The Ups and Downs of Real Estate

There was a time in most parts of the country when real estate prices never went down--at least hardly ever.

We have not been so fortunate here in Palm Springs. I have been working here in real estate since 1984. This is the third time I have seen prices deflate. Not to the extent they are deflating right now, of course.

The difference this time is that prices never before have reached such a high level so fast that housing has been in a highly inflated bubble. I have not represented a buyer in a property purchase since 2004, since I felt that prices had reached unsustainable levels at that time. I have, of course, represented many sellers during that time and felt that it was a great time to sell.

We have been coming out of that bubble with falling prices since 2007. Now, that scenerio seems to be changing. That is not to say that prices have quit falling, but there are now some excellent values, and it could be a great time to buy if you are careful, and are represented by a Realtor who is knowledgeable, experienced, and takes your needs seriously.

Are You Interested in Foreclosures?

There are some great deals on foreclosure properties available, but there are many reasons to be cautious:

• Not all foreclosures are bargain priced. Many are grossly overpriced.
• Almost all are in less than ideal condition. Some things to look out for are "do it yourself" improvements without proper permits; hidden inherent defects; missing systems or parts of systems.

A home inspection by a qualified inspector is an absolute necessity in all cases. Often it will be necessary to call on a specialized inspector also.

Don't even think of buying a foreclosure without the advice and services of an experienced Realtor who represents you, not the seller.

If you think you would like some additional information on foreclosures, click here and register to receive regular information on foreclosure properties available in your price range.

How About Short Sales?

Buying a property subject to a short sale, where the lender is willing to accept as full payment less than the loan balance, can ge a great alternative to buying a foreclosure.

The buyer is entitled to the same disclosures as on a regular sale, and usually the owner still lives in the home, so it has not been subject to the long term vacancy and resulting deterioration as a foreclosure.

The only negative to purchasing this way is timing. Waiting for the lender to make a decision can be an emotionally grueling experience, but also a very rewarding one. I have seen some properties sell for less than 50% of their previous sales price.

If you are interested in pursuing a short sale, click here to register on my foreclosure web site, then let me know either by a phone call or an email that you are interested in short sales.

Do You Want or Need to Sell?

This can be a very frustrating time to try to sell your home. Most of the sales in this area at present are either foreclosures or short sales which means, of course, that your home or condo needs to be priced accordingly to sell. For a reasonably fast sale, you will need to think in terms of pricing your property at 50% to 65% of its value at the top of the market in 2006. Also, keep in mind that prices are still going down, so the longer your property sits on the market, the lower the price will be. Don't list high and follow the market down. We would be happy to give you an estimate of your probable sales price with no obligation and no charge to you. Just contact me. We can also help you with a short sale if you owe more than your property is worth.

What a Great Time to Buy!

Prices are at their lowest level in five years, and there are lots of properties on the market. You should have no trouble finding a home that is just right for you. But for the best service from a team of very experienced agents, along with a knowledge base of independent support services that we have known and worked with for many years, contact me.