Price really the No. 1 incentive to get people to look at your listing?
Sudies contuinue to show that when you price a home correctly right from the start you will get more showings and a higher sellling price than if you priced your home above current market value just to see what happens.
The reality is: When a home is priced too high, you are forced to lower the asking price and price reductions sometimes weekly, are a common accurance with some when selling a home today.
Studies continue to show, once a property fails to sell at its debut price, the time it spends on the market can encourage buyers to be aggressive in negotiating and bring lower offers than average. Price reductions continue to encourage this aggressive bargaining."
If you are serious about selling, NOW is the time to adjust the price to whatever it takes to get the property sold. PRICE ALONG WITH AN AGGRESSIVE MARKETING PLAN.
NO one knows where the market is going. Now is the time to price right and sell if you are ready to sell. If you're upside down (owe more on the home than it can sell for), but you can get out of it for $10,000 today, do you want to wait a year and risk getting out out for $20,000? That's what sellers need to think about. This is a selling time based on where the market is going and a buying time if you are ready to benefit from the low interest rates and great home buying opportunites.
No one wants to make these hard decisions, so they do so with a long term plan involved. Just remember, if your waiting for the market to "turn around" it may be a long road if your a seller. If you are a buyer NOW is the time to enjoy the benefits of home ownership at the right price. If your are going to be in your home for 7-10 years this is your time.
Tuesday, February 22, 2011
Monday, February 14, 2011
Home not Selling?
Home Not Selling? It’s Not Personal, It’s Probably Price
By Tamara Schuster, Broker
Prudential Elite Realtors
Home sellers face a new reality as they look to move up, down, in or out of their American dream in today’s market. Consumers, particularly those who purchased their homes within the last five years, often find their options limited by a lack of equity. Those who can sell are sometimes numbed by deflated home prices and find it difficult to justify yesterday’s valuations with today’s reality.
Many home sellers only one price in mind, hoping to lose no additional ground. Others seem to have taken this market personally, letting emotions override analysis when setting price. Buyer sentiment has shifted as well, centered on maximum value with abundant amenities , these homes sell FIRST. The rest of the homes are just languishing on the market. Both sides should be realistic as comparable sales and local-market dynamics still determine fair-market value.
And there are compelling reasons to be realistic and make a move now? Sellers, assuming their objective is to buy another home, can capitalize on some of the lowest mortgage interest rates on record and an inventory of homes at attractive prices. So while they will sell for less, they will also buy for less and with significantly cheaper borrowing costs. The more you move up, the more you usually save.
Of course, professional sales representation is essential this transitioning market or any other. The Prudential Real Estate Network, recently recognized for “Highest Overall Satisfaction for Home Sellers Among National Full Service Real Estate Firms” in J.D. Power and Associates’ 2010 Home Buyer/Seller StudySM, is composed of true, local-market experts whose experience, analysis and consultation generate results in all market conditions.
As the local experts, they’ll help set fair-market prices using factual reference points, such as an appraisal, comparables sales and personal knowledge to help estimate market value. Today, a house priced at or slightly below market value will attract the interest of real estate professionals and buyers, while overpricing chases them away. Even if the sellers adjust their prices later, it’s difficult to recapture buyer interest.
Sales professionals develop comprehensive marketing strategies to sell a home. They generally use open houses, yard signs, Internet exposure, MLS, newspaper ads, brochures and other means to market properties.
Beyond that, they counsel sellers on other conditions that may keep sellers’ homes on the market, including:
• CONDITION AND APPEARANCE: Sellers shouldn’t rely on buyers to use their imagination; they need to capture it. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious, and the most cheerful. This invariably means rearranging and eliminating furniture, removing excess knickknacks and so on, to create an open, uncluttered look. Outside, do a visual check of the front of the house from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and a freshly painted front door. A real estate professional can offer some guidance in this area.
• TERMS/CONDITIONS: Even if the home is accurately priced, and the buyer is delighted with what he or she sees, if the buyer can’t live with the terms of the sale, he or she may walk away. Keep an open mind on terms and conditions and evaluate how they may affect a potential sale.
• INCENTIVES: Offering incentives can be just the impetus a potential buyer needs a buyer needs to choose your property over others. Consider offering a carpet or paint allowance. If the buyer knows up front there is allowance for the worn carpet or paint, then may overlook those cosmetic flaws. You could pay for a professional home inspection or a home warranty, or pay closing costs.
Real estate opportunities abound for sellers and buyers who can come to terms with today’s market conditions. A qualified real estate professional will help you navigate the market, protect your interests and keep you moving toward your housing dreams.
