Homes for sale in Huntsville AL / It's hard to overcome neighborhood values

Homes for sale in Huntsville AL / It’s hard to overcome market values. July 25, 2011
Tags: Homes for sale in Huntsville AL, Homes for sale in Huntsville Alabama, Huntsville Houses

It’s hard to overcome the market values in a given neighborhood. There was only one very low sale and there are five active listings with the highest being lower than where you need to sell. Even if you found a buyer at your target price the lender’s appraiser would have to find recent sales at that level in order for the buyer to get a loan approval. Without supporting sales the loan would be denied.

Another factor to consider is that when a house first goes on market, it receives the most attention. It has to be in it’s best condition and be priced within the market range for those first several weeks. After a property has been on market a long time without selling buyers and realtors often assume there is something wrong with the house. It becomes a “stale” listing and receives very little activity.Huntsville Houses – Huntsville Alabama MLS search, Automated Real Estate Search, Home Value and Real Estate Market Updates, Huntsville Alabama area Rental Homes, Property Management.

An option for you might be to wait until about 3 – 4 months from when you need to sell before putting the house on the market. We are seeing an improvement in the local market and hopefully values in your neighborhood will have improved. Another option is to offer the house as a lease purchase to attract more potential buyers. If the house won’t sell you might consider renting it until values improve. Homes for sale in Huntsville AL
If you would not be able to make mortgage payments on your house if it doesn’t sell once you leave the area your lender may be willing to do a short sale. Allowing the house to sell for less than what is owed in order to avoid foreclosure. Your credit would be effected but you would avoid a foreclosure and the lender not you would take the loss.

I had one client who moved here from the DC area. Property values in her area had plummeted to the point that there was no possibility of selling. While her credit was still good she purchased a house here and then informed the lender of the DC house that she could no longer make the mortgage payments and deeded the house to the lender. Her credit took a horrible hit but she was able to provide a place for her children to live.

These last two options are obviously last resort options but your situation is not unique. Over the past two years we have helped a number of clients who’s property values dropped to well below what they owed on the house. Several had to do a short sale, we were able to get tenant buyers under a lease purchase on three houses and we have over a dozen rentals where the seller is waiting for the market to recover before trying to sell again.Homes for sale in Huntsville AlabamaHuntsville Alabama MLS search, Automated Real Estate Search,

I hope this information was helpful and I regret that the sales data wasn’t better news for you