Distressed Sales

In an earlier post I mentioned that we have begun to see a few more distressed sales on the near West Side of Madison. While other parts of the country have seen LOTS of distressed sales, we here in Madison have been more insulated.

I should explain that distressed sales can be "short sales", where the homeowner owes more than the fair market value of  the home.  Distressed sales can also be foreclosures, where the bank has repossessed the house.

In the last few months we have seen a couple of distressed sales, two that I know of in Sunset Village.  I'm sure a tragedy of the economic times we are in.

The housing experts tell us that banks have been holding back the distressed property so as not to further deflate an already depressed housing market.  Word on the street is that many of these banks will begin to release these properties on to the market in the coming months.  Perhaps we are seeing the beginning of that trend now.

For investors with cash flow, there are deals to be had.  For those thinking of selling in the next 6-12 months, not such good news.  The distressed sales will be used as comparables, which could and probably will, decrease the value of the sellers home.

I wish I had a crystal ball so I could forecast the outcome of our current economy, but of course, I don't.  The best advise I can give is that if you, or someone you know, is considering selling your home in the near term it would be wise to get out on the market early, before the banks begin to release more distressed property.  If you currently have a home on the market, be sure that it is priced competitively and shows exceptionally.  That's what it takes to sell today!