03 Apr 08 A Changing Market

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Real estate experts are suggesting that the housing market around the country is less than two years away from a turnaround. Now I know that everyone has heard this before, but the statistics now show that this may be true. Recently released from the California Association of Realtors, are some facts that I think everyone should know about Orange County real estate buyers and sellers. With the current changes to the lending practices and available jobs continuing to increase, it is believed that the mortgage crisis may be coming to an end or at least beginning to stabilize in Orange County and the rest of the United States real estate market.

• The Federal Reserve has reduced its lending rate six times since September, and did so twice in January by 1.25 percentage points. On March 18 the Fed made another cut of three-quarters of a point.
• With more homes on the market for longer periods of time, buyers have more choices and leverage when choosing a home in today’s market.
• The foreclosure crisis has motivated the government to create more consumer protections against predatory lenders. This led to the drafting of several bills in the works that will make a significant difference in future lending.
• A temporary increase in the conforming loan limit means consumers will be able to borrow money at lower interest rates even for higher priced homes. Prior to the increase, the conforming loan limit was $417,000.

Tags: california association of realtors, California Real Estate, federal reserve, foreclosure, housing market, interest rate cut, Orange County real estate

05 Feb 08 Arizona Homes for Sale

A recent post I read on The Phoenix Real Estate Guy got me thinking about the many Arizona homes for sale and the home sellers in Arizona - maybe all over the nation. The post basically stated that some sellers are simply not motivated to sell their homes. My take on the post was that the sellers are pricing their properties too high for the current market and for no good reason. They could be holding on to what they wanted to sell the home for a year or so ago but it’s just not possible; the market won’t pay a premium for much of today’s real estate. I guess they may just have their home listed to see what happens and if this is the case, there is no problem with turning away all potential buyers.
This post is for the motivated sellers - here are some tips to help get your home sold:
Find a professional real estate agent that knows the industry and understands what you need to do to sell your home in this market.

• Price your home right. This doesn’t mean to price your home so low that it will make you lose thousands on the deal, but if you need to sell, sell your home for a price that the market will pay. Research recent comparable sales in your surrounding neighborhoods so that you know what price your home can sell for. If you’re not comfortable selling the home at the price the market will pay for it, get it off the market.

• Keep your home spotless. If you do get a visitor to your home make sure it’s clean and presentable. Make sure all renovations have already been completed and that the buyer knows they don’t have to walk into a home and start a 6-month project. In addition, buyers want to be able to picture their family living in the home so cleaning up some of the clutter e.g. family pictures and nick naks, will make for a good presentation.

• If your home is overpriced for good reason, justify it. Tell the buyer or the agent that you spent $20,000 on remodeling the home, and those homes in your area that have sold, did not. Help the buyer understand why they should pay more. If you have a great view, or a large lot with a pool, communicate these benefits to the interested party before you lose them.

• If you get a low ball offer take a minute to consider it. Will the thousands of dollars lost be lost anyway by waiting to sell at the higher price? Can you counteroffer something that will be of interest to both parties?

It’s not impossible to sell a home in today’s market. There are thousands of capable and willing buyers but they know it is deal time and they’re not willing to pay a premium price on a home they can find right down the street for less money. There are thousands of choices for home buyers and you need to convince every potential buyer that they’d be an absolute idiot if they didn’t make your home, their new home.

Tags: Arizona Homes For Sale, Arizona Real Estate, home buyers, home buying tips, Homes for Sale, housing market, phoenix real estate guy