Which pundit has been spreading rumors about a recovering housing market? Nationally, foreclosures are still climbing. That doesn’t sound like recovery to me; that sounds like there’s still wiggle room in the downward spiral of home prices.
Here in Westchester, I think many homeowners who bought high should realize they MUST sell low if they are to survive. It’s called the short sale and you can benefit from it but your real estate agent won’t tell you that; your Mom and Dad won’t tell you that; heck, even the condo association won’t tell you that. Why?
1. Many real estate agents are starving right now and think if they leave your home on the market for a year, things will get better and they will earn a better commission. OK, that’s their agenda.
2. Mom and Dad will tell you to hang in there because they have never seen it this bad and they are likely from the generation which still believes your home is your best asset (personally a bag full of cash in the basement is better right now. Cash is king!)
3. The Condo Prez doesn’t want his unit to fall in price so he’ll tell you that units are selling well over asking price.
If your home has been on the market for six months or more and you have only inched down the price by $20K or less, time to breathe deep and take it on the chin. Drop the price $50K, $100K whatever it’ll take to get it sold. It’s only worth what someone is willing to pay for it and if no one has met your price in six months to a year, what does that tell you?