Selling a Home in a Foreclosure Market

If you absolutely, positively don’t have to sell in this market, then don’t, but if you must, whether now or five months from now, take the plunge now.

The slowdown in foreclosure activity could mean somewhat less competition.

But even more critical, there is the boomerang effect to take into account. The number of foreclosures is expected to skyrocket as we head deeper into 2011

Foreclosure sales were once rare. In some markets now, they make up 20 percent to more than half of all sales.

If you are a long-term homeowner who has kept up on your mortgage payments, you need to get that message out. This is your key advantage over a much lower-priced foreclosure, especially in light of the robosigning mess.

The buyer knows who he or she is buying the home from — no title issues here.

You can bet savvy buyers these days are going to come in with a stack of comps, many of them rock-bottom foreclosures.

Provide your own market analysis, one that can help highlight the challenges facing foreclosed properties.

Your first report should be comparable homes sold in the past few months, with foreclosures broken out separately if mentioned at all.

The second should detail homes currently on the market. That will help you frame the decision on favorable terms: Buyers should consider homes like yours instead of foreclosures.

The aim is to sell your home and maybe come away with a small gain. Forget about making a killing. Few homeowners who are current on their mortgage can match a foreclosure price.

Buyers are still looking for low prices. Take a look at what other nondistressed properties are selling for in your neighborhood and then price below them.

Drive home the point that the price is the price — with foreclosures the bank can take a better offer right up to the day of the closing.

Many buyers haven’t a clue about what it takes to buy a foreclosed home.

In many cases, individual buyers don’t stand a chance as they end up competing with investors ready to pay cash.

If a buyer or agent doesn’t know this, enlighten him or her. There is a significant percentage of buyers (that) could not buy a foreclosure if they wanted to.

When all else fails, call an expert. Call a real estate professional to help you get your home sold. Going it alone, ESPECIALLY in this market, could be the most foolish decision you ever made.