You CAN Handle The Truth

Remember that famous line delivered so vehemently by Jack Nicholson in A Few Good Men, “You can’t handle the truth!”? I love that line. It so eloquently explains half of the problem with getting to the truth today.  The other half of that is that some don’t want us to know the truth. 

Last week, I shared why I believe America’s economic situation will get worse beforebefore getting better and exhorted everyone to begin planning to survive the upheaval.This week, part of what I want you to know is WHY foreclosures are going throughthe roof while the loan modification program is going largely unused. Is it becausehomeowners are not applying for the loans? Nope. Watch this video.

Is your blood boiling yet?

Here is the truth: America’s economy is in trouble and it is affecting all of us. But here iswhat you need to know about buying or selling real estate in this market. Buyers: Don’t let a fear of the market keep you from purchasing a home, just buy in the smartest way
that you can. Buying is still smart in this economy if you believe that you will be in your home long term. Purchasing with the idea that you will turn the house in under 5 years is not a good idea unless you really do need to move.

If you know that you will need to buy a home within the next 2 years, it will be better foryou to make the move now if you can. Why? Because mortgage restrictions are gettingtighter and tighter. Prices are going down, but increased restrictions on mortgages may prevent otherwise qualified buyers from purchasing in the future.

Here is how to purchase now and still be ahead of the market. When you decide to buy, take into account any future price reductions you think may still happen. For instance, if you think prices may fall another 10%, make your offer between 10% and 12% below the list price.

Sellers, there are things you can do when listing your home. The first is to negotiate a better deal on the commission with your agent. Many agents just won’t budge on this, so just find one who will…or call me! There are many ways to structure a listing contract. When you are close to being upside down on your mortgage, the last thing you need is an agent whose only concern is to squeeze every penny you have out of you.

If you are already upside down, please don’t do what 75% of all Americans are doing right now which is simply walking away. The banks are the bad guys in this economy, but homewoners who walk away without trying to work with an agent on a short sale only add to the economy’s woes. One cultural value Americans need to return to is that of caring how our actions affect others. So, call an agent…or me!

Homeowners with some “head room” on their mortgage’s pay off amount should consider pricing their home right at market value in full knowledge that buyers will offer less. You have to know up front what your bottom line really is. And if that bottom line is not flexible, then you must be willing to let your home remain on the market for the long term.

I know money is tight, but minor fixes to your home will increase its marketability and value. Simple things like cleaning the carpets, removing the clutter, painting and simply keeping the yard looking nice can raise the value by up to $10,000. Make the effort. It will pay off.

Jack was wrong! Not only can we handle the truth, and keep our lives as sane as possible, but we can use the truth to our advantage.

This entry was posted on 02/17/2010 at 13:56 and is filed under Branson/Tri-Lakes Market, Advice For Buyers, Advice For Sellers, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response or trackback from your own site.