.  The other frustration is the properties that are well upkept and in move in condition know it and think they demand more than the property is worth.  It’s very funny to hear a seller’s agent try to convince me that I should take pity on a seller’s losses when everyone who bought at the height and is trying to sell is going through the same thing.  I’m in the middle of my second negotiation this year and despite making what is above a reasonable offer, I think this deal will fall through as well.  There’s also the reality that some sellers just don’t have the ability to take a fair offer of what the property is really worth in today’s market.

      Even though the news media tries to paint it as a buyers market I think the reality is that in this market, no one is satisfied.  Sellers are understandably frustrated at the potential hits they have to take and buyers are frustrated over the quality of inventory.  Those who speak of the ‘bargains’ are missing the point.  Unless I’m an investor, it’s not a bargain if I have to sink a lot of money to make it into what I need to be or if it’s a property I won’t be happy in.

  • Blaine

    As a prospective buyer, in the Phoenix area; can anyone tell me when the best time to start shopping is? We’ve heard summer, and fall, and spring. The worst time apparently is winter (when the snowbirds come down).

    • http://www.redfin.com Marcus Fleming

      Hi Blaine,

      If you are thinking in terms of inventory or the number of homes on the market I’d avoid starting your search in January and February where the inventory is the lowest. On the other hand that could be the best time to start looking as you can set yourself up with automatic emails as the new listings start hitting the market late January early February. 

      However, this isn’t a normal market and it doesn’t make any sense to base your home search behaviors around traditional wisdom or the migration patterns of our well loved snow birds. Right now we are seeing a huge shortage of homes for sale. Combine that with our short sales taking about 90 days to approve and you’ll realize the best time to start looking is today. Simply put, its going to take awhile to find a good home and/or get a short sale approval on it. 

      I’ve attached a graph with the number of sales per month in the phoenix valley from Jan 2009 to Dec 2010. The graph will show you the slowest months for home sales in Phoenix is typically January and February. With a spike in sales in June. In case you’re wondering we show a lot of homes in 119 degree weather, that doesn’t scare anyone away from seeing/buying homes. 

      If you have any questions about the Phoenix market feel free to shoot me an email! 

      Marcus Fleming | Redfin Phoenix Market Manager and Broker
      marcus.fleming@redfin.com | T: 480.414.9014

      • http://blog.redfin.com/ GlennKelman

        Thanks for diving in Marcus…

        • Celia

          Glenn,
          What’s your take on the Boston market – going up or down and when is a good time to list a family size house?  there are a decent amount of technology jobs here. I’m suprised I didn’t see stronger numbers because it sure feels like everyone is asking top dollar for their houses here…and getting it in many towns.

  • Elaine Ryckman

    Good information on the housing market.  Buyers will return when the jobs return and when the banks start lending.  That won’t happen until after the election in 2012.  Everything is on hold due to uncertainty about debt, deficits and taxes.

    • http://blog.redfin.com/ GlennKelman

      I hope not, because 100 days after that, everything will be on hold for midterm elections…

  • ItsUglyOnTheGround

    snorting up liar loans in the bathroom then macking on the first house they saw,

    Is this really the “voice” of Redfin?

    • http://blog.redfin.com/ GlennKelman

      Maybe not. It’s me Glenn who wrote this. I have moods, I make mistakes…

      • Isisnot

        I think you are darn funny, but also capture some of the underlying sentiment with the satire. You have a little edge but given what the pop-media feeds us, you are pretty PG. BTW, I like the service but ended up using zillow for my search, really only by chance.

        • http://blog.redfin.com/ GlennKelman

          Was there anything you liked about Zillow better?

          • Ironmike

            Zillow is erratic, particularly where there isn’t a real good base of comps to work with.  I live in a real mixed value rural area, they’re all over the place.  I like the column, this is real estate, not church.  ”snorting up liar loans in the bathroom then macking on the first house they saw” is an apt description.  

          • SarahVojn

            Redfin is my main squeeze, but I sneak over to visit Zillow occasionally. The main reason I go to Zillow is to see more price history. Not sure exactly how it works, but it seems that Redfin gets rid of price history if the listing goes off the market for a while (for contingency or whatever), so I have to go to Zillow to get the full picture.

