Re-Blog of a really great article
It seems the transition is complete. In a recent survey by Redfin, 82% of agents described now as a “good time to sell,” while only 57% described now as “a good time to buy.”
Let’s back up to the third quarter of 2012, when 54% of the agents polled considered it a good time to sell, but 75% called it a good time to buy.
This complete ‘180’ in the housing markets can only be backed by dangerously low inventory, prices that continue to appreciate and low interest rates pushing buyers to buy now.
I recently wrote about a house my husband and I put an offer in on. I felt fairly confident about our offer and we’d managed to tour the house less than 24 hours after it had gone on the market, putting our offer in the same day. Unfortunately, within a day, four other offers were put in and the seller chose a higher one.
As a buyer, this is discouraging. It’s frustrating to know there is zero ‘wiggle room’ when it comes to negotiations and often homes are selling above the appraisal value.
On the other hand, I can only imagine sellers are riding high and feeling good, as multiple offers pour in on their homes within a day. In fact, 98% of agents surveyed by Redfin agreed that sellers are becoming more confident about the market.
With that in mind, 83% of agents agree that buyers also are becoming more confident, so it’s not totally a lost cause for those of us trying to find a home.
Working in this industry, I can’t tell you how many people I’ve heard say “the time to buy is now.” Well, as a buyer (often frustrated with this sellers’ market), I can tell you that the time to sell is now as well.
Posted by: RET Staff
In March, roughly one-third of all sales were cash, meaning a large number of buyers are not dependent on lender financing, the sale of their existing home or a settlement that might be 45 to 60 days in the future.
Instead, they can act quickly and, in many cases, seek properties which can be bought today and occupied tomorrow.
To ready a home for sale in today’s marketplace, Forsythe says owners should consider six basic keys to selling success.
Six Keys to Success
1) Curb appeal counts. Most home buyers want homes which look great from the outside. It’s not just a question of curb appeal — it’s about perception. If a home looks good from the street, it probably means the property is ready for a new occupant without a lot of cost or hassle.
Buyers tend to pass on a home that doesn’t appeal to them from the street–not even bothering to look inside. An experienced local REALTOR® can show you how to generate the most curb appeal with the least cost.
2) A clutter-free home. With the new emphasis on cash sales and speed, owners must show homes which are free and clear of clutter. A clutter-free home will make interior spaces look larger and eliminates the need to get rid of stuff when you are in the throes of moving. It makes sense to donate or reduce clutter before a home is placed on the market — not only as a sales tactic, but also as a practical step toward relocation.
3) Working condition. Having your home’s systems in good mechanical condition is an advantage in today’s market. Most distressed homes can’t compete when it comes to such basics as working heating, plumbing and air-conditioning. Properties that can readily pass a professional home inspection are often easier to finance, and are generally more appealing to buyers who don’t want to face the unknown costs and delays sometimes associated with major renovations.
4) List and negotiate properly. According to Forsythe, “A seasoned REALTOR® can show owners how best to market a particular home according to such factors as location, price, condition and financing. Owners want to work with us because our experience brings value and confidence to a transaction, factors that are enormously important in a changing marketplace.”
5) Seek prequalified buyers. While many sales may be for cash, the majority still require financing. It would be frustrating to enter into a sales contract with a potential buyer who ultimately cannot obtain financing to purchase your home — meaning you have lost time — and potentially money — and then you have to start over. When a home is shown by appointment, the buyer should have a pre-qualification letter in hand.
Such letters from lenders are not binding, but at least show that the purchaser sat down with a loan officer and has some realistic sense of what he or she can reasonably afford.
6) Distressed properties. Roughly 30 percent of today’s home sales involve “distressed” properties — a term which includes short sales and foreclosed properties owned by lenders. You need to consider the distressed properties in your neighborhood when pricing and marketing your home. These properties typically sell at discount, especially in major foreclosure centers and sometimes require substantial repair and rehabilitation.
“Home sellers can compete with these offerings,” according to Forsythe. “There’s no question that a large number of distressed properties in a local market will impact prices, but price is not the only factor buyers consider. While distressed homes work for some purchasers, they’re not the right choice for buyers who want homes that offer move-in condition — homes in better shape that can often command higher prices.”
While the housing market is just in the beginning stages of a recovery, it’s still possible to successfully sell your home by making sure you’re catering to the kind of buyers in the market today, and by making sure that you — and your home — are ready to move as quickly as these buyers are.
To view the original article, visit RISMedia.com.
All-cash transactions are becoming the common way for investors to buy investment and vacation homes with roughly half of all investment buyers paying cash in 2011 and 42 percent of vacation home buyers paying cash. Dr. Yun points to tight credit conditions for the decline in owner-occupant purchases.
Half of all investment home purchases in 2011 were distressed homes, as were 39 percent of vacation homes. The median investment home price in 2011 was $100,000, up 6.4 percent over the year, while the median vacation home price was $121,300, down 19.1 percent.
“Clearly we’re looking at investors with financial resources who see real estate as a good investment and who aren’t hesitant to use cash,” Dr. Yun said.
Dr. Yun also pointed out that for investment and vacation home buyers that used mortgage financing, the median downpayment was 27 percent in 2011.