The traditional wisdom has always been it is better to wait until September to put your home on the market, by-passing listing your home in August. While I agree that in most years this may be true, as many buyers and agents take vacations in August, in 2011 I have to say this may not be a good idea, especially if your home is worth more than $700,000. There is a very good reason for this that many buyers are aware of, but unfortunately sellers may not be.
On September 30, 2011 the jumbo conforming loan limit is being reduced from $729,750 to $625,000. That means that if a buyer is going to get a loan with the best pricing and easiest amount to qualify for, after Sept 30 they will only only be able to get a loan up to $625,000. Above that amount the loan will become a jumbo loan which means higher interest rates, stricter credit requirements, and higher down payment requirements. A few years ago buyers were able to get around this by getting a conforming loan for the first and then an equity line or second to make up the difference so they did not have to get a jumbo loan. Well, we know that these seconds really do not exist any more, so the effect of lowering the conforming loan limit will be BIG.
So, if you are a seller, and especially if your home is worth over $700,000 I would recommend that you put your home on the market as soon as possible, even if it means putting it on in Aug, price it aggressively, and get it sold before it becomes much harder for a buyer to qualify for your home making it depreciate in market value.
the clock is ticking!
If you have any questions about buying or selling a home in San Mateo or Santa Counties please feel free to contact me.
Marcy Moyer
Keller Williams Realty
marcy@marcymoyer.com
650-619-9285
D.R.E. 01191194
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