As the pace of home sales drops and the inventory rises, we are starting to get a lot of requests for short sale advice in our office. As we have warned and projected, more and more homeowners are finding themselves upside-down in a market where values continue to slide.
One lesson that we have learned over and over from all of property owners that are trying to do a short sale in Tallahassee is that first-come, first-served rings very true in this ever-changing industry. I cannot tell you how many clients who sold in the past two years have called to share their happiness as the market continues to move down from where they succeeded in selling.
Short Sale Advice In Tallahassee
We advise our home sellers in Tallahassee that they should decide whether they are going to stay or go. If they can afford to stay (or don't mind staying) for the next 7-10 years, then we advise them to get their home off of the market and quit following the housing market in Tallahassee. After all, we are very bullish on the long-term prospects of real estate in Tallahassee, we just need the excess inventory to be consumed.
But if a homeowner needs to go (that is, they need to get rid of their Tallahassee home) then we advise them to think of an upside down house in a little different light.
An upside down house should be seen as a home with two mortgages: The first mortgage is the one that can be paid of when the home sells while the second mortgage is the one that they might end up taking with them.
Even if there are more than one real mortgages on the property, this mentality can be very beneficial for the homeowner. By converting the negative equity in the home to a "paper" problem, they can immediately set about solving their real estate problem by selling the home as a short sale. As we have found in the past, the sooner they fix it the better off they will be and the smaller the "second" mortgage will end up being.
Joe Manausa, MBA is a 26 year veteran of real estate brokerage in Tallahassee, Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.