Whether you are a Seller or a Buyer, in the current market, you need a Realtor who can be a chameleon.
There is a significant difference between the selling habits, buying habits, communication methods and styles, wants and needs, etc. of the different age groups who are buying and selling real estate. And, often, a transaction involves a Seller and a Buyer from different generations.
There is a major difference between Gen Y (also referred to as the “Millennials”), Gen X, Baby Boomers and seniors (some of whom are referred to as the “Greatest Generation”).
For a Realtor to be “full service,” he/she needs to incorporate a variety of the high tech & low tech methods in his/her business arsenal. This means your Realtor needs to employ interactive Web sites, blogging, listing syndication, text messaging, e-mail (with and without scanned documents), voicemail, faxing, overnight mail, snail mail, personal delivery, dealing with relatives from multiple generations, and availability 7 days a week.
Wish you could invest in real estate now, while the market is hot with many properties at all time lows? But, maybe you think you don’t have enough cash available.
Think again, if you have retirement money invested in IRAs.
The IRS has rules & regulations that provide for investment in real estate through self- directed IRAs. You can invest in a house, duplex, apartment building, etc., depending on the amount of your investment moneys.
You will need a financial advisor, who has the training, credentials, and licensing to enable him/her to make sure your investment complies with all of the applicable IRS rules & regulations.
You will also need a Realtor® to assist you in identifying properties you may want to purchase; and, who is willing to work with your financial advisor as well.
The Senate and House continue to work on the economic stimulus plan that includes action to support the housing market. There is a critical need for a resolution of the housing crisis as a main priority for the Country's recovery from the U.S. economic recession.
For Buyers, there is plenty of mortgage money available, both FHA & conventional. Rates have increased somewhat. However, housing prices remain low. There are reports that Ohio housing prices may have hit their lowest point in 2009 & may begin to rise in 2010. So, 2009 continues to be a wonderful time to buy, especially for first time home buyers.
For Buyers who do not have the down payment required by lenders, there is positive information that some of the non-profit organizations who have helped first-time home buyers with down payment moneys may receive funding for that assistance again this year. Stay tuned for further information as it becomes available.
For Sellers, homes will sell when they are priced to sell relative to each given home's condition, location, competitive homes on the market & comparative home sales in the last 3 months. Remember that the appraisal by the Buyer's lender determines the Lending Value, which is the Market Price for a given transaction. Sellers need to be prepared to sign an Amendment to the Purchase Agreement to adjust the original Purchase Price to the Market Price as determined by the lenders' appraisals, if the Sellers want the sale to proceed. Realistic list prices at the time of listing & purchase prices when a Purchase Contract is signed will help avoid lender appraisal surprises.
OPEN HOUSES ARE IMPORTANT FOR SELLERS IN A BUYERS’ MARKET
Realtors® used to quote the accepted statistic that only two percent (2%) of homes sell from Open Houses. The thought was that Realtors® used Open Houses to find new Buyer clients to sell other homes on the market.
Flash forward to the Buyers’ Market we are in today…. We have a glut of homes for sale on the market. Buyers are like “kids in a candy store” looking at as many homes as they can, both by themselves at Open Houses and with Realtors®. Sellers need to have their homes “stand out from the crowd.” One important way to do this is for Sellers to ask their Listing Realtors® to hold Open Houses. Some Buyers won’t contact their Realtors® to view a home until they have previewed it at an Open House. As Buyers’ Agents, we encourage our Buyers to view as many Open Houses as they can when we aren’t with them.
Fact is, in a Buyers’ Market, Sellers need to use every avenue possible to reach Buyers. Open Houses have become an important tool in each Seller’s Marketing Plan.
The current Buyers’ market makes it essential for Sellers to correctly price their homes to sell. The listing price must reflect the condition of Sellers’ homes and market value of their homes.
