Seems like I go over this several times a week with potential sellers. What are their options in this real estate market?
Here are my answers –
1. Sell it – easier said than done. This can be difficult to do if they bought it or refinanced it during the 2003 to 2008 range as many owe more than the market value.
2. Sit & wait it out – not the best choice in my opinion as I don’t see any reason things will be better over the next couple year. There number of properties in distress and in foreclosure continues to remain on the higher end. Until these slow down, things won’t necessarily get better. Unless you plan on waiting it out 5-10 years, I’d look at other options.
3. Rent it – many sellers who cannot sell choose this option to help defray some of the costs.
4. Short sale – selling the home for less than what is owed. These are starting to get easier and more prevalent however there is still a lot of lender red tape and restrictions.
5. Walk, let it go back to the lender – this is a hot topic. Depending upon how you look at it, from a business or moral perspective, will have a big effect on the decision.
I am sure there are other options, holding onto forever is just one, but these are the top 5 that most owners choose.
Each one of these has its own advantages or disadvantages. In the end, it is up to each seller to make the decision that best fits their needs. One size does not fit all, that’s for sure.