As a Realtor(r) in NWA, sometimes its difficult to turn on the news or read the paper when everything you see is telling you that the housing market is falling apart. Just this morning, the national news is all over how the median home price is falling for the first time in X years (you'd think it was Thousands of years the way they're reporting it).
So, has anyone noticed that anything in the news any more is "sensationalized"? Even in magazines! "45 Ways to protect yourself from identity theft!" "Skin Cancer - What You Need to Know" "The Secret Truth About Trans-Fats!"
I've reached the point in my life that I take EVERYTHING (and I mean EVERYTHING) with a grain of salt. I know I need to protect myself from identity theft. I know to use a good sunscreen when I'm outside. I know trans-fats are bad for me (that's probably the worst realization for me, since I grew up in a Southern household where Crisco was used in EVERYTHING).
So. The housing market is "bad" right now. "Horrible" even. "Tragic".
Well. Yes, it is.
In comparison to the boom of the last few years, it's definitely in a downturn. And according to the news, whatever you do, DO NOT ATTEMPT TO BUY OR SELL A HOME RIGHT NOW!
HORSE NUGGETS! (I was going to insert another picture here, but on second thought, you might be reading this over breakfast...........Just use your imagination)
Are homes selling right now? Yes. Are buyers buying right now? Yes. How can you protect yourself if you are wanting to do so? Hire a Realtor(r)!
SELLERS:
- Listen to your Realtor(r). Those comps you're being shown aren't just wild numbers being pulled out of thin air. They're showing you what comparable properties are selling for. Yes, someone hit the lottery in Richmond, IN last night and made $314 million - but selling your home for $50,000 than what the market shows it will bear is an unreasonable expectation.
- If you're wanting the best offers to come in, make your home appealing. Clean up the inside. Patch and paint. (Paint is cheap-but do a good job!) Don't spend Thousands of dollars thinking you need to add a porch or put in a pool. Make what you have look as close to new as possible. Roof Issues? Fix them now or expect to lose that much plus about 50% from a potential buyer.
- Mow the yard, put in a flower bed, fix that fence.
- You don't have to spend thousands of dollars - but put forth the effort to make it look good.
- Make it easy for buyers to want your home
- If you're in trouble with the bank - CALL A REALTOR NOW - we can help!
Let me tell you about a couple we've worked with. I'll call them Rick and Violet. Rick and Violet have a great newer home on some acreage in a nice area. They moved in about 3 years ago and proceeded to personalize their property. They landscaped, built a shop, modified a few things in the interior, and generally did a lot to make it THEIR home.
Here it is 3 years later and they've decided to downsize. They called us and asked us to help them market their home. I'm sure they were surprised when we gave them the comps for their home, but they read the CMA and realized we weren't shooting them a line. Then they asked what the could do to improve the marketability of their home. We made a few suggestions and they implemented them. Now, we're marketing their home at the top-end of their suggested price range - and I'll be surprised if it doesn't sell soon! These folks have trusted us and we're going to do our best to deliver for them!
Now, let me tell you about another seller. I'll remain gender neutral and kinda vague in order to protect their privacy. This seller has a home and shop on some small acreage in a rural area. This seller priced their property way above the comps. Now, mind you, the seller did a lot to the inside of the home that we had talked about, but didn't do much about the exterior. Peeling paint, unkempt yard, etc. etc. After about 3 months of working hard to market this home, The seller pulled the listing. No Showings, only 1 phone call about the property. However, it was all our fault it didn't sell. "We didn't market it right".
I learned a lesson on that one - a big lesson. There's an unsatisfied client now. I really wanted to make it happen for this seller, but bit off more than I could chew. I won't let that happen again.
BUYERS:
- Before you even call a Realtor(r), get pre-approved. Call your favorite bank, go in, and make an application for a home loan. It's about 30-45 minutes of time better spent NOW than later. And note, I said PRE-APPROVED, not PRE-QUALIFIED. PRE-APPROVED means the bank says that if you find a home that's in your price range, they'll attempt to do the actual loan. PRE-QUALIFIED simply means that you "qualify" to apply for a loan, but there's no guarantee that if you find the home you want, they'll attempt to fund the loan.
- After getting PRE-APPROVED, then - Call a Realtor--and not just any Realtor - remember, you're hiring someone to help you spend a LOT of money. Call one that is experienced, has extensive knowledge of the market, and has the resources and further education to help you.
I have some friends that moved into my neighborhood about a year ago. They used a Realtor that was the husband of a woman that one of them worked with. This Realtor was new to the area. They bought a small home. In the last year, they've found that the deck is literally falling through and needs to be replaced. The bathroom has had a leak issue for YEARS that has rotted the floor joists underneath. They also now realize they overpaid for the home even if it didn't have those problems. Now they're spending quite a bit of money to get this home fixed, and will probably NOT get any of that back when they get ready to sell. Had they used someone familiar with the area, familiar with good home inspectors, and with extensive education, they wouldn't be in the situation they're in right now.
So, how do you choose a Realtor in either situation? Hire them! Treat it as if you're hiring an employee. Interview them. Check References. Ask questions. Then hire one--but, just because you've hired them, doesn't mean they're going to be quiet and complacent and bend to your every wish. Remember, you're hiring their knowledge, experiences and resources. Yes, you're the boss, but listen to them, discuss things with them, and make educated decisions based off their input. TEAMWORK.
And if you find you hired the wrong one? Fire them. It's pretty easy to do so. None of us like to be fired, but personally, I'd rather be fired in the middle of the process rather than let it drag on and let bad blood build up. As a Realtor, my duty is to serve you - and for me that means that if there are others that can do it better, then I have a duty to step aside and let you have them do it!
Sorry this has been such a long post. I've said all this in order to say, DON'T BE SCARED right now, BE PREPARED. Use a Realtor(r) as your umbrella right now to protect you from the "FALLING SKY".
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