Realtors® can help Sellers price their homes to sell by:
1.) Recommending a professional staging consultation for the Sellers with a home staging professional. If the Realtor® is an Accredited Staging Professional (referred to as an “ASP”), the Realtor® may provide the staging services himself. Otherwise, the Realtor® may recommend a staging consultation with a staging professional. This can be an add-on service paid by the Seller or a Realtor® paid basic marketing service. The consultation will educate Sellers on how the condition of their homes may affect the market price of their homes and what steps can be taken to improve the condition of their homes and ways the condition can be improved.; and
2.) Recommending a residential home appraisal prepared by an independent Licensed Appraiser. This can be an add-on service paid by the Seller or a Realtor® paid basic marketing service a Realtor® can provide to validate the Realtor’s® comparative market analysis. In addition, the appraisal will give Sellers an independent, professional viewpoint of the Current Market Value of their homes. The Licensed Appraiser will also explain how he determined the Current Market Value, such as using the same criteria a mortgage lender’s appraiser will use to make a loan to a Buyer. Appraisers will take into consideration various criteria such as home condition, location, market conditions, recent comparable home sales prices, concessions Sellers may have made to sell their homes as “products for sale”. It is also helpful for the Licensed Appraiser to meet with Sellers after the appraiser is made. The Licensed Appraiser can deliver the written appraisal in person and meet with Sellers to explain the appraisal and answer any questions the Sellers may have.
To help Sellers adjust to a Buyers’ market, Realtors® need to make additional, independent services available to Sellers, service providers who can make assessments and give advice to provide Sellers with information they need to set a reasonable listing price, which can shorten the market days Sellers’ homes remain on the market.
Daily, we're being bombarded by bad real estate news from the media - - TV, talk radio, print, & internet. Real estate is a great fill-in when the media sources run out of major stories.
Let's look at some positive real estate news:
1. Interest rates remain at record lows.
2. There are many legitimate, specialized loan programs for first-time buyers, to make homes affordable. And, buying a home during a buyers' market means that owning a home may be more cost effective than renting.
3. If you are a buyer or a seller, remember that the the list price & terms are always negotiable; make the transaction a win-win.
4. If you are selling a home & intend to buy another home, do the math. Yes, selling prices, in general, are lower than they have been in recent years. However, you'll pay a lower sales commission in terms of dollars & certain related closing costs. And, the sales proceeds you receive should, in general, help you buy a home at a lower price than you would have in recent years, because of the "domino effect."
5. If you are a seller, don't shop for a real estate agent who will list your home at a price you dictate, unless you want to continue to own your home. Instead, keep an open mind. Have your real estate agent show you not only the sales price of comparable homes that have recently sold; but, also, the listing prices of comparable homes currently on the market for sale. Your real estate agent should, also, be willing to schedule appointments for you to view your competition's condition, so you can position your listing price to gain a market advantage. This will help you sell your home within a reasonable time given your market.
6. If you are selling a home, make sure you prepare it for sale. Preparing your home for sale means turning it into a "product" for sale. The buzz word for this "staging" a home. In a buyers' market, your home needs to be move-in ready. Buyers look for the best staged home in their price range. There are real estate agents who are also Accredited Staging Professionals ("ASP"). Consider retaining one of them or an independent ASP. No matter the listing price range of your home, it will sell more quickly if it is staged well. The condition of your home is a major factor in the time your home stays on the market and the price buyers are willing to offer.
If you are reading this blog, you are either thinking of buying your first home or have decided you want to buy. It is a great time to buy, with mortgage loan interest rates still at record lows.
In Northeast Ohio, we are in a Buyer's Market, which means that there are more homes for sale than buyers to buy them. In a Buyer's Market, you have many homes to choose from in every price range. And, with a Buyers' Agent (a real estate who represents you), you can visit many homes at one time, that Buyers' Agent can help you analyze the pluses and minuses of each home, and that Buyers' Agent can negotiate aggressively for the best terms possible when you are ready to proceed with a purchase contract. And, best of all, the Sellers pay the fee for your Buyers' Agent.
A specialty of Team Pribisko (Steve & Pat Pribisko) is representing First-time Home Buyers as Buyers' Agents. We will assist you in obtaining a loan approval, so you know what home price range you can comfortably afford. Then, we discuss in what neighborhoods you want look for a home and what you must have and prefer to have in the home you want to buy. After that, we send you information, by e-mail, of homes that meet your specific criteria. You select homes that you want to view and we set up appointments to show you the homes you select. We are available by cell phone 24/7. And, we are "no pressure" Buyers' Agents - - we will show homes to you until you find the home that fits your criteria.
Please contact Team Pribisko through our website www.AgentsWhoEarnYourTrust.com , email at pribisko@AgentsWhoEarnYourTrust.com, or by cell phone at 440-463-1726 (Steve) or 440-725-0910 (Pat).