Placing your home on the market for the correct price is one of several key elements in getting your home sold. Equally important are the presentation, location and selling features of your home. Working with a professional Realtor or Real Estate Agent that has a strong marketing plan and pervasive web presence will also be key. Understanding who your target market is for your home will also be important. If your home is an entry level home for first time home buyers or investors, it becomes important to know and understand the market for the potential buyer of your home.
Spend an afternoon looking at other homes in your price range and compare to your home. You should be the home that "presents the best" and is the "most attractively priced". Spend time on the internet researching the homes in your neighborhood. Know your market and work with your Realtor to be knowledgeable about your area and the current homes for sale. Track and know every home that sells and what they sold for. The key thing for you in a declining market is to price your home correctly.
It is important for Buyers to understand the opportunities available in a declining real estate market. There are opportunities, however Buyers will need to understand some basics about what opportunities there are and how your Realtor or Real Estate Agent can guide you to successfully taking advantage of these opportunities.
Buyers that understand a declining real estate market will know that the a home which is in excellent condition, in a good location and priced correctly (just under market value) will not be purchased for a low ball price. These homes are not short sales nor foreclosures and the market value remains stable within the current market . After spending time with your Realtor looking at homes you will begin to have a feel for market value and when the attractive combination of a "good buy" comes together (Price, Condition and Location). Your investment in researching the internet and your local market will help you be knowledgeable about making this very important decision. Once you have identified the area you want to purchase in, become knowledge about this specific neighborhood and the market value of the homes within the specific area.
Short Sale Opportunities--A short sale is a property that is what we call "upside down" in the market. The owner owes more money on the property than the property is worth in the current market. The short sale property will be on the market for less than market value. This provides opportunity for Buyers in this current market. It is important to understand some important aspects of short sales for your success. A short sale is all about the numbers to the lender. They are most concerned with the bottom line amount of money that they will save or loose on the property. The formula on a short sale is typically 10% below market value. The listing agent on a short sale is looking for the Buyer to come in close to listing price. The lender will not approve the sale unless the offer is within a reasonable range of 10%. The Buyer will also be expected to purchase the property in an "AS IS" condition. They Buyer will also have higher closing costs and be required to purchase the Home Warranty. The sale is subject to the lenders approval.
Foreclosure Opportunites--REOs are Real Estate Owned property that have been foreclosed upon. The bank now owns the property. Typically, they will not negotiate or accept offers that are of a "low ball" nature. They will not provide disclosures and the property is generally sold in an "AS IS" condition. Foreclosures vary in terms of what opportunities they present. Working with a knowledgeable Realtor or Real Estate Agent can help you determine the market value for this specific home in it's current condition. This will help you determine your opportunity. Your own investment in understanding the market will benefit you greatly in correctly investing in REOs. The stronger an offer the more likely the bank will negotiate. An all cash offer, will tend to move the bank on price.
Whether you are a seller or a buyer in this current real estate market, it is critical for you to understand where the opportunities are and how to price and buy in your local real estate market. Markets are different throughout California and the nation. Some markets have remained stable while other markets have seen decline. Learn about your market and find a professional and knowledgeable Realtor or Real Estate Agent to work with and you will find there are opportunities in Real Estate in 2008.
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