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Old 07-26-2007, 04:59 PM
az2fla az2fla is offline
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Default Re: Trying to Sell Your Home

That's the problem Darbyduff! No one's getting any steals on these foreclosures. That is, not yet! The banks are getting these properties back onto their balance sheets and when they start releasing them onto the marketplace that is when the deals will be made. At that point, those who have homes to sell will have to compete with the newly "released-to-the-marketplace" foreclosures. Guess what happens....prices will tumble! I moved to the Denver area in the late 80's. You will recall the housing recession there due to the exiting of the main industry at the time in Colorado - the oil/energy industry. There were HUD 4-Sale signs on every corner. It was a great time for buying but not for selling. You'll recall it took about six years for that situation to work itself out. Those who had to sell were happy to get a buyer; any buyer. The sellers were like Henny Youngman: "Take my house, please!" The price didn't seem so important anymore.

And The Villages will not be immune to this. There may not be a large number (or even any at all) of foreclosures in TV, but, if someone wants to sell, there will be fewer buyers. Answer: prices fall in TV, as well.

Remember that the banks and mortgage companies are not in the home ownership business; they're in the money-lending and money-making business. They must recoup as much as possible. If that means turning over a property for 50 cents on the dollar, they'll do it. They cannot hold these properties on their balance sheets for ever. Now, more than ever, is a time to price your property correctly. Nobody is going to get what they thought they would for their house. Nobody! Resales in The Villages will eventually reflect the price drop that the rest of the nation is experiencing. The Developer knows this and has been discounting inventory for some time now and will continue to do so.

Fortunately for the nation employment is still robust and taxes on businesses and employees are reasonable. Should the geniuses in Washington change that by raising taxes during a time like this, recession will be a certainty and most people will not, under any circumstance make a purchase as large as a home. Uncertainty about jobs will keep most everyone from making any major purchases.

What we think are ridiculously low prices today may end up being a rational price a year from now. In the meantime, a seller would have continued paying fees, taxes, bond, etc for another year and end up selling for a price they could have gotten this year. It would be great if this housing implosion had not occurred. But it's a different time now so we have to adjust our thinking.