Q. Tom, in addition to short sale and bank-owned property sales in my neighborhood, there are also several ‘divorce’ sale situations where it seems the sellers are ‘giving the home away’. My impression is that ‘divorce’ sales drive down the values on my street more than anything else. Is that true?
I understand how you feel but I can assure you that ‘divorce’ sales do not significantly depress values in any given neighborhood. There are a couple things going on here; first, divorcing sellers consistently account for approximately 15% of the available homes in any market – good, bad or otherwise.
Second, regardless of the seller’s personal situation, there is a ‘market price’ for every property here in the Diablo Valley based on normal buyer demand. Just because two people are getting divorced doesn’t mean that the home is automatically worth less; divorcing sellers are generally highly motivated but not desperate for a quick sale. Third, there is however a higher probability that these homes have not been maintained optimally … remember, when people are happy with themselves and each other, it is usually reflected in how they care, maintain & improve their homes. Poor condition is a major reason for lower pricing when a home comes to the market.
Lastly, I believe my industry can be a bit more sensitive and strategic with regard to representing divorcing sellers. I remind all my real estate colleagues not only of the personal nature of such information but also that openly disclosing a sale as a ‘divorce situation’ does nothing to enhance the negotiating leverage of the sellers. As a rule, I don’t disclose that sellers are divorcing unless they approve of such or if the release of the information benefits them in some way. Instead I simply state that ‘they are moving locally’.
Q. Is late summer/early fall a good time to sell a home?
It certainly can be. After the typically strong spring and early summer markets, the months of August, September and October are historically robust times for selling and buying. The traditional ‘buy before school starts’ market window has closed but the ‘sell before the holidays’ window is wide open for about a 90 day time period starting in late summer. Keep in mind that no matter when you sell your home a successful outcome is always dependent on location, condition, pricing, marketing and the skill of your agent.
Q. Tom, as either a seller or buyer, do I actually have to be physically present here locally on the close of escrow day in order to finalize the sale?
Nope! In fact, a great many sellers & buyers are not available on the closing day due to work, travel or other scheduling issues. In our area, the principles (seller & buyer) in a transaction typically sign estimated closing documents somewhere between two to seven days in advance of the actual closing then both receive a final statement on the closing day. Documents can be signed in person at a local title & escrow company or the papers can be overnighted/emailed to the principle to be signed in the presence of a notary anywhere in the world.
‘Electronic signature’ technology is also now emerging as a convenient way of allowing important documents to be legally ‘signed’ on a computer or smart phone without having to print out, sign, scan & fax back. All of which makes it easier on buyers and sellers and precludes them from being ‘here’ on the actual closing day unless, of course, they are moving into or out of the home.