            Another thing I would love to see (though I’ve not seen it on other sites either) is a more realistic “On Redfin” value. If the listing was removed and relisted the same day or if the listing went contingent and then back to active, the day count restarts. Maybe it’s a real estate rule or something similar that makes you list this way? I generally just calculate that value manually so I have an accurate picture of how long the house has really been on the market.

      • Jostrickley

        You’re doing a great job Glenn, so don’t be deflected by RE’s henchmen. That’s what makes Redfin stand out above all its peers.

      • Jim M-L

        Don’t apologize Glenn, that is the best, most accurate (if colorful) description I have seen to describe the situation back then. My wife and I are looking for our first house and have been for nearly a year.  5-7 years ago we looked for awhile thinking that we just might be able to swing buying a house. We were not doing great financially, but felt we would be able to get a mortgage and finally get a house of our own. ‘Join the party! Have a good time!’ Ultimately, after a realistic assessment we decided we just were not in a financial position to commit to a mortgage. Now, after looking for 11 months, and especially after we missed our chance at the juicy tax credit last year, we sometimes feel that we should’ve just joined the party in 2005. What the heck, there’s all sorts of breaks and assistance for those that made bad decisions back then, and while we most certainly would be among them, at least we would’ve had 5-6 years in a house instead of the dump we’re renting. And even if it is a little stressful, we could be living virtually rent fee and getting a return on our tax money (getting Gov’t assisted loan restructuring saving us from our poor decisions 5 years ago, along with other favorable assistance) and the banks and taxpayers would/will be eating most/all of our losses. We’d have had a great time at the party, everyone would’ve made their $$ on the mortgage deals and commissions (which hasn’t really been taken back) and all we all would have now is a queasy stomach and a headache. Others pay the piper.
        Not unlike losing out on $4k of Gov’t money and a shiny new car, just ‘cuz we were smart enough to buy a second hand clunker that got (according only to the EPA website ) 26 mpg in 2002.

  • La seller

    As a seller in LA, the buyers are demanding significant concessions on a 10% cap 4unit that’s FHA qualified.

    It seems the distance between the buyer and seller are grossly different. The first time buyers are aware they are a minority but lack the knowledge to asses value. The investors have been offering cash but at 30% below list.

    The inexperience is obvious in escrow, the buyers are disregarding escrow conditions causing very difficult situations for the agents.

    The article is accurate. It’s a standoff. Both parties are frustrated and not changing. It seems the sellers now on the market which are not REO are not desperate, and would rather wait another 9-12 mos for a buyer than forfeit $30k+ in equity than sell to a current buyer and be left the current markets offerings.

    I’d welcome feedback on the listing:11-529265 in LA

  • Lynnvilla

    After a monster June in our own business, Redfin’s July will be mediocre.

    It’s June and you are predicting July to be mediocre, people are depending on you for advice and what if everyone buys into your theory?. Will we have a mediocre month??? How about saying its a good time to buy and sell and it’s win/win for everybody and everybody believed that??? Too Utopian I guess.

    • http://blog.redfin.com/ GlennKelman

      If we tell the truth to customers the business will grow over the long haul…
      July revenues are already almost entirely set, since most deals take 45 days to close anyway.

    • ArnoldLayne

      If you want cheerleading, go to NAR.
      It’s not like you can coax along the RE market.
      I like Redfin and Glenn because there’s less BS!

    • scott

       ”it’s a good time to buy and sell”  LOL, we’ve heard that one before!!!  No RE Agent should be making such remarks if they want respect.

  • Jostrickley

    Glen, if I’m not mistaken there have been seasonal upticks even in the worst years since the bubble burst. What is interesting is your report of ‘low inventory and low sales’ as a factor contributing to an April rally. Which comes first here, low sales because of low inventory, or t’other way round? And the other question is whether the standoff is quite so prevalent as it was in say 2009 or 2010? Many sellers have been pricing realistically in 2011, and some buyers seem to have acquiesced this year. However, a common complaint is a lack of inventory, especially quality inventory in many places. I’m certain banks inability to process defaulting borrowers has something to do with supply, and tightened credit is stifling demand. Add economic uncertainty especially in the employment arena and it isn’t surprising large financial decisions are on the back burner.

    What would be great is some comparative graphs of sales, listings, fall throughs, price reductions (and size), list to sales ratios, median and case shiller price (on same graph), DOMs, NOTs and NODs.

