A FRIEND ASKED ME A QUESTION ON HIS BROTHER'S BEHALF. HIS BROTHER IS LIVING IN A NEW HOME HE HAD BUILT A FEW YEARS AGO AND WANTS TO MOVE. HIS REAL ESTATE AGENT (Not Me) HAS SUGGESTED THAT THE BOTTOM IS GOING TO FALL OUT OF THE MARKET AND PERHAPS HE SHOULD TAKE HIS HOME OFF THE MARKET AND SELL IT SOMETIME DOWN THE ROAD. THIS QUESTION PERTAINS TO SO MANY PEOPLE, I AM POSTING MY RESPONSE IN MY BLOG:
That's quite a crystal ball that agent has, and I hope they are not correct. Although that dramatic of a decline is not something I've heard about or am aware of we have perhaps learned these past few years to be less surprised by such dramatic changes. The market here is expected to take another dip, but the dip we've taken so far has been down about 26%-28%, depending on which economist you follow, and I am unaware of another anticipated free fall like that. If you follow Case-Shiller Indices you will see that there was a tiny increase about 6 mos ago and another decline about 3 mos ago in the Chicagoland market with another tiny decline anticipated by Nov 2010. After what we've been through that one won't even feel like a pinch. There are many other factors, however, that I would need to be in tune with to offer any more of an opinion. For instance, in your brother's subdivision do they have an unusually large number of foreclosures? If so, that is wreaking havoc with getting loans financed even if you are fortunate and have a buyer. In August we will see what kind of impact all the commercial loans coming due has on the market. There are a huge number of commercial balloons coming due which could be candidates of foreclosure and that could give the market another hiccup. Have I put you to sleep yet? I would suggest to your brother that if he needs to sell for financial reasons like a majority of people out there today (can't afford the house anymore for whatever reason, be it change in financial circumstance or whatever) that he needs to speak with someone who is experienced in handling short sales. Be sure to tell him that won't hurt his life or his credit like a foreclosure or bankruptcy will. People who are hurting right now may tend to sit idly by and hope things will improve. That is my hope too, but if there is a need for financial relief this is not a time to be ashamed or hard on yourself. It's time to ask for help, to ask for guidance on how to move through the tricky waters of finding your way to the other side of debt and disappointment. I would be happy to either help out or to recommend someone in whom I have confidence in this regard. We actually have a short sale team here at Keller Williams Fox Valley so we are able to offer special, experienced attention to ushering a homeowner and their property through the process. We have an extraordinary success rate of getting them done and allowing the owner to move along with life. If, however, your brother is not in a financially distressed situation, and just is wanting to move for the fun of it, then he may want to either reconsider and stay put until things level out a little (think maybe by 2012 we'll feel a lot better) or if he's really got the "I've got to move bug" bad then maybe he may want to consider renting his house out if he can do so for enough money to pay for the mortgage, and rent wherever he's going. Lots of options. Please let me know if I can be of help. I can be reached at 630-513-3810 at my office at Keller Williams Fox Valley Realty. http://GoRussellRealtor.com for more details on the market plus more
