Now What Are People Waiting For?

Curious what people are waiting for? Every short sale investor should be because the same excuses are those you are likely to encounter on a daily basis. Oddly enough, some tend to remain the same over time while others change according to the economic climate. Here are the top reasons for waiting to sell or entertain a short sale offer as cited by most potential clients as of November 2009:

1. Waiting for the market to hit bottom and begin rising. Sadly, many homeowners have been led to believe the worst is over for the real estate market but most experts disagree. Take time to educate homeowners on the coming ARM adjustments combined with rising credit restrictions.

2. Waiting for the season to change…literally. Homeowners have been told spring is the time to sell so they are waiting for warmer weather rather than risking a lower price now. Explain that buyers are serious and the cost of waiting several months is to just get more behind on the mortgage. Instead, they can have a fresh start with the coming of the new year.

3. Waiting for Days to Disappear. If they have previously listed their home without a sale, many homeowners try to remove the home from the market for a short period of time with the hope of “resetting” the days on the market listing to zero. Explain how pricing right is the best policy rather than trying to play “head games”.

4. Waiting for government Incentives. This is a big reason behind many delays for both buyers and sellers. Buyers are hoping for more tax breaks while sellers are praying for bigger bail-out funds. Although the federal government extended the first-time buyer credit and included a clause for current homeowners that will sell in order to purchase another property, not everyone qualified. Likewise, bail-out funds designed to save homeowners from foreclosure have only reached a small number of those in need of assistance. Experts agree there is little hope of relief for the majority of homeowners.

5. Waiting for even lower interest rates. Currently rates are near historic lows with some dropping below 5% for a 30 year fixed mortgage. While there is some debate on whether mortgage rates will continue to drop, few believe the deductions will consist of more than mere partial points (at most). On the other hand, there is a general consensus that credit terms will continue to tighten making it even more difficult to obtain an affordable mortgage even if prices remain low.