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The Downward Spiral

Being positive does not mean not understanding the facts. You have to know what is going on before you can do something about it. Let’s take a look at the real estate market.

  • Hundreds of firms are opening up which offer, for a fee, to help you with your short sale (if you owe more than your home is worth) or will buy your property at a greatly reduced price if you can’t afford the payments.
  • Real Estate agents are telling prospective buyers that they can get them a better bargain than another agent.
  • Sellers who can well afford a mortgage payment, but their house is worth less that the mortgage amount, are walking away from their homes. The banks, in most cases, don’t go after the deficit.
  • Appraisers are using the short sales and lender owned sales as the comps for their value, thus further driving down the price of homes.
  • Home sellers are not smart enough to hire an agent that will work for a higher price instead of just a commission check

As a result of these and other factors,  home values are still falling. So what does that mean in the long run?

  • In many sections of our Nation, home values have not yet hit bottom.
  • This market is great for those that are looking to buy a home. (low interest rates and great buys)
  • The home flippers are back in the market place.

The other major consequence is that for many people, their home equity was a major part of their retirement funds. Unless people rethink their lifestyle and make adjustments so that they can save for and find other retirement fund sources, there will be another “issue” to be faced as many “baby boomers” are approaching retirement with less funds than the previous generation.

Budgeting and multiple sources of income is now a reality for many of us.


If you worry about what might be, and wonder what might have been, you will ignore what is!

Have a great day!

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