this scenario, you must also think of lowering the price on your home to preempt and compensate for the drop in area values that is likely to follow in the wake of foreclosures. Do not be misled by the statistics that project only a modest decline in the sale prices. Many sellers might announce some attractive incentives and credits in order to sell their properties. Therefore, when the statistics are showing only modest price drops, sellers end up netting more than what they would otherwise lose due to the drop. In cases where higher end homes are selling better than starter homes, the median sales prices could give false readings. Under such circumstances, the drops in median sales prices reported will understate the degree of the downturn. Know that in some areas, it is possible for the median sales price to rise even when the home prices are falling. When your home price has dropped by about 15% and the price of your replacement house has dropped equally, the market is in your favor if you are selling the property in order to trade up. You might even consider lowering the price if your mortgage payments are actually bleeding and you are seeing considerable losses month after month while the sale is delayed. Be cautious and skeptical with the advice of unethical real estate agents who offer to buy your listing on the claim that you have quoted lower than what you could have. It is not uncommon for less scrupulous agents to claim you’ve set your price too low, then later ask you to lower the price once you have paid them for the listing. Also, do not be deluded if the neighbor selling his property is quoting an escalated price. Your neighbor unrealistically quoting the price of his identical property at $300,000 does not mean your house is also worth that much. You need to exercise your discretion to know when you should increase or lower the prices you have quoted; at the end of the day, it comes down to your own
43
Powered by FlippingBook