| My Thoughts . . . . * * * Is it the “Right Time” to Buy ? ABSOLUTELY - Your purchasing power and choices of homes has never been better. * * * Is it the “Right Time” to Sell ? Maybe it is. . . Maybe it’s not. . . Really depends on your needs and goals. I am frequently asked “How is the Market Doing?” and / or “Is this a good time for me to sell?”. Wow, talk about a tough question!!! Let’s try this answer: The market is doing very well, especially if you are a buyer. Therefore even the most disillusioned must admit it is a decent market for sellers as well – because there ARE buyers out there and property IS selling. Admittedly not a good time for profit taking or trying to sell property that is not in great condition – but certainly not a horrible state of affairs either. Yes, the pace of sales and overall prices are both down compared to recent years. But the market is far from grinding to a halt. There is always change in someone’s life. Change drives real estate transactions as people need larger homes, or find it is time to down-size. Changes such as marriage, divorce, career changes, job relocations, a desire to move closer to family . . . the list goes on and on. So while it remains a fact that the market is relatively slow, there is always some level of activity on both sides of the fence. I think most everyone will agree that market values & prices in our world are driven by the “law of supply and demand”. In our real estate world supply is very high and demand is relatively low, therefore prices have dropped over the past 2 years. But I will submit that in real estate there is a 3rd and equally important ingredient in the “law” and it is the Cost of Money. For anyone wanting or needing to sell I think it is good to be thankful that the cost of money is so very low. If interest rates were not so close to all time lows can you imagine how much the demand factor would shrink? What if 30 year fixed interest rates were 10% - 12% instead of about 6%? People would still WANT to buy a home but the true demand of “ready, willing and ABLE” buyers would be drastically smaller and prices would suffer proportionately. But back to the question, is it the “Right Time” for YOU to sell? Perhaps it is - dependent upon what your plans & goals are. If you contemplate selling investment property and taking your profits to reinvest outside of real estate this is probably not the best time to sell, unless you’ve come upon a great investment idea. On the other hand if you ponder selling investment property to reinvest in other income producing real estate or selling your primary home to buy another, this may actually be a great time to do so. The fact remains that we are in a very strong buyers’ market. The impact of this on you as a seller will no doubt mean your property will sell for less than it would have a year ago, possibly less than it would a year from now, and will take time to sell. However, if you are selling in order to buy another property, the market is favorable in three aspects: 1) the price you will pay today for replacement property is less than it was in the past or will likely be in the future (kind of in balance with the lower price you might be able to sell for); 2) interest rates are nearly as low as they have ever been; and 3) your array of choices as a buyer are far greater today than many times in the past or probably will be in the future. If you wait to sell for top dollar so you can buy your “dream” property - you can be sure you will pay top dollar for that property, and have far less choices from which to find that property as you will then be buying in a “Sellers’ Market”. Interest rates remain low so purchasing power remains high. How long will rates stay low? Nobody knows. To me the answer is the same as to the other common question – “Has the market bottomed out yet in terms of prices?” Nobody knows and we will only know that we hit the bottom when we are looking in the rear-view mirror while rates and prices are rising. |
| Some Other Thoughts |
| John R. Hastings Associate Broker Licensed in Arizona |
| Buying in a Buyer’s Market - Excerpts from “The Buyer’s Advantage”, Kiplinger's Personal Finance • Build a bid. When you're a buyer and you find something you like, your agent should provide you with relevant "comps"--comparable homes that have sold within the past few months--and insights about the property you're interested in. How many times and how long has the house been listed? Has the price been reduced? How does its history compare with that of other recently sold homes? A house that's been languishing may have problems--or an unmotivated seller. • When you make an offer, be aggressive but realistic. To get a feel for what's happening with prices in your target area, ask your agent for the average percentage of listing price that comparable houses have sold for recently. Then check the comps your agent provided. How much less than (or more than) the asking price did they sell for? Average those numbers and subtract that figure from the seller's list price to come up with a starting point. Depending on the desirability of the property, you may want to increase your offer--or decrease it to account for a property's warts. • If the price you agreed to is more than the house appraises for, you can bail out of the deal if you have an appraisal contingency. Otherwise, if the lender's appraisal values the property at less than the purchase price, you'll be forced to ante up cash to make up the difference. Or you could agree to split the difference with the seller. • Finally, include an inspection contingency. In overheated markets, buyers were waiving home inspections until recently. Now that those markets have cooled, they're returning from the inspection with a list of items they want repaired. • No matter where you shop, get preapproved for a mortgage loan before making your first offer. A letter of commitment from a lender will boost your credibility with nervous sellers. Excerpts from: Patricia Mertz Esswein, CHRISTINE M. VARNER, ELIZABETH ODY, JESSICA ANDERSON. (2007, March). The Buyer's Advantage. Kiplinger's Personal Finance, 61(3), 80-84. Retrieved September 16, 2007, from ABI/INFORM Research database. (Document ID: 1217239861). |
| SELLING IN ANY MARKET - Preparing Your Home EXTERIOR ITEMS - - - FIRST IMPRESSIONS MEAN EVERYTHING �� Sweep the front porch, patio, deck, and garage �� Clean and polish/repaint the front door �� Plant colorful flowers, especially near the front door �� Keep the lawn mowed, watered, landscaping trimmed, and weeds pulled �� Repaint trim if paint is chipping INTERIOR ITEMS - - - GET CLEAN! BE COMPETITIVE �� Clean and dust all surfaces including TV, ceiling fan blades, plant shelves, return air ducts, etc �� Wipe down baseboards and thoroughly vacuum all rooms �� Use furniture oil or polish to cover up scratches and revive wood trim, paneling, etc �� Neutralize! Repaint or replace carpet if needed; your choice of color may not be the preference of the buyer �� Clean sinks, mirrors, and faucets in the kitchen and baths so they shine; keep clean towels and empty trash baskets. �� Caulk around tubs and sinks; re-grout if necessary �� Wash all glass and crystal light fixtures �� Straighten up, de-clutter, and organize closets. Closets should be less than 50% filled to make them most appealing to the buyer �� De-clutter kitchen and kitchen counters. Buyers value kitchen space. �� Pre-pack – remove as much “stuff” as possible. �� Replace torn screens and all windows with broken window seals PREPARING FOR A SHOWING - - - IT’S SHOWTIME! �� Turn on ALL lights including closets, garage, and even range hood �� Open all curtains and blinds �� Play easy listening music �� Set the dining room table as if serving a meal �� Adjust the A/C or heat to a comfortable temperature �� Turn down the volume on your answering machine �� Don’t run appliances during showings �� Take pets with you or put them where they wont interfere with showings �� Clean litter boxes �� It is best to leave your home during showings |
| Here is the best advice going for Buyers . . . >> Click Here - To review and download the Arizona Association of REALTORS® BUYER ADVISORY - This document really has great information for all buyers, whether first timers or those very experienced in the game. |
Personal Opinions, and some Valuable Tips