According to Redfin and the NY Post, 2% of home sellers have taken their properties off the market over the past three months.
If you are among those that have already given up selling your home in NY, or are contemplating it, what can you do now?
Home Buyers And Home Equity Are Evaporating
Coverage of this new real estate data blames a lack of offers being made. With some sellers not receiving any offers. While others are realizing they missed the peak of the market and aren’t going to be able to sell for as much as they could have a few months ago.
With rising taxes and other costs, and the cost of a mortgage now up 40% this year alone, even fewer buyers are likely to be in the market, or able to get financing ahead.
Meanwhile New York already has one of the highest amounts of homes with negative equity already, and housing prices are predicted to fall another 20% in 2023.
What Happens Next?
As homeowners pull their listings off the market they are only really looking at two likely outcomes.
The first is that they end up in foreclosure and losing their homes. This may be due to falling behind on mortgage payments, delinquent property taxes, defaulting on other debts, or simply being unable to keep up with maintenance.
The second outcome is having to sell out for a lot less later to avoid the above, and after losing even more money in the property.
The third possibility is that owners can afford to hold on until property values rebound and buyers come back. Though based on historical data and real estate cycles, this could easily take another 14 years. Most don’t have that long. Nor want to suffer along for that long.
What Can You Do?
If you are in this situation, what are your options? What are the best moves to make?
1. Reduce Your Property Tax Assessment & Bill
Let Property Tax Adjusters, Ltd. help you get your taxes reduced. This will make it a lot more attractive to buyers, and more affordable for them.
2. Negotiate With Your Real Estate Agent
Negotiate better rates with real estate agents. Often all you have to do is to ask, and you can save thousands in commissions.
Alternatively, you can offer higher commission rates than competing buyers, and big time sensitive bonuses. This will ensure all agents are working hardest to sell your home, not your neighbors. Even if you give up another 2%, it’s better than losing 20% as property values slide.
3. Rent It Out
Unfortunately, due to stiff regulations and crippling rent controls, this has become a very risky and unattractive option for most NY property owners. Though if you must hold on, and need more money coming in, and do this in addition to the above two tips, it is an option.