I am sure you are reading all the real estate headlines regarding foreclosures,
changes in the mortgage industry and a slow down in real estate sales. All of
these things are happening. The sky isn't falling and the world isn't ending. However
it is important not to underestimate the fallout from the recent turn of events.
There is some good news buried in all of the bad, however there is every
indication that home prices will continue to soften simply based on the new
reality that fewer people are going to qualify for mortgage loans and the money
they are borrowing is more expensive.
That being said I would like share a tag line from an insurance commercial that ran not too long ago...
1. Price is the most important factor when it comes to
selling your home in this market. No
amount of marketing, advertising, or open houses is going to cause an overpriced
home to sell. And most of the recent sales are no longer a good
indication of the value of your home as we are in a brand new real estate market
where new price levels have yet to be established.
2. The sellers who
are most successful in getting their home sold in this current environment are
the sellers who are getting ahead of the market not lagging behind the market.
What you would view as a very disappointing sales price today MAY look like an
incredible price six months from now. That is how quickly things can change. The
most common mistake a seller can make in a market like this is to chase the
market down. My fear is that you spend the next few months listed too high and
then when you decide to lower your price the market has moved again and you end
up still overpriced and unsold. This pattern of chasing the market down repeated
itself frequently in the early to mid 90's as sellers never really accepted the
idea that prices were falling until it was too late.
3. If you are saying to yourself you will only sell your home at a certain price.... you are not a real seller in today's market. Right now buyers are not interested in what you need in order to get your home sold. They are also reading the newspapers everyday and they have a big fear that the home they buy today will be worth less a year from now. Therefore today's buyers are very price sensitive and they are making offers with the idea that prices will be lower going forward.
4. Being a seller at this moment in time is not for the faint of heart. The only people who should have their homes listed for sale are those sellers who truly have to sell their home now. There is no point in "testing" the market to see what you can get. The name of the game right now is equity preservation. The equity in most homes is eroding on a daily basis. In some areas this loss is very slight. In other areas the erosion of property values is very noticeable. So far the high end of the market is feeling the least effect from all the changes that are taking place in the world of real estate. On the other hand, lower end properties are feeling the biggest impact from these changes. Just keep in mind no property is immune from what is taking place at this time. All properties are going to be impacted as time goes on.
Sincerely,
Steve Lewis
For
any questions call or email me directly