    • http://blog.redfin.com/ GlennKelman

      Well I think that the standoff is worse because the banks aren’t providing as much liquidity, so buyers and sellers have to agree on their own, with few alternatives. 

      And I tend to think that the run-up last spring was because of the tax credit, which is long gone. 

  • Renting in Mass

    I’ll give you a tiny bit of credit for being sort of right ;)

    If the non-seasonally adjusted number is positive, but the seasonally adjusted number is negative, wouldn’t it be fair to say that all of the increase is seasonal?

    “How about saying its a good time to buy and sell and it’s win/win for everybody and everybody believed that???”

    Wow…

    • http://blog.redfin.com/ GlennKelman

      I am not it would be fair to say the increase is seasonal, because usually there’s a seasonal increase in sales volume but this year sales volume is down. I just think the lack of inventory is a atypical and definitely part of the story.

      • Jostrickley

        Both is probably true.

  • RJ from Oregon

    It would make more sense if Redfin agent (not partner agent) starts providing incentives for properties lower than 200k or commission lower than 3k similar to incentivies they provide for property more than 200k. That way buyer will get more encourage to use Redfin agent to buy an investment property.  The site is awesone though.

    • http://blog.redfin.com/ GlennKelman

      We’re trying to make our service across all prices. It will take time RJ…

  • eltoroverde

    First of all, I love Redfin and I find Glenn’s posts to be informative and entertaining.  How can they not be, with analogies like, “Before that, buyers kept the party going, snorting up liar loans in the
    bathroom then macking on the first house they saw, driving prices up.
    Now, the market looks more like a middle-school dance, with buyers and
    sellers waiting one another out on either side of a large, dusty gym.
    It’s always hard to say when the hormones will kick in; maybe in three
    months, maybe in three years.”  (Yes, I realize I just quoted a whole paragraph but it deserves it.)

    While home prices have stabilized for the time being, I think it’s going to be closer to 3 years (and possibly quite a bit longer) before sellers and buyers start coming back to the table en masse.  Most likely that won’t happen until any robust economic recovery begins to kick in.  The chances of that happening before or without a turnaround in the job market are limited, at best.  How long that might take is anyone’s guess but given where things currently stand, it could be awhile.  I think it’s possible, though not probable, that potential sellers in financial straits who decide they can’t wait any longer for the market to come back to 2005-6 levels– and out of desperation are willing to take whatever they can get– start putting properties up for sale.  If buyers don’t jump right in, and I don’t think we’ll see that happen until unemployment starts to go down, this could put downward pressure on prices until the market stabilizes at a new, lower level.  In other words, the party is definitely over and the chaperones at the middle-school dance could be in for a very long night.

    • http://blog.redfin.com/ GlennKelman

      I agree completely that employment is the main driver.

    • Jostrickley

      Of course this is absolutely correct, and making it more so, is helping people understand it.

  • Chris

    Glenn, your comments seem a little Gloomy.  Gloomy Glenn.  Look, like politics, I guess all real estate is local.  I live in the SF bay area, and I think that for any one that who was priced out of the market, or just too frustrated by it last decade, they realize this is a golden opportunity and they are jumping on houses that are priced right and in good condition.  And the fixers are being snapped up by investors.  I’m telling you Oakland and Berkeley, at certain price points are hot hot hot.  I think a lot of SFers are waking up to the fact that you can get a pretty sweet bungalow, craftsman, victorian or other period house in neighborhoods with great walk scores and access to public transit.  And it won’t cost you 7 figures.  Just be mindful of your surroundings and it’s OK.  It’s been a real wake up and surprise for me.

    • Anni Zilz

      I totally agree! I am watching the Orange County market also, and homes are selling there as well. Must be a west coast thing!

    • Jostrickley

      Glenn actually based his argument on inventory numbers, and sales. To demonstrate an opposing view, could you also flesh out your argument with same.

  • Anni Zilz

    Real estate is local, we need to remember that. What might be true in one area, may not be true in another. The Seattle market is seeing our traditional summer job exchange (I will not assume “growth” at this point), and while not as robust as in years past, it is still there. Where the jobs are, buyers will follow, sellers will sell, people will move on. Glenn your blog today was macro, and while I assume you are speaking to the country or world for that matter, please do not be presumptuous, and assume that all markets are alike. People listen to what you say, and when you put on the ”national hat” you do a disservice to the micro markets where business is being done, homes are being sold at fair prices, and buyers are finding new homes. We can get the national rhetoric anywhere, I expect you to have a more insightful view.

