A Striking Financial Reason To Address Price & Condition Immediately

Okay, so I am a professional Home Stager and NOT a financial wiz :-)  However, I learned something very interesting last week at a presentation that is ANOTHER striking financial reason to price right and stage a home before it's listed on the market.  I do not have all of the technical terms down but I will do my best to quickly and accurately explain what I know.

In response to our nationwide increase in housing foreclosures and other related economic injuries, the mortgage industry is tightening their lending practices (some voluntarily, some federally mandated). As a result, if a home is flagged as being in a "declining market", buyers with conventional loans may be required to put an ADDITIONAL 5% DOWN TO BUY THAT HOME! This does not apply to FHA or VA loans.

Here in Omaha there are several zip codes that have been placed on a list and said to be a declining market. Homes in these zip codes that have been on the market for 6 months or longer would fall into this category and could require an additional 5% down payment.

I do not know which zip codes are on the list or what the criteria is to determine a declining market; I believe appraisers have an affect on that.

But I DO know that Home Staging - especially when combined with an appropriate pricing strategy - can reduce the days on market and therefore help sellers avoid getting lumped into this category.

Agents - I would ask your favorite lender about this and use this as a tool to get accurate pricing agreements from your sellers and encourage or provide them with Home Staging Services; your sellers can't afford NOT to stage their homes and be real on price.

Stagers - I would ask your favorite lender about this to learn more about your area of the country and perhaps you can help educate your agents about this; just another reason to stage your listings!