Why Aren’t Buyers Buying? Part 2 of a 6 Part Series.

Click here to read part 1

Second Reason: Anticipating the Shadow Inventory. The term Shadow Inventory indicates the list of homes that banks are in the process of foreclosing on or homes that are about to be foreclosed on. Other homes that could be on this shadow list are the single family homes and condos that builders that have decided, for whatever reason, not to sell yet. Currently, some estimates indicate 2 to 8 million homes are on this shadow list in the US citing that about 2 million loans are in foreclosure, and another 2.4 million borrowers have missed at least 90 days of mortgage payments. For a complete list of REO properties currently on the market in the state of New Hampshire, visit www.verani.com. Buyers are sometimes hesitant to commit to one home for fear that the banks will release “the best home ever” and it would be too late for them to buy. (But if the right home comes up – get it! Another one like it may never be around again.) These shadow inventory homes that are eventually released to the market could be finer and better priced than what they have committed to buy or have already bought.

What the savvy seller can do to overcome this: Work with an agent that can deliberately stage your home or individual rooms. Remember, perception is reality. Also, small budgeted repairs or inexpensive upgrades will help increase the desirability of your home and help it stand out from the rest. And of course, make sure your home is priced right in comparison with the other homes for sale in your area. Even pricing your home at a little less than the going rate will give buyers the knowledge that they are getting more “bang for their buck”. Some real estate companies, like Prudential Verani Realty, will offer to do a free CMA for your home, to see where you stand when it come to pricing your home realistically in today’s market.