    That being said, I loved your analogy of the Bathroom. Well said.

    • Jostrickley

      I think (hope) most people know that, so I don’t think it fair to say a “disservice” is being offered. There is no way every micro market can be covered, which is why generalizations are used. If your market is doing OK. Good few and let us all know, but for many of us the picture is very different.

  • Jostrickley

    Here’s a very interesting analysis by Rich Toscano creator of the Piggington forum. In it, he takes apart the seasonality factor in Case Shiller and concludes:

    “Once the typical boosting effect of springtime is removed from
    the picture, the CS index actually measures San Diego home prices
    as being down in April by .1 percent.  Assuming the adjustment is
    accurate, that means that all of April’s price increase (and then
    some) was caused by the spring boost as opposed to any inherent
    strength in the market.”
    http://www.voiceofsandiego.org/toscano/article_7a509570-a2b9-11e0-acad-001cc4c03286.html

    • http://blog.redfin.com/ GlennKelman

      Yeah, but sales volume is down this season when it should be up, which means that seasonality hasn’t been such a strong factor. I’m not trying to be a bull, I just think that the untold part of the story is inventory…
      G

      • http://pulse.yahoo.com/_LMOV3TTTZU344AO4B26ZVXN6XA Matthew

        You’re probably right (we are potential buyers, have been looking for 7-8 months now, but the selection seems to be getting worse and worse. And, even as sale prices are still going down, list prices keep going up… wishful thinking? Summertime letters to Santa Claus??)

        BUT what makes you think the low inventory is the CAUSE of the market and not a symptom/result of it? You state foreclosures are dropping… sure, maybe new foreclosure notices are going down, but what about shadow inventory? If foreclosures have fueled price drops, and you’re stating that the past year saw the final surge/peak of foreclosure proceedings… then this means up to 1-2 more years of growing (not shrinking) foreclosure inventory, based on how long it takes for the foreclosure process to actually occur and the banks to take possession

  • happyhomeowener

    Today’s Dr. Housing Bubble posts the following info:

    “Source: US Census
    It is useful to lay out the entire housing data for the United States to get a better picture of where things stand. 24 million Americans own their home free and clear (this doesn’t clear them from paying annual taxes, maintenance, and insurance by the way). 51 million Americans own a home but with a mortgage. 37 million rent and another 15 million housing units sit vacant. The percentage of vacant homes is alarming. This is simply more inventory out in the market that needs to be absorbed. There is little demand for new housing when so much housing is already destined to come online.”

    I’m not seeing how 15 MILLION vacant homes = ”the supply of homes for sale has been falling”

    was it 16 MILLION last year?

    his full post here:http://www.doctorhousingbubble.com/booming-collapse-of-housing-why-housing-bad-investment-for-the-current-decade-5-charts-exploring-the-demographic-and-financial-perfect-storm-real-estate/

    • http://blog.redfin.com/ GlennKelman

      I don’t understand why more homes aren’t being listed, but the number of homes for sale is definitely falling.

    • AmandaJayne

      I hate to point out the obvious but just because it’s vacant doesn’t mean it’s listed for sale. 

  • Podlyesnyy

    I am in the buyer/seller camp. We just bough a new house and selling the old one. Everything in the same town in DC area. Speaking of localized markets the place where we bought the house is super hot. Houses when priced right are being sold withing few days after they go on the market even before first open house. And there always several offers so we had to go into a bidding war. Were were did win few houses and on the third attempt we got ours.

    Well with old house it is completely different story. Only 7 miles apart and its pretty quite. First few weeks there more visitors but once all buyers have visited the house it is now about few visitors a week.

    As contingency I considered renting it out. The simple calculation of (mortgage interest + principal) + property taxes + insurance + HOA + maintenance considering current rates actually makes it is pretty good savings considering the rent. The potential renter would spend on average several hundred dollars more. So you you plan to live in the same location for more then 5-10 years it makes a lot of sense to buy right now an lock into this good deal.

    But that is me seller talking ;)

    Could the prices go down? Well only if the rates go up. Otherwise owning the house will be a LOT more attractive. And it is pretty attractive now.

