The 'No Buyers' Market!
There are two parts to this column. The first is for home buyers and the second is for home sellers:
Buyers, everyone is telling you it's a buyer's market. Guess what, they are not telling you the truth. We are not in a buyer's market now. We are in a "no buyers market." If it were a buyer's market then all the buyers out there would be buying, but they are not.
That is why the inventory of homes is creeping up and up. Buyers are waiting because they think they will get a better deal later on. Home prices have slipped a little this last year, but nothing is falling off the cliff. You can wait until next year and maybe the prices will go down some more ... by 1 percent or 2 percent. Have you saved enough to actually wait when you can get the same savings now by entering serious negotiations with a seller? And while you are waiting, some other smart buyer has bought that dream home out from under you.
The people who are finding the right home now and negotiating hard for a good price are the ones who are getting the good deals. All the other people who are "thinking about buying" are missing the good deals. They will wait until the market turns around and becomes a seller's market.
Think about that for a second. You don't get the best deal if you wait until everyone jumps back into buying homes again. Smart buyers are buying now.
The second part of this column is for sellers who are wondering where the buyers are and why haven't they bought their home. Any home can be sold today if you follow the three most important things about real estate:
Sellers, for years it was suggested that the three most important things in real estate were location, location, location. Once and for all, let's put that old joke aside. It has never been true. You can have the best location in the world for a home and it still will not sell. And there are homes in the worst locations that do sell. Why?
The location of your home may give you more money when you sell it. But you probably paid more for that same location when you bought the home, so the location did not really help you.
The real rules to know are price, presentation and management of the sale, which I will explain.
Rule 1: Price. We are talking about the asking price. In most cases the asking price is based on four factors. The first factor takes into consideration the homes similar to yours that have sold recently. Going back a year will give you a false price, because the market is always changing. The homes sold in the last six months will be an indicator of where the market is. It is not a perfect indicator, because we are looking backwards, but good enough.
The second factor is the homes that were for sale but did not sell. One of the major reasons homes do not sell is that the asking price is too high.
The third factor is the homes that are currently for sale. This is your competition. When it is time for a buyer to decide whether to buy your home or a home down the street, well, that is not the time for your home to be the bridesmaid. You want to be the bride.
Finally, the weakest of the four factors is that good old "gut" feeling. Too many homeowners rely more on that than on the other factors. Don't make that mistake. Your home is special, but until someone buys it, it's just another home for sale.
Rule 2: Presentation. When you go to the grocery store you pick out the best-looking fruit and vegetables. The same is true for home shopping. If it looks good, someone will buy it. If it looks bad, then only the cheap bargain hunters are going to make an offer, and they rarely give you a good offer.
Here are a few suggestions. Put in those higher wattage compact florescent lights to make the home look brighter. Don't just tidy up, throw the clutter out or give it away. Trim the shrubs. Shampoo the carpets. Paint the walls. Get rid of the animal smells. Set the dining room table as if royalty were coming to dinner.
The small amount of effort you make to present your home properly will reap significantly higher offering prices. Ask your agent to help you stage your home. And remember that your agent is trained and has many years experience selling homes, so listen when he or she tells you that you need to change a few things in order to sell your home.
Rule 3: Management of the sale. It is very difficult for homeowners to know all the information about pricing. The vast majority of homes are sold by a real estate agent who has ready access to that information. Online sites that offer to help you price your home properly are often badly out of date. But that is not the only reason to have a Realtor manage your sale.
Research has shown that a home sold by an agent will produce anywhere from 16 percent to 30 percent more dollars for the seller than owners selling on their own. That easily pays for the professional fee. Plus the agent is going to make sure everything is done correctly to safeguard the sale. That includes all the marketing and showings of your home.
If you set the price correctly for the current market, if you present your home in the best possible light and if you have a professional real estate agent manage the sale for you, then your house will sell.
By The Times-Union - David Anderson is a licensed real estate agent for Watson Realty Corp. and a member of the Northeast Florida Association of Realtors.
