I am researching the housing market and find people trying to sell homes for 20 - 30% over what the market pays. Some of them are mortgaged to the gills and will end up in bankrupcy, but almost everybody is 9 month behind the down wards curve for sqft price actually paid in specific areas.
My question is just your opinion, how long it takes for people to realize they can't get their mortgage back.
When do you think, peoples idea of their homes value will adjust to reality?
Unfortunately, most are realizing it only a few days or weeks before the sheriff's sale on the house. I work in liquidations, and we require a full short sale pkg in our hands 10 days before to make sure there is time to post pone the sale. Unfortunately, in 2007, almost 50% of foreclosures happened without the borrower calling their bank to find out options. Calls are actually starting to pick up from people current on their loans as well though. Please, call your bank to find out options...there are options to save or sell your house. To save though, u must be able to qualify income-wise.
Reply:there will always be a difference in what you think your home is worth vs what the market thinks is is worth.
Depends how bad these people really want to sell, some will stay put, others will cut the price but in the back of their heads think they shouldn't have too. Some will be luck and get asking prices over the value, maybe not that much over though.
Every piece of real estate is unique so the only true value is what a buyer will pay.
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