    So the question should be. What is gonna happen with the mortgage rates ?

    • http://blog.redfin.com/ GlennKelman

      I worry about rates constantly, but often feel like the only one…

      • Podlyesnyy

        My point is. They try to fight inflation by printing more money. All that “easing” they are talking about is built to keep deflation down and keep inflation up. This means rent goes up and it seems that rent has not gone down a bit. Even with all the trouble in RE market. For the last several years they have tried to fight deflation and they keep doing it even tough it is ALREADY quite attractive to buy now. As they keep fighting deflation by increasing inflation the rent is only gonna go up.

        If we take rent as base to which we should compare ownership right now it is already attractive to purchase.
        And according to CPI http://www.bls.gov/news.release/cpi.t01.htm  every month rent goes up by 0.1% right now. This mean that the baseline for comparison only goes up while mortgage rates had been going down and prices being stable lately. Does anybody thinks that the rent would go down?
        For how long would the rates go down?
        When would the rates go up?
        If the rates go up, would the sellers be selling cheaper or locked into low rates keep renting?

        • http://pulse.yahoo.com/_LMOV3TTTZU344AO4B26ZVXN6XA Matthew

          “As they keep fighting deflation by increasing inflation the rent is only gonna go up.”

          I’m not buying this prediction or its basis one bit. In the Bay Area, apartment/condo rental rates are the same as they were 10 years ago! Meanwhile, inflation has occurred and the dollar is 40% weaker (against the Euro, for example)

          In the past 5 years, rent rates in my apartment complex have gone up only once, by 4%, and that was 3 years ago with no change since then…

  • Maureenmswenson

    Great Article!  I wonder if you could enlighten me on the Austin market.  We put our house on the market on May 27th and the activity has been limited and spotty.  3 weekends without anything! People seem to like the house and it is definitely move-in ready having been built in 2004 and well maintained, and there hasn’t been any negative feedback on the price.  I’m just concerned about the slow activity.

    • http://blog.redfin.com/ GlennKelman

      Unfortunately Maureen, I’m not an expert on the Austin market. But we’ll find someone who is, ok?

    • http://www.MaximumValueRealEstate.com Marty Kelly

      Hi Maureen, 
      The Austin market does have it’s slow areas, and then again, some parts are receiving multiple offers.  I would ask your agent to not only revise their market analysis (CMA), but to also talk to you and show you the market absorption rate for your market area, neighborhood and your comparable homes. It’s one thing to know what your home is worth compared to the sold competitive houses, and a totally different thing to understand how fast homes are selling in your price point in your part of town.  

      You will want to know how many homes are selling per month in the three categories I mentioned: market area, neighborhood and comparable homes in your neighborhood. Is it 1 per month, 5, 10?  Then, how many homes are for sale in each category and the two numbers will tell you how long it will take to sell everything in your pool of homes.  Another good data point is how many homes have given up by expiring or withdrawing from the market. 

      I sincerely hope you are getting these numbers to help you understand your particular part of town. 

      Marty Kelly  

    • Donna

      The Austin market is interesting right now. It was red HOT in February through May, and then school let out and it’s been pretty slow… I’m working with several buyers who just decided not to buy. I’ve been working with sellers who are upset that their house hasn’t sold in 2-3 weeks even when I show them it’s taking an average of 4+ months in their neighborhood.  I try to educate as much as possible, but some times the numbers don’t help when the National News is telling people something different and they choose to listen to that instead of the local information…

    • Abanos Realliving

      Hi,

      I agree with both Marty and Donna. You have to look at the absorption rates in your particular neighborhood closely and your agent should be able to show you those numbers and give you an updated market analysis. Even though homes may comp out at XXX,  homes in a neighborhood may be taking an extended time to sell just do to the fact that there are less buyers in that particular price range and neighborhood.  I’m personally seeing some areas of Austin not getting much activity and others receiving multiple offers. Buyers right now are being very particular and wanting homes that are pristine, upgraded and a ”deal”–thier words.  I would ask that your agent let you tour the homes that are your direct competition so that you can discern whether its a pricing issue, condition or location issue. There is an old saying in real estate that “price fixes” all issues–in other words if you have a condition or location problem(can’t be fixed) then lowering the price will ultimatedly take care of the problem because everythng sells at some price. The only other factor in selling your home is the marketing that your agent is doing. Virtually everyone these days start their search on the internet so listings need to be syndicated to as many websites as possible to capture the attention of the home buying consumer. I would suggest that you make sure where your home is being advertised and be sure that the marketing plan is pretty robust.

