I do not think unless flipping no matter what the economic situation people do not want to sell there homes. But yes yoiu are right . When they bought and how much they paid is very very important in todays climate

Good advise, I also check to see if there are any liens against the property and code enforcement issues. what a surprise these can be.

Tell me about surprises!  I just found out from a buyers agent the other day that one of my properties may be in foreclosure, but guess what, MY SELLERS NEVER TOLD ME!

Michael, this is good advice, and it applies to every listing for whatever reason the move.   If they are able to pay their mortgage, if it's upside down, they could still have issues coming up with the difference at settlement. 

Do your homework, hey it may not even be their house?

DARIN, NOW THAT WOULD BE FUNNY!  You are right though, I always wonder about this when I am meeting with people for the first time, especially when they don't occupy the home as their principal residence.  However, we can only do so much homework, the title company has to do the rest!

Our first meeting with a potential seller is always to find out their motivation! Sometimes they don't even know how dire their situation is until we investigate. There is alot more to real estate than planting a sign in the yard and waiting for a buyer. We have resources we need to apply for every listing.

As for short sales, some are easier than others because there are banks and reo companies that will work with you to help your seller out of a bad situation. Real estate isn't always easy!

It is prudent to do your research prior to every listing you may have.  After researching the property you may not want the listing.   There are other reasons you may want to walk away from a listing... like disagreements on pricing, etc. 

Michael, I agree, why would anyone want to sell their property in a down market unless they had to sell. It definitely pays for the REALTOR® to do their due diligence. Thanks.

There are also situations where people can still make money and move on to what they want to do. If they paid $200,000   and  4 years ago it was worth $800,000 but they can sell it today for $600,000  they are not losing 200 they are making 400.  That is a real example so it is possible. remember real estate is local and every deal is different.

CAREN, I totally agree that real estate is NOT easy and it takes A LOT of work to get it from the listing appointment to the settlement table!

JON, I tell every seller that I meet with that I do NOT take every listing that I meet with.  However, I try to do as much research as possible and if I think I shouldn't take it, I usually try not to even set up an appointment as it may be a waste of time (sometimes its not though becuase they decide that they need to wait a year to sell and list with me in 12 months)!

MICHAEL, Thanks for your continued quality comments on my blog posts!

BARRY, While I agree that there are always those incredible exceptions, but to quadruple what you paid 4 years ago, I haven't seen that in my market yet?  I have seen double and close to triple, but homes that were worth $200,000 4 years ago definitely are not selling for more than $425,000 around me!

Michael  Look at it again. I said it was worth $800,000 4 years ago not that they bought 4 yrs ago. In my exact case they paid 200,000 15 years ago. It was worth 800,000 4 yrs ago and now $600,000.

I will say that is not the majority of the market but it is true in many, many cases. We are always surprised by how many people do NOT move every 7 yrs. Many have been in their homes 20 yrs or more and have huge gains. My point is that just because your home is worth less today than it was a couple of yrs ago does not mean you have a loss on your investment.

Sorry I was not more clear.

WHY on earth would someone want to be selling a home in this current market if they absolutely didn't have to sell?

Lot's of reasons - let's see - some people are tired of having an investment somewhere.  Some people decide to purchase something else to invest in.  Others decide that the home they are in is too small and want to upgrade.  Others are simply ready to move.  Others have bought, remodeled and now want to sell...

All the same reasons to sell now as 4 years ago.  It is absolutely impossible to "time the market" - therefore you should "time your life" - in other words, do things that work for your life, no matter what the market is like.

Michael:  Out here in Prince William County, short sales and bank owned homes are the majority of what's out there to buy.  That's how I became a short sale agent....no choice. 

It's a different market and one we hope to see change quickly here in NC...

We definitely have to do our homework. Is there any liens on the property? Check the tax records to see if their are the owners -You'll be surprised. Somebody said something about the code enforcement issues.  Great post.