Changes in the Market, 2009
Yeah, there have been changes! Some good, some not so good...
For Buyers For Sellers
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Homes Priced <200k
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Sellers Rule the Day...
Buyers are even using acceleration clauses again. CASH buyers prevail, so new loan buyers are at a distinct disadvantage. Have everything in order when you start - loan applied for, timeline in place.
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If you are a seller, it is nearly impossible to NOT sell your home... Still, make it look nice, and yes, you must price it where it will appraise. Sorry - no way around that!
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Homes Priced >500k
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Buyers Rule the Day
Tight credit, excess inventory, few buyers, all make this price range tough - for now. Will spring back with a vigor when the economy improves.
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It's cliché, but true. You must win both the price war, and the beauty contest. And it will help to have some luck & patience.
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Homes Priced 200-500k
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Balanced. Few investors, so owner-occupied buyers have a shot. As always, have the loan underway, and be ready to move quickly on a nice home. Still an active price range...
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Keep it priced well, and looking nice. Be ready to help buyers with loan costs. Get creative! Do NOT let a good buyer get away - there may not be another for awhile...
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Homes Priced <100k
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CrazyVille! The rules are thrown out, as this is almost entirely the domain of banks as sellers. Some buyers have written more than a dozen offers, just to get one to stick. Short sales are plentiful, and require ANOTHER level of expertise to actually purchase one.
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Tax Credit
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Good thru 4/30/10. $8000 for first time buyers, $6500 for selected repeat buyers.
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This is also good for sellers, as it takes "some" of the pressure off of buyers costs, plus brings a few more out into the market.
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Interest Rates
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Lower than anyone alive has seen. Below 5% for 30 year fixed. No kidding!
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If you are also a buyer (after selling), this should be motivation to do whatever it takes to complete your sale...
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Jobs
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The linchpin to the entire recovery. As long as jobs are not being created, the recovery is likely to be a mirage...
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This is not a metric any of us has control over, unless you have influence with the politicians. If you DO have this influence, ask them to relax the attack on employers.
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Sunshine
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Arizona has it. Chicago does not.
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Patrick Harfst, CRS©
;)
;)
Patrick, I love the way you graphed this out.. especially about Sunshine (lol). I am going to reblog. We do get sunshine in the winter in Massachusetts, but the days are short, especially now.
and thanks for letting me reblog!
LL