People in many areas of the country who want to relocate are finding out just how depressed the housing market is. In some locations, homes that are fairly priced according to realtor recommendations are sitting for months on end without generating any interest let alone acceptable offers. This is very disheartening for those who want to move, and many are finding themselves unable to afford their homes due to sub prime loans that are due to adjust, and due to other unfortunate circumstances, many are forced into foreclosure and bankruptcy.
The market is literally flooded with foreclosures in some areas, and it’s no wonder why. With realtor fees ranging on average from 5% to 7%, many homeowners can’t afford to price their homes to sell in a depressed housing market, but realtor fees aren’t solely to blame. Homeowners must leave room to negotiate when pricing their homes, and some must account for penalties for selling before a specific date. After refinancing and paying huge closing costs charged by greedy secondary lenders, some people are discovering their homes have been priced right out of the already stagnant and severely depressed housing market. Some who took out sub-prime loans were told beforehand that they could easily refinance before their loan was due to reset, but once again, many unfortunate homeowners are being kicked while they are down. Huge refinancing fees are tacked on to new loans, making the monthly payment unaffordable and completely unacceptable.
What can homeowners do to sell their homes without giving them away or being forced into bankruptcy? Could trading homes be the answer for those who are trapped, and for those who are on the brink of losing their life savings to a depressed housing market? Many people would love nothing more than to relocate, but they are finding themselves stuck after trying to sell, and trading homes could be the solution in some situations. People unable to sell through a real estate company due to affordability issues would jump at the prospect of trading homes in order to downsize, upgrade, or simply relocate.
My home in Albion Indiana is currently on the market, and after waiting 2 weeks for the realtor to finish placing pictures online and setting her signs, I’m still waiting for potential buyers to request a showing. My goal is to relocate closer to my family in northwest Indiana. I’m afraid I will be long gone before anyone ever considers buying my $180,000 home. No matter what area realtors are saying, the northeast Indiana housing market is no-doubt severely depressed. I’m not willing to refinance and add even more debt to my loan payment that is already beyond affordable. Circumstances beyond my control forced me to refinance 2 years ago, and now I’m in a sinking ship that I’m ready to bail on if help doesn’t arrive in the form of a buyer or someone who would consider trading homes.
It doesn’t take a real estate agent to see that homes in all price ranges in my area aren’t selling, and homes that finally sell are going for way below market value in this severely depressed housing market. Homes that were supposed to increase in value are being sacrificed to a depressed housing market, and they are going to those who can afford to take advantage of the financial misfortune of others. Why would potential home buyers pay what a home is actually worth when they can obtain foreclosures for less than market value? Two years ago my home appraised for $200,000, and I have added many improvements to increase the value, but why should I expect anyone to buy my home when homes of similar value can be obtained for much less?
I think it would be beneficial for other homeowners who want to sell their homes to consider trading rather than using realtors as middlemen to advertise and complete real estate sales transactions. Yes, realtors are no-doubt skilled professionals who understand the housing market inside and out, and they make the process of advertising and selling much easier, but at the cost of $10,000 if my home should happen to sell, trading homes would be an affordable alternative. Hiring a lawyer to take care of the paperwork and make sure everything is legally correct before trading wouldn’t be nearly as costly as paying a realtor when selling. Trading would allow people in a depressed housing market to relocate into a home to meet their needs as well as their budget, and I think that trading homes in a depressed housing market is the solution for those who are in similar situations.
People who find themselves unable to sell in a depressed housing market need to take matters into their own hands and stop giving their hard-earned money to middlemen. I would be more than willing to consider trading homes with someone from northwest Indiana who financially qualifies and wants to relocate to northeast Indiana. Trading homes sounds like a viable option for those who can’t find buyers in a depressed housing market, and I’m only one of a countless number of people who are finding themselves in a ship that’s quickly sinking out of sight.