When working with clients who plan to purchase a home while attempting to sell their current one, it is imperative to educate them on how to be freed from negative equity. As a real estate professional, it is your job to guide your clients in the direction that would serve to be the most beneficial and rewarding in the long run. According to Steve Cook, managing editor of Real Estate Economy Watch, the year began with inventories only 2% above where they were a year ago; the stage could be set for a repeat of last year’s dramatic inventory shortages if sellers don’t feel that this is a good time to sell.
If your client is unsure of the equity they have in their current home, direct them to a Home Equity Calculator, which will determine an amount based on factors, such as market value of the home, current mortgage balance, and marketability. Continue reading