      I hope I have given you some things to think about and wish you well in selling  your home!

      Ann

  • JIM TURANO

    June 30, 2011 Home prices stabilize article. Yes in the areas of Middle Village, Ridgewood, Maspeth, Glendale, Howard Beach, Houses have stabilized. But the real problem every buyer faces today is non other than the
    ‘BANK’. How can the economy improve if banks are denying mortgage loans and now being more strict than ever before. After being in the Real Estate Business for 31 years to date, houses are coming on the market at a faster pace with plenty of foreclosures in the rear. Howard Beach for example has ten Condo’s within the same building for sale all at the same time. Brokers discuss with me, how they are entering contracts only to find out their clients are being denied later on. Here is an opinion from an expert in the Real Estate Business from Jim Turano.  Redfin can document today as I write this Blog, when the rates start skyrocketing by next spring, you will see not only in Queens, but the entire United States, a complete 4 year slowdown in the Real Estate Industry. Thanks to the Debt we have in America, and for the Banks, they will have to find a new way of doing business other than selling mortgages, because there will be ‘no future’ mortgage business.    
    THIS IS REALITY, AND A WIDESPREAD CANCER OUT OF CONTROL THAT WILL REALLY GET WORSE!
    JIM TURANO/BROKER*DIVERSE REAL ESTATE*MIDDLE VILLAGE,NY 11379

    • http://Realvsn.com Tim Podbreger

      This is worse than all the theft of the American dream. They take our retirement and our homes and give the CEO’s mufti million bonuses Fannie Mae lost Billions and the CEO got a 4.7 Million Bonus.Freddie CEO got 7.4 Million or some ridiculous number, Paid by USSSSS. Now the banks won’t sell them to put the country back to work. As long as WE keep paying the banks to keep them They will sell blocks of 1000 to some rich foreign interest. FOR 10 times less than any HARD WORKING American could be offered. I am a California Home Inspector Real Vision Home Inspection Services. 916-802-2424

      • http://blog.redfin.com/ GlennKelman

        Love the passion Tim…

    • Jturano7423

      UPDATE,AUG.24TH, THE BANKS LAST WEEK LOWERED THE MORTGAGE RATES. NOW MANY BUYERS HAVE GONE OUT TO START THE BUYING PROCESS. AVERAGE 30 YEAR RATES WITH NO POINTS ON A 1 FAMILY IS ABOUT 4.37%. HOPEFULLY RATES TDO STAY LOW, SO NEW BUYERS CAN NOT ONLY GET A GREAT RATE, BUT A GREAT WRITE OFF, WHILE HOME PRICES HAVE COME DOWN FROM LAST YEAR.
      SINCE MY LAST POSTING,IN JUNE, WE HAVE THE STOCK MARKET DROPPING, BUT IF THEY KEEP MORTGAGE RATES LOW, PEOPLE WILL BUY, CONSTRUCTION CONTRACTORS GET MORE JOBS, THE HOME DEPOTS IN THE AREAS WILL GET MORE BUINESS, INCLUDING APPLIANCE BUSINESS, & FURNITURE BUSINESS.ALL GOOD FOR THE ECONOMY.

    • Salbarzini

      Difference between personal service, experience, quick sales, is the ‘Individual’ not the size of the Real Estate Company. A Broker who sells every listing attained quickly, without having to place it on multiple listing, or contracting a homeowner for great lengths of time, is one of the best brokers in the community to get the job done.Think about it, Broker with 24 signs on properties all around the area trying to sell your home, or one proven expert who makes it a priority to sell your home as fast as possible. Who would be more hungry to get the job done? Plenty of signs on properties and magazines full of homes for sale, versus a one man army like a Rambo on the homeowners side. There is no doubt, that Jim Turano/Broker of Diverse Real Estate, with 32 years of experience is the right person to sell your home. He deserves the mention, and warrants your attention.He sold my friends home in 2 weeks. Thats results! Like your articles which I follow on ‘GOOGLE’

  • Karineh55

    Informative & useful article. Thanks! However, I think the house prices are not that low, if you consider the money you spend for remodeling the house that was bought for less price and bringing it to life….

