Foreclosure Market Blues Compared To Stock Market

July 1st, 2008 | Tags: Foreclosure Market

It is better to face the reality and compare foreclosure market blues to the stock market. There is no point in skirting the issue that house owners are on a wobbly sea – the future being dark and uncertain.

Zoe Liston is an appraiser cum realtor from the Twin Cities. She advises that it is best to think of the property like a stock. The best thing is to hang on to it. Foreclosures are worrying not only to those being foreclosed upon but also all other property owners and loan takers. Liston has been a realtor since 1994 and an appraiser from 1998. The thumb rule is that when the market fluctuates it is best to cling on it. A house is a long-term investment – people have forgotten this golden rule. The last few years have clouded their vision. Suddenly a craze developed to use the house to make quick money within four to five years. There was no logic in the thinking. Liston commented, “Too many people used their house like a bank account.” They put in $250,000 for a property that quickly sold for $30,000 and there was money for a quick vacation splurge. Liston adds that the times are frightening but if one can hold on to the house the clouds will pass.

But the question remains – what about those who have no alternative but to sell their houses? The first thing is to take the bull by the horns and face reality. The price of a house is determined by its location. A property in Edina is more costly than one in Richfield. There is another way of getting to the heart of the buyer – make embellishments; do some cosmetic surgery before placing it on the shop shelf. It is best to remember figures – 68% of the buyers are couples and 22% belong to the fair sex. Thus 90% of the buyers are women! Hence find out what appeals to them most. It might sound sexist but it is the reality. For instance, if there is a choice between doing up the garage and the kitchen it is better to pay attention to the latter. What to do first –the roof or the living room? Definitely the living room if you want to sell it and the roof if you want to live in it. The house must be trimmed up to look like a showcase home with all the clutter gone leaving behind a fresh coat of shine.