What does this mean for those selling… that it is once again a sellers market. That asking price once again retrieves dozens of contracts, over asking price, many from cash buyers.
What does this mean for those buying… that the market is once again competetive and will weed out those looking for distressed bargains.
What does this mean for those looking to modify… that the lenders will most likely make less and less principal reductions, as appraisals show that mortgages are once again not so far apart from fair market value and will not pass the NPV test. Many that refinanced or took out second mortgages or HELOC’s may still experience negative equity, but it may be harder and harder to modify. Proper, uninflated values must be closely calculated and provided to the lenders.
What does this mean for those short selling… that once a BPO is ordered, a bank may likely counteroffer on price as the buyers are coming in too low for fair market value sustained prices.
Whether you are looking to sell or buy, now is the time to once again use increased scrutiny when placing an offer or accepting an offer. It appears that we are once again riding another bubble that may likely burst if inventory is set loose.
Stay tuned for 2013 1st Quarter results.
LAW OFFICES OF JACQUELINE SALCINES, PA
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