  • Lingtaiyin

    My own perspective is that the high end homes over 1.5m are still coming down in price due to lack of financing and declining income and difficulty to qualify for a jumbo loans. The step up market no longer exists as most of these buyers have no or little home equity to move up. The drop in price from REO and short sales are the greatest in this price range also due to lack of qualified or all cash buyers.
    Do you agree?

  • Jturano7423

    07/20/11 PRICING THE HOME CORRECTLY IS KEY!  REAL ESTATE NEWS!  WITH 31 YEARS OF EXPERIENCE,
    JUST ATTAINED A NEW LISTING IN UPPER GLENDALE, AND HAVING AN OPEN HOUSE THIS PAST SATURDAY,
    I WAS ABLE TO SELL IT DURING THE OPEN HOUSE. WHY? PRICED RIGHT! AND WHILE RATES ARE UNDER5%, HOMEOWNERS CAN GET THE MOST FOR THEIR HOMES TODAY. BUT IT IS TODAYS REALISTIC PRICES THAT MATTERS THE MOST. IF THE RATES GO UP TO 6,7% HOMEOWNERS WILL GET LESS IN OFFERS SO BUYERS CAN AFFORD THE MORTGAGE PAYMENTS. SO DO NOT TAKE LISTINGS THAT ARE NOT RELAISTICALLY PRICED. DO NOT LET HOMEOWNERS DICTATE TO YOU. YOU ARE THE PROFESSIONAL, YOU ARE THE EXPERT, PRICING A HOME RIGHT IS MORE IMPORTANT THAN GETTING AN EXCLUSIVE THAT IS OVERPRICED!
    JIM TURANO/BROPKER*DIVERSE REAL ESTATE*YOUR NEIGHBORHOOD REALTOR

  • Jturano7423

    OCT.18,2011 REAL ESTATE UPDATE: MIDDLE VILLAGE,GLENDALE,RIDGEWOOD,MASPETH, & SURROUNDING AREAS -MORE STORES ARE BEING RENTED THAN THE LAST TWO YEARS COMBINED. ‘A GOOD SIGN’.
    HOME PRICES ARE AT BOTTOM AND MAYBE JUST A TWEAK DOWNWARD ON SOME OTHERS THAT NEED WORK. RATES ARE AT NEAR BOTTOM HOVERING AROUND 4%. BUYERS & SELLERS SHOULD BE THRILLED. THIS IS THE WINDOW OF OPPORTUNITY LIKE NEVER BEFORE. SO MANY STILL SITING ON THE SIDELINES, WITH DOWN PAYMENTS COLLECTING 1% IN THE BANK, WHILE RATES ARE SO LOW, AND IF YOU BUY BEFORE THE END OF THE YEAR, YOU’LL RECEIVE FAT CHECKS BACK FROM UNCLE SAM FOR INTEREST WRITE OFFS. DO NOT WAIT UNTIL RATES BEGIN JUMPING UPWARD TO 5-7% RANGE. LASTLY, IF YOU ARE PAYING $1,500 IN RENT, IT IS LIKE THROWING YOUR MONEY IN THE GARBAGE. I HAVE SAID FOR 32 YEARS, ‘THE BEST TIME TO BUY IS RIGHT NOW’. THAT STILL STANDS TRUE TODAY!
    SO IF YOU THINKING OF SELLING, PLEASE USE A LOCAL REALTOR, WHO LIVES IN AND KNOWS THE AREA WELL. THREE DECADES OF EXPERIENCE, COMMUNITY SUPPORT THROUGH ORGANIZATIONS, IS FAR BETTER EXPERIENCE THAN USING A FRANCHISE THAT HAS AGENTS FROM ALL AREAS, AND A BROKER WHO KNOWS NOTHING ABOUT THE AREA, VERY LITTLE EXPERIENCE, AND HAS AN OFFICE IN WHAT I CALL A DEAD ZONE AREA. 
    MY RECORD SPEAKS FOR ITSELF. GOOGLE MY NAME-JIM TURANO/BROKER
    ///////////////////////////////////////////////////////                                 **************************** 

  • http://www.handylocals.com.au/listing/guide/carpet-supply-laying Carpet Supply & Laying Ransome

    nice works