Yesterday a financial planner was consulting with one of our buyers interested in a home in a desirable neighborhood in Myrtle Beach, SC and she reiterated a key point and change with lending institutions regarding foreclosure inventory. Banks have been holding many foreclosures, getting them ready to sell, and releasing slowly so not to flood the market. However, Bank of America just announced they will change from releasing 7500 foreclosures a month to 45,000 (THIS IS HUGE, BUT THERE IS TIME TO REACT). In addition to the shadow inventory, also referenced as "black cloud" inventory, there are the other foreclosures banks are assuming daily. In Myrtle Beach, SC and elsewhere, prices are not increasing anytime soon ... but just the opposite due to the foreclosure inventory. I too have turned my head at the words "double dip recession" but the numbers are staggering. Foreclosures are selling because they are priced at 57% of a properties' value (SHORT SALES ARE 87% OF PROPERTY VALUE ON AVG.). Therefore, it is only FACT that a home someone paid $300,000 for could be valued at $171,000... JUST A REALITY. *Experts predict foreclosures WILL dominate the market until 2012 and recovery will begin in 2013. *APPRAISERS ARE CHECKED BY LENDERS TO USE FORECLOSURES AS COMPARABLES -FORECLOSURES COULD BE COMPARABLE SALES FOR YOUR HOME/PROPERTY HOW CAN WE SELL YOUR PROPERTY in Myrtle Beach REALIZING WHAT THE FUTURE MAY HOLD: 1. PRICE TO SELL... ALLOW SMALL ROOM FOR NEGOTIATION. (EX. PRICE AT $170,000 INSTEAD OF $200,000 IF YOU WOULD TAKE $165,000) 2. ADD A SELLER'S AGENCY BONUS, PAY BUYER'S CLOSING COSTS, BUY DOWN BUYER'S INTEREST RATES (WE HAVE TO GET CREATIVE); OFFER OWNER FINANCING, OFFER TO HOLD A 2ND MORTGAGE 3. MAKE YOUR PROPERTY EASY TO SHOW; KEEP IT CLEAN & CLUTTER FREE; LIGHT & BRIGHT This info. is to help you prepare for the future. If you want to sell, prices are not predicted to improve for 3 years, so make the changes necessary to move forward. In Myrtle Beach prices have dropped 7.8% per sf & 23.8% on average over the past year. Myrtle Beach currently has 4513 resales on the market and 561 in the pre-foreclosure or foreclosure process. Myrtle Beach home sales have decreased 63.8% over the past year. Want to sell... price to sell... want to buy... NOW IS THE TIME. For the folks who have saved and have money on hand, the future is yours. Search local properties for sale at www.myrtlebeachrealestatetoday.com/ for foreclosures & all properties in the area.
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