Chasing The Market
The real estate market is quite unique at this particular point in time. History tells us that even though we have seen ups and downs, we just have not experienced a market like this. Increases and decreases in property values occur all the time just like the stock market. Generally speaking, over the long haul the value goes up. So what makes this market so unique?
What Happened To the Mortgages?
Up until several months ago there was a mortgage program for just about everyone. Then came the sub-prime market shake up and loan programs were reduced to some of the most basic. On top of that, investors tightened up the qualification parameters for applicants. Many first time buyers utilized 100% financing programs which went away. That breathed new life into the down payment assistance programs, which congress may soon do away with. The number of buyers who can qualify for a mortgage in today’s market has declined which therefore creates a negative impact.
Price Your Home Right
Pricing a home correctly when it first goes on the market is more important now than ever. In the past sellers market, when the market was appreciating and mortgage programs followed freely, it was an accepted practice to price your home slightly above value to allow some negotiating room. In today’s buyer’s market this just is not the case. As a seller you don’t want to put yourself in the position of “Chasing the Market”. So how do you avoid this pitfall? The easiest and most comprehensive way is to have your home appraised by an independent third party who is a licensed appraiser.
Help Buyers Buy Your Home
What other factors influence a buyer’s decision of whether or not to make an offer on your home? The main ones are appearance, appearance and appearance. Make sure that the exterior is inviting, remember you only get one chance to make a good first impression. Removing clutter and having clean carpets along with fresh paint will help tremendously. If your home is not in show ready condition and properly priced it is almost certain that you will be chasing the market instead of having the market chase you!
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Mack
Truer words were never spoken about the current real estate market. The buyers who are qualified have a lot of choice in homes. Sellers need to hit the market with a home in top condition and price correctly.
A few months back first time homebuyer programs were helping to move some homes, but with recent changes in financing, it is becoming increasingly more difficult to find loan products.
Keep educating