Timing Is Everything

We are often asked, "How's the market doing?"  Home prices and sales levels are the implied questions.  Well, here's an answer to a question that is not asked, but should be:  "It is taking longer today to buy or sell a house than it used to take - sometimes a lot longer!" Several internal process changes, driven by national reforms, are extending the time to close a transaction.  New rules are in effect to make sure home appraisals remain at arms length, away from undue influence.  Lenders and title companies will soon be working with new disclosure processes for greater consumer protection.  Federal incentives for refinancing home loans have invited a massive workload increase.  Whether these government reforms are good for the industry or not (and let's assume they are) they have slowed the processes of buying and selling property.  A second big change in today's market is the larger mix of "distressed properties" on the market.  Homes subject to short sales and bank-owned properties often take a very long time to market and sell because of the added complexities and additional parties involved.  Not every home on the market today is equally "buyable" by every consumer. 

So what do these subtle, internal changes mean to you as a consumer?  Each situation is different, but these changes and trends in the market place may definitely affect you.

Consider the importance of timing - it may not be everything, but time frames are an important consideration in realizing your plans to buy or sell a home.  It is also said that time is money - pretty hard to measure that, but true none the less.  Buyers, while considering the features of your dream home, the price range, neighborhoods, loan payments, drive times - all important, for sure, but also consider a time line that meets your needs and wants.  To avoid surprises and dissapointment, you should work with your Realtor to establish the normal times it may take, considering your circumstances, for each phase of the buying process.  It's called a Timing Analysis, and it may guide your decisions during a purchase.  Thirty to sixty days from the time you decided to buy a home until you had the keys in your hand was "normal", but that normal is getting longer.  Sellers, knowing and meeting your timing needs and wants is a very important part of marketing your home - perhaps the most important.  Your timing expectations should be a central part of the decisions on listing and marketing your home for sale. 

The clock is ticking - start a time line and back it up to the beginning!

• Want to be in your new home before the kids start school?
• Looking to buy a home for student housing near the University? (At the same time as everyone else?)
• First time buyers - you must own that new home by November 30th, and there are 8000 reasons to be start making your decisions now.
• Should I sell my home before I find one to buy?  It depends on your circumstances, of course, but getting it wrong can cost you money and frustration! 

All good questions that need a timing answer.  This market has changed for consumers, and more is to come.  Work with your Realtor to develop a Timing Analysis of your needs, and get a realistic view of how long it might take to accomplish your plans.  Timing may be everything.

http://reconsumer.wordpress.com    A blog site for consumers

http://www.firsthomebuyersite.com  A web site for first time buyers only 

http://www.EastOfTheArch.com        A great seach site

Bob Ashauer
RE/MAX Alliance
Collinsville, IL