I had a call a couple of days ago from a potential client who knew that I was a seniors' real estate specialist. He has a house that he needs to sell that is located in Northeast San Jose, and I promised to check out the "state of the market" in his neighborhood. The news wasn't good. A year ago, homes similar to his were moving quickly, and selling slightly over the listed price, in the $700,000 range. These were in good condition, without any real updating.
Now homes in the same tract are selling only if they have have extensive (and expensive) remodeling...granite in the kitchen, new plumbing and roofs, dual pane windows, etc. Even more upsetting are the prices, now in the $625,000 to $650,000 range, and often with credits offered to buyers. Selling time has been three months or more, and several homes have been withdrawn from the market.
The homeowner who called me lives on a fixed income, and is trapped in an interest-only loan with payments he can't handle. His house needs a good deal of work that he can't afford to do. My advice...clean up the landscaping, and clear out excess clutter and oversized furniture to help the house appear as light and open as possible...and keep trying to find renters if he feels he can't afford to sell at these prices.
Economists are estimating that a turnaround won't happen until 2009.
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