A Move Based on Fact!

We are receiving a flood of news from cable, newspapers, and local and national sources of information. One day we hear the real estate market will recover in 2012, and the next in 2020! How do we know which source will offer us the most accurate information to time our move to our best advantage?

The best sources I find rely on  fact not opinion. These seeds of truth are our best hope for assessing the current and future real estate trends so that we can best plan for the future. Prices in real estate in our 4-county Metro-Milwaukee market have adjusted downward about 25%-30% on average since the peak of 2006, with some areas less and some more. Condominiums have been hit harder in this recession, as more buyers are choosing to rent rather than own. Single family homes are still desirable for young families, with surveys showing that young folks still rank homeownership desirable verses rental properties.

The source of much of our real estate woes are foreclosures and short sales. Sale prices of these types of transactions are typically 30-40% below homes that are sold in good condition and not in financial distress and condition. All sources project a substantial number of new foreclosures arriving in our market place in the coming months due to a moratorium caused by legal issues regarding the filing of these foreclosures. This is fact. Therefore, it may take 3-5 years to sell these properties and then return to a stable market. 

If you are a long time home owner who is using your home as your nest egg and want and need to make a move…do it now. You will probably have more proceeds this year than next due to the market situation that I described. I’ve seen so many folks putting off a needed move and then have a health emergency while waiting. This can put additional pressure on not just the homeowner, but their entire family. A move while relatively healthy is preferable to one that is in crisis management.   

If you are home owner that will not be moving in the next 3-5 years, I would recommend upgrading your home both structurally and cosmetically. Buyers today place a great value on condition. They will pay substantially more for a home with contemporary decorating and solid condition, than a home needing updating. The difference can be as much as 30% from top condition to average condition. Call a stager before making changes so that you upgrade with today’s buyer in mind, rather than your own cosmetic tastes. You will be happy that you did, and I think you will enjoy today’s new designs as they provide much peace and serenity by color choice.      

In summary, if a move would improve your lifestyle and provide better security and conform to your heath needs, I would make that move as soon as possible. If a move is just a few years off (3-5 years) then I would invest in your home’s decorating and structural condition. Either way, using information that is real and accurate will provide your best chance for a successful move!

Bruce Nemovitz is a Senior Real Estate Specialist, as well as Certified Senior Advisor. Bruce has sold residential homes in the four county Milwaukee-Metro areas for 33 years. He has just received the 2010 “Realtor of the Year” from the 3,800 membership of the GMAR (Greater Milwaukee Association of Realtors). He has been listed in Milwaukee Magazine’s 5-Star Agents list for three years in a row. As such, he’s one of only a handful of Realtors who are continually included in the top 7% in client satisfaction in the Milwaukee Metro area. He’s rated A+ by the Better Business Bureau, and was a finalist for Concordia College’s Ethical Business Leadership Award. He has  published a book called “Moving in the Right Direction”, A Senior’s Guide to Moving and Downsizing.  He works with his wife Jeanne at Realty Executives Integrity. Please feel free to call Bruce or Jeanne with any real estate questions you may have at 262-242-6177, or email at Bruce@BrucesTeam.com. You can go to their website at http://www.brucesteam.com/ and view the many articles and important information related to moving and downsizing!