Buyers, everyone is telling you it's a buyer's market. Guess what, they are not telling you the truth. We are not in a buyer's market now. We are in a "no buyers market." If it were a buyer's market then all the buyers out there would be buying, but they are not.
That is why the inventory of homes is creeping up and up. Buyers are waiting because they think they will get a better deal later on. Home prices have slipped a little this last year, but nothing is falling off the cliff. You can wait until next year and maybe the prices will go down some more ... by 1 percent or 2 percent. Have you saved enough to actually wait when you can get the same savings now by entering serious negotiations with a seller? And while you are waiting, some other smart buyer has bought that dream home out from under you.
The people who are finding the right home now and negotiating hard for a good price are the ones who are getting the good deals. All the other people who are "thinking about buying" are missing the good deals. They will wait until the market turns around and becomes a seller's market.
Think about that for a second. You don't get the best deal if you wait until everyone jumps back into buying homes again. Smart buyers are buying now.
The second part of this column is for sellers who are wondering where the buyers are and why haven't they bought their home. Any home can be sold today if you follow the three most important things about real estate:
Sellers, for years it was suggested that the three most important things in real estate were location, location, location. Once and for all, let's put that old joke aside. It has never been true. You can have the best location in the world for a home and it still will not sell. And there are homes in the worst locations that do sell. Why?
The location of your home may give you more money when you sell it. But you probably paid more for that same location when you bought the home, so the location did not really help you.
The real rules to know are price, presentation and management of the sale, which I will explain.
Rule 1: Price. We are talking about the asking price. In most cases the asking price is based on four factors. The first factor takes into consideration the homes similar to yours that have sold recently. Going back a year will give you a false price, because the market is always changing. The homes sold in the last six months will be an indicator of where the market is. It is not a perfect indicator, because we are looking backwards, but good enough.
The second factor is the homes that were for sale but did not sell. One of the major reasons homes do not sell is that the asking price is too high.
The third factor is the homes that are currently for sale. This is your competition. When it is time for a buyer to decide whether to buy your home or a home down the street, well, that is not the time for your home to be the bridesmaid. You want to be the bride.
Finally, the weakest of the four factors is that good old "gut" feeling. Too many homeowners rely more on that than on the other factors. Don't make that mistake. Your home is special, but until someone buys it, it's just another home for sale.
Rule 2: Presentation. When you go to the grocery store you pick out the best-looking fruit and vegetables. The same is true for home shopping. If it looks good, someone will buy it. If it looks bad, then only the cheap bargain hunters are going to make an offer, and they rarely give you a good offer.
Here are a few suggestions. Put in those higher wattage compact florescent lights to make the home look brighter. Don't just tidy up, throw the clutter out or give it away. Trim the shrubs. Shampoo the carpets. Paint the walls. Get rid of the animal smells. Set the dining room table as if royalty were coming to dinner.
The small amount of effort you make to present your home properly will reap significantly higher offering prices. Ask your agent to help you stage your home. And remember that your agent is trained and has many years experience selling homes, so listen when he or she tells you that you need to change a few things in order to sell your home.
Rule 3: Management of the sale. It is very difficult for homeowners to know all the information about pricing. The vast majority of homes are sold by a real estate agent who has ready access to that information. Online sites that offer to help you price your home properly are often badly out of date. But that is not the only reason to have a Realtor manage your sale.
Research has shown that a home sold by an agent will produce anywhere from 16 percent to 30 percent more dollars for the seller than owners selling on their own. That easily pays for the professional fee. Plus the agent is going to make sure everything is done correctly to safeguard the sale. That includes all the marketing and showings of your home.
If you set the price correctly for the current market, if you present your home in the best possible light and if you have a professional real estate agent manage the sale for you, then your house will sell.
By The Times-Union - David Anderson is a licensed real estate agent for Watson Realty Corp. and a member of the Northeast Florida Association of Realtors.
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