Things to Consider when Lowering House Prices

No one wants to hear the words “price reduction” when discussing the housing market. However, people are lowering the selling prices to get buyers to even consider purchasing their house.

As a seller, you may be wondering what needs to be done to sell your house quickly, and at a fair price for you and the buyer. Here are some quick tips that you should consider when thinking of lowering your price.

1. Have you posted the house on multiple website? You should have an active online presence, promoting the house and finding new target markets.

2. Send out a direct mail campaign. Are they informed that your house is for sale? When you send out direct mail campaigns to specific neighborhoods you might reach a certain target audience that would otherwise been missed.

3. If you are not motivated, try renting out your house or staying put until the market rebounds. Sometimes you just don’t need to sell that quickly. You should try to hold on to the house until you can get a fair price.

4. Consider the condition of the house. Maybe replacing old carpet or painting over damaged walls would help buyers feel more accepting of the price you are asking for. As talked about in a previous blog, the house should be in complete order and clean for the viewers’ eye. The yard and surroundings should be welcoming so that the buyer does not leave before viewing the inside. “Curb Appeal” is vitally important. Is the house free of any expensive repairs that might need to be taken care of?

5. You should run a Comparable Market Analysis to see how houses similar to yours have sold recently. This will be the real test of if you house is priced to high. A CMA includes information on the selling price and features of nearby homes that have recently sold or whose sales are pending. Remember, it’s not the asking prices that matter; it’s what the houses are selling for that is important.

For more information on lowering selling prices, visit www.123SellHouseNow.com.

Foreclosure Made Easy

The news and other sources of media are constantly talking about foreclosure rates and increases. However, do you know exactly what foreclosure is? Here are some quick and easy information explaining more on what foreclosure is, and how it progresses to one losing their home.

Foreclosure is defined as the proceeding in which a lien holder has the right, based on the “power of sale clause”, to sell the property to pay the home loan balance. It occurs when a homeowner is unable to make principal and/or interest payments on their home.

In the state of Georgia after an average of 90 to 120 days, the lender orders a trustee to record a Notice of Default, or a statement saying that the homeowner is delinquent in payments. However, some states can be upwards of a year. If the default is not corrected, a sale date is arranged, the homeowner is notified of the sale and the house is put up for auction.

After 60 days of non-payment the property can be listed in the legal papers for four consecutive weeks, then the house is foreclosed on. In as little as 90 days a property can be taken back by the bank.

Being primarily a non-judicial state (does not have to go in front of a judge), Georgia has one of the quickest time frames to foreclosure. Also, Georgia does all of their foreclosures on the first Tuesday of each month for the entire state. This is often referred to as “Super Tuesday.”

According to CoreLogic, the Atlanta Metro Area’s foreclosure rates increased by 1.14 percent since March of 2009, and their 90 day plus delinquency rates have increased by 4.63 percent.

For more information on foreclosure, visit www.123SellHouseNow.com.

What does "House Underwater" mean?

House Underwater, negative equity, and upside down house all translates to the same meaning; a homeowner now owes more on their mortgage than their house is worth. In the state of Georgia 23 percent of all mortgages are listed as “underwater.”

With prices of houses notably lower than they were at the peak of the market, homeowners are struggling to make payments and/or sell their house. This often leads to foreclosure. According to a study of 10 major metro areas by First American CoreLogic for USA TODAY, a typical borrower who is “underwater” will not see positive gains in equity until 2015 to 2020.

To think about what “house underwater” means in literal terms, view the following chart:

For more information on what "house underwater" means, visit www.123SellHouseNow.com.