Distressed Home Sales Have Not Gone Away
Even though the Tallahassee real estate market recovery made a turn for the better two years ago, we are still dealing with a large number of distressed homes for sale that must be sold.
Short sales, foreclosures, pre-foreclosures, REO properties all still exist in abundance, and these distressed properties represent competition to the arms length home sellers who are ready to make a move.
So if you are thinking about selling a home in Tallahassee, make sure the listing agents that you interview are able to walk you though an analysis of the competition that you will face so that you can market your property accordingly.
Distressed Home Sales Report
The good news is that while 1 in every 3 homes sold in Tallahassee is under "distressed" conditions, this is the lowest ratio of distressed homes sold in Tallahassee since 2010.
Additionally, due to the conclusion of the Mortgage Forgiveness Debt Relief Act and Debt Cancellation, we are seeing short sales just about disappear from the market.
In the real estate graph below, we see the distressed home sales each year through February broken down into two groups: short sales (blue) and non-short sales (red). The blue line measures the ratio of short sales to all distressed home sales.
Currently, only 6% of all distressed homes sold this year have been short sales, and whether or not they decide to extend the Mortgage Forgiveness Debt Relief Act for all of 2015, we will likely see this part of the housing market recede into history.
I worked for 15 years in the real estate brokerage industry without hearing the term "short sale," and I'm hoping that when normalcy returns that part of the housing market will be gone for good.
Selling A Home
If you are planning to sell a home, make sure you take the time to understand how the inventory of distressed properties will impact the sale of your home.
There are several areas and price ranges in Tallahassee that will feel almost zero impact from this segment of the market, yet others still face a very active threat from distressed properties. The mix of your competition should impact the way that you should go about selling your home.
If you would like to know more about distressed homes in Tallahassee, just drop me a note and we can schedule a time to discuss your current needs and wants.