By Bill Cherry, Realtor, Dallas, Texas
My 43rd Year Serving Texas
972 380-7347
Meet me on the web at www.billcherrybroker.com
The number of homes for sale has climbed about 30% over the past 12-month period, thus reaching the highest level in about 10 years. It appears that the real estate market throughout the country may now be beginning to cool off.
Whether it's actually happening or not is not worthy of debate, since prospective Buyers are beginning to perceive it to be the case. So while these changing dynamics have implications for us all, they especially impact those planning to sell their homes.
Here's the Story
Higher mortgage rates are beginning to make houses less affordable in many areas of the country, including Dallas. A 30-year fixed rate is not only moving up, but underwriting requirements on borrowers are getting more strict. And the Federal Reserve's current position seems to be to cautiously continue to up tick the prime rate as the board deems necessary, to keep inflation in check.
When the number of Buyers thins and homes on the market go unsold for any length of time, Sellers are no longer able to call the shots. I believe that the remainder of 2007 will be a period where Buyers will continue to gain bargaining power over Sellers. What do I use as my basis? That I have been through and survived many of these down periods during my forty-three years as a Realtor. Frankly, there aren't many of us around who can say that.
So the question is, how do you as a prospective Seller cope with these new market conditions and make them work to your advantage?
Pricing
As recently as last year, Sellers frequently looked to see what homes in their neighborhoods had sold for, and then insisted that theirs be listed for at least 10 percent more.
That strategy frequently works in a Sellers' market, but it doesn't hold much water when the cards are flipped to a Buyers' market.
Today, a Seller must make certain that his house will come across to the potential Buyers as a good value relative to other homes on the market. Overpriced homes, epecially condominiums and lofts, in many cases, don't even get cursory consideration from the market --no showings, no offers.
We've learned that Buyers and brokers now rely on the information that's available on the World Wide Web so that they can screen listings based on price, size and other parameters.
So if your home isn't within the prospective Buyer's price range ballpark, the chances are he won't even know it's for sale.
What to Do
The smart Seller will list his house within the bottom 25% of the market for comparable homes, and he will allow the reduction of that price, say, every two weeks or so that the house is on the market, until it sells.
We've known for years that in the overwhelming number of circumstances, homes are the most likely to sell and for the highest price. within the first several weeks they are on the market. Catering to that fact is a very important facet of successful selling.
Conclusion
I've been a licensed Texas Real Estate Broker since 1964. That's a long time, so as you can imagine I've been through many of these economic cycles. I've learned how to successfully guide my clients through home selling land mines like this one.
As your Realtor, I will develop a marketing plan that will, from my experience, give you the best shot at a quick sale and at the maximum price in the market. Call me. There's no obligation. My phone number is 972 380-7347. The email is cherrysells@aol.com. It's time for us to meet and talk!
Copyright 2007 - William S. Cherry
All Rights Reserved
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