What I've learned from 2007...
(pictured: some of my Buyers and Sellers homes sold in 2007)
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From the press the Real Estate market is getting, you'd think the world was coming to an end. Personal experience has taught me, when it comes to Real Estate expect the unexpected. A mild December and January kept the normally hibernating winter buyers out and looking, mid January in the down pouring rain and snow, I had an Open Houses attended by over 50 people! Granted, it was an exceptional home at a very affordable price, but previously, I had topped out Open House attendance at around 25 people. Spring and Summer arrived and things kept rolling... if you priced a house well and marketed it correctly, it would sell. The latter part of the year was slower, maybe buyers were burnt out, maybe they are waiting for this year, who knows... but if you are buying you are sometimes able to get a good house at a great price.
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Below are some of the things I have learned in 2007
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Buyers- Now is the time to buy, what are you waiting for? I read it all of the time, buyers are waiting for prices to bottom out. Why wait, get pre-approved by a reliable lender and know your buying power now. Get educated, if you are using an agent, they should be able to give you an opinion on the market value of a home, if it's over priced...don't be afraid to offer what you think it's worth. I have had at least 2 transactions this past year where we have submitted on offer on homes that were originally overpriced and sat on the market for over a year, and my buyers were able to get $30,000-$40,000 off of the current asking price! These were not million dollars homes, these were homes in the $200,000-$300,000 price range. This may not be the case for every home, but commit to the highest price you will pay for the home compared to what it's actual market value is and make the offer...you may have to walk away, but you will never know until you try. New Condo developments usually do not apply to this rule as a reduction in pricing will set a precedence for any future asking prices, but ask for credit for upgrades, condo fees, etc.
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Make sure you are buying a home that you can afford, that it is in a desirable area that someday a buyer will want to live when you resell and make sure you do not over improve your home for what you will be able to resell it for.
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Sellers- Have your agent walk through your home a month or more before you intend to list it. A good agent will be able to make suggestion on de-cluttering, moving furniture, repainting and repairs that need to be done...listen to them! Have a planned marketing strategy on how your home will be introduced to the market and make the deadlines. Pick the right agent the first time... go with your gut, if you think an agent is telling you what you want to hear and not telling you the truth, move on, more than likely, that agent will not be able to sell your home. The hardest thing for another agent to do is try to sell a home right after it was listed with another agent. You can have the best house on the street, but if it is overpriced, it will turn the buyers who can afford it off and never reach it's target buyer. Do the proper updating. Buyers have never been this educated, HGTV dedicates approx 24 hours a day informing buyers that the value of the home is seen by having updated kitchens and baths. If you do not have an updated home, your price will need to reflect it.
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There are basically 4 things will more than likely sell your home...
price, presentation, location and marketing if one of those pieces is missing,
you're in for a harsh wake up call and if you sell the home, it will most likely be for a lot less than it's potential market value.
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