Real Estate in 2009 – real estate dreams that have come true vs real estate reality. We all like to see our dreams come true!  Let’s use two examples:  First, a young couple as first time home buyers completing a successful escrow.  They have finished signing the last paper, their transaction has funded and recorded and is closed and the home belongs to them.  The second example is a home owner who is able to sell their home for a  purchase price that exceeds the amount they paid for it so they have a little to put down on the next home they are buying.  Ah, real estate dreams -  how we like them to come true!

Real estate reality: 2009 has been a challenging year for many a home owner and for many a buyer.  With the downturn in the economy many owners have found the equity they thought they had in their  home is no longer there.  If they borrowed against that equity, then they may owe more on their home than it would sell for in today’s market.  Then, if the company they worked for was downsized or they were laid off, they find themselves between a rock and a hard place and face a short sale, a foreclosure or a bankruptcy.   Such is the plight of many home owners today.  They never “dreamed” they would be in a short sale, foreclosure or a bankruptcy situation.

And what about the first time home buyer?  Well, they’ve had some help with lower home prices, the Federal Tax Credit and State Credit.  However, many of them have put offers on “short sales” (where more money is owed on the property than the current market price will bear).  They find themselves waiting several months to a year to find out if the “third party”, the lender, will approve their offer.  By that time, market conditions have changed even more, interest rates have changed and loan approval is more difficult.  Now, they don’t know if they can get the home due to their loan.

First time home buyers and home owners will find their real estate journey to be a smoother one if they work with a professional real estate agent who knows current market conditions who will guide them to understand the difference between reality vs dreaming in the real estate market.