Today's Housing Market StrategiesBuyers are in the Drivers Seat. The long anticipated slowdown in the housing market appears to have arrived. In my own opinion, the market has settled and the applications are on their way up! I’ve spoken to many other Mortgage Planners and their saying the same thing. More applications and closings mean more home sales. Of course, gains or declines in home prices vary widely from one region of the country to another, as well as within broad regions. Areas that saw the largest and fastest rates of appreciation, like along the coastlines, are generally seeing the most drastic slowdowns or even declines in home values, while some areas where appreciation has been slower continue to experience at least moderate appreciation.

From what I’ve seen I would say that home prices are flat in my area, they haven’t depreciated so much as they haven’t seen much appreciation. I’m talking about Sarasota, Florida where we saw some of the highest appreciation in the country the last couple of years.

In the new environment, what are some strategies for homebuyers and home sellers? The first thing to keep in mind is that, for th emost part, things have shifted from a seller’s market into a buyer’s market. (is that a bad thing? NO) The main thing this means for sellers is that they must be realistic when pricing their homes. How many people did you see asking for the moon last year and then buyers would have a bidding war? Too often!

Unfortunately, many people’s vision of their home and its value is skewed because they have an emotional attachment to their homes, which makes it hard to be objective.

Market value is determined primarily by what similar houses in the immediate vicinity have sold for recently - preferably within the past six months. A common mistake among sellers is basing their asking price on what their neighbors may be asking for their homes. But what the neighbors are asking and what their homes actually sell for are two different things.

As a seller, you need to find out what the comparable home price sales are in your area. If you are using a real estate agent, he or she will gather the comps for you. Then price you home accordingly, perhaps building in a buffer of 3 percent to 5 percent or so for negotiation. If you have an experienced real estate agent then he/she will guide you on how to price the home.

As a buyer, you should also know the comps for homes that you’re interested in. Better yet, have your agent print them out for you. This way, if a seller has his or her home priced unrealistically high, you can present the comps in writing to show him or her approximately where the home should be priced.

The most important thing for buyers to remember is to be patient. Buyers are in the driver’s seat today, so there’s usually no need for buyers to rush into a deal that’s not favorable to them.

If you would like more information or a free consultation please contact us. We would have no problem giving an Annual Mortgage Review as well as a financial review.

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