In the last few weeks I have seen a plethora of mis-information from clients and fellow agents alike. Dismal news reports make even the most optimistic agents cower with fear. I am not going to BS around the issue- this market has it's challenges, but the Egerer & Weidauer Team is facing them head on. Here are some solutions to the many problems we are facing in today's real estate market:
MIS-INFORMATION ABOUT HOME LOANS-
There is no shortage of money for home loans and no freezing of credit to purchase or refinance. Mortgages are readily available to those who qualify. Another misconception there is that standards have become so high that your average consumer wouldn't qualify- and that information is FALSE! Underwriting standards have tightened up, but if you have a down payment of at least 3 to 5%, steady income, and decent credit, there is no question you will be eligible for a home loan. David Kittle, chairman of the Mortgage Bankers Association says, "Money is clearly available as long as you can qualify for it with at least a modest down payment and decent credit history." Bottom line: Scary as the news has been about stocks and banks, this is not the case for mortgages.(http://seattletimes.nwsource.com/html/realestate/2008280221_harney19.html)
UNREALISTIC SELLING EXPECTATIONS-
"The Seattle-area housing market, once touted as bulletproof against the forces that were pulling down other markets across the country, is now stressing out sellers, who are seeing inventories rise, sales fall and prices drop. Many are shell-shocked - particularly those needing to move out of town or trying to forestall foreclosure." (http://seattletimes.nwsource.com/html/localnews/2008221341_housing02m.html)
Property is selling in the Pacific Northwest area and has increased by 4.1% since this time last year, but that is still low compared to where we could be. Homes are on the market longer than usual because of a little something called the 80/20 rule. The idea is that 80% of the outcome comes from 20% of the input. This principle can be applied to many areas of your life and still remain true. In relation to real estate, 80% of the homes on the market are over priced and 20% are at or below market value. To have the edge you need to get your home sold, you need to remember Pareto's Principle. You want to be in that 20% for like kind properties in your area.
All this bad information is causing buyers to remain on the fence until "brighter days" (even though they are pretty ideal right now) and sellers to also sit waiting for a "good offer" (even though their price may be completely out of the market). No one likes the waiting game-don't get stuck on ideas that will keep you sitting when you should be acting, no, acting wisely!
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