Is The Housing Market Slowing You Down? ~:~ Achieving Your Real Estate Goals In A Slow Market

It's the end of the world as we know it! Honestly! To listen to media outside of the real estate industry, the housing "bubble" is about to burst and foreclosures are at an epidemic rate. News like this would make it seem like this is the first time we have ever had a slow market. These headlines have sellers shaking in their boots, and buyers wary of purchasing. 

The first thing everyone should do? CALM DOWN. Now, take a deep breath.... Breath in, Ahhh, Breath Out. Isn't that better?

Unfortunately, the days of putting our houses on the market and having 6 offers within 4 hours is over. Sorry to burst your bubble. But that is the only bubble that is bursting in our housing market. The truth of the matter is Arizona properties are still selling in a reasonable amount of time. And did I mention it is a GREAT time to buy?

Let's take for example the most recent statistics provided by the Tucson Association of Realtors® for Cochise County. There were 90 active listings at the end of the month of June, 2007. During the month, 21 houses sold. If 21 homes sold per month until the current inventory was gone, we would be out of homes within 5 months. Compare that to homes in other parts of the country. Some areas have absorption rates of 18-36 months. We are very fortunate to live in such a balanced market.

But I hear the concerns of my prospective clients ringing in my ears: "Lexa, we need to sell our home NOW, as in yesterday." "Lexa, I'm just worried that if I buy now, this house is going to lose value." Many of my clients have expressed these same worries, and I have faced them myself. Buying and selling a home is always a nerve-wracking process. But to make it as smooth a transaction as possible, here are my suggestions.

• Accept the fact that the market has slowed, and change your state of mind. Home prices have been priced aggressively high for the past two years, but no more. We can no longer price your property to "test the market" and "see where it goes". Buyers will quickly loose interest in homes that are over-priced or on the market for a long period of time.

• Don't look a "gift horse" in the mouth, and don't snub any buyers. Analyze what your bottom dollar really is, and ask yourself if you can seriously turn that offer away rejected. The purpose of an offer is to open negotiations. I always encourage my sellers to look at what the offer is really saying, and what their bottom dollar will be when they close. If it is a stellar offer, accept it! Don't be greedy! If it needs some work, counter offer with what you think would be closer to you and your agent's expectations.

• Be open to new ideas and listen to counsel from your agent. After all, why did you hire a Real Estate Agent? Did you like the pretty sign flashing in your front yard? Or did you chose someone because they could guide you through the world of real estate? If you are anything like myself, I chose a professional to take over the details of marketing, negotiating, and making the transaction go as smoothly and quickly as possible. Your agent has the knowledge, resources, and information needed to make sure the transaction is in your best interest.

• Your best interest is not always about money. It is also about protecting you from various mishaps and unforeseen risks in the selling process. Sometimes it is making sure you are not going to end up trying to defend yourself in court for violation of fair housing laws or mortgage fraud. It is always wise to have a team of professionals to advise and guide you.

• Remember that if the purpose of you selling your home is to move, then MOVE! Box up the novels, extra clothing, and anything that might suggest that you are trying to stick around. Those collectibles and breakables should be the first items packed. You don't want your wine glasses to be used in a juggling contest during your open house, do you?
  

And for my buyers:

• Don't be afraid to make an offer on that house you love. Responsible Buyer's Agents will make sure the home's price and your offer is comparable with the real estate market.

• It is wise to be pre-qualified for a home before you make an offer. Sellers are wary of being taken advantage of. A "pre-qual" letter or Loan Status Report will inspire confidence and can make the difference between your offer being rejected or accepted.

• Don't be overwhelmed by the choices that are out there. Narrow down properties before you go to look with all the information your agent can obtain. Limit yourself to 5 home viewings when you are out with your agent. Bring along your notebook, camera, and even your video camera. After viewing a home, write down any positive or negative thoughts you had about the property. There is nothing worse than getting down to business, and not being able to remember "Did the blue or gray house have the hardwood floors?".

• When making an offer, be realistic about the price and options you are asking the seller to pay for. Sellers are a little more desperate, but not ignorant. There will be desperate sellers out there, but there are also desperate buyers who will be willing to pay full price.

With the right real estate professional by your side, both buyers and sellers can work in harmony and each reach their real estate goals. Will you be one of them?

Curious about any of the information I posted here? I welcome your comments and questions, and would love to help you with your next real estate transaction. Feel free to visit my website at SEAZHomes.com or call me at (520) 405-2857.