Tamara Schuster can be reached at (630) (886-9596). Prudential Elite Realtor Naperville, Illinois is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
By Tamara Schuster, Broker
Prudential Elite Realtors
Home sellers face a new reality as they look to move up, down, in or out of their American dream in today’s market. Consumers, particularly those who purchased their homes within the last five years, often find their options limited by a lack of equity. Those who can sell are sometimes numbed by deflated home prices and find it difficult to justify yesterday’s valuations with today’s reality.
Many home sellers only one price in mind, hoping to lose no additional ground. Others seem to have taken this market personally, letting emotions override analysis when setting price. Buyer sentiment has shifted as well, centered on maximum value with abundant amenities , these homes sell FIRST. The rest of the homes are just languishing on the market. Both sides should be realistic as comparable sales and local-market dynamics still determine fair-market value.
And there are compelling reasons to be realistic and make a move now? Sellers, assuming their objective is to buy another home, can capitalize on some of the lowest mortgage interest rates on record and an inventory of homes at attractive prices. So while they will sell for less, they will also buy for less and with significantly cheaper borrowing costs. The more you move up, the more you usually save.
Of course, professional sales representation is essential this transitioning market or any other. The Prudential Real Estate Network, recently recognized for “Highest Overall Satisfaction for Home Sellers Among National Full Service Real Estate Firms” in J.D. Power and Associates’ 2010 Home Buyer/Seller StudySM, is composed of true, local-market experts whose experience, analysis and consultation generate results in all market conditions.
As the local experts, they’ll help set fair-market prices using factual reference points, such as an appraisal, comparables sales and personal knowledge to help estimate market value. Today, a house priced at or slightly below market value will attract the interest of real estate professionals and buyers, while overpricing chases them away. Even if the sellers adjust their prices later, it’s difficult to recapture buyer interest.
Sales professionals develop comprehensive marketing strategies to sell a home. They generally use open houses, yard signs, Internet exposure, MLS, newspaper ads, brochures and other means to market properties.
Beyond that, they counsel sellers on other conditions that may keep sellers’ homes on the market, including:
• CONDITION AND APPEARANCE: Sellers shouldn’t rely on buyers to use their imagination; they need to capture it. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious, and the most cheerful. This invariably means rearranging and eliminating furniture, removing excess knickknacks and so on, to create an open, uncluttered look. Outside, do a visual check of the front of the house from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and a freshly painted front door. A real estate professional can offer some guidance in this area.
• TERMS/CONDITIONS: Even if the home is accurately priced, and the buyer is delighted with what he or she sees, if the buyer can’t live with the terms of the sale, he or she may walk away. Keep an open mind on terms and conditions and evaluate how they may affect a potential sale.
• INCENTIVES: Offering incentives can be just the impetus a potential buyer needs a buyer needs to choose your property over others. Consider offering a carpet or paint allowance. If the buyer knows up front there is allowance for the worn carpet or paint, then may overlook those cosmetic flaws. You could pay for a professional home inspection or a home warranty, or pay closing costs.
Real estate opportunities abound for sellers and buyers who can come to terms with today’s market conditions. A qualified real estate professional will help you navigate the market, protect your interests and keep you moving toward your housing dreams.
Tamara Schuster can be reached at (630) (886-9596). Prudential Elite Realtor Naperville, Illinois is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
First Time Homebuyers Opportunity of a Lifetime
First-Time Homebuyers Face the Opportunity of a Lifetime
By Tamara Schuster, Broker
Prudential Elite RealtorsNaperville, Illinois
Today’s first-time homebuyers are presented with the opportunity of a lifetime. Mortgage rates in early December stood near lows last seen during the Truman administration while home prices were well off their peaks of previous years. The combination made housing affordability, as measured by the National Association of REALTORS®, the highest since NAR® launched its Affordability Index in 1973.
Housing inventory is also abundant in many markets, enabling first-timers to secure good homes and pave the way to their financial futures. Homes and their long-term virtues of shelter, wealth-building and personal pride are available at bargain prices that won’t, or can’t, last.
Naturally, first-timers have many questions about home buying, starting with costs. With research and the services of a licensed real estate professional, these consumers can demystify the process and place themselves on the fast track to homeownership.
Knowledge is POWER – Nine out of every 10 home searches today begin on the Internet. With just a few mouse clicks, you can check out neighborhoods, search online listings and take virtual tours packed with detailed photographs. The process gives you working knowledge of home availability and pricing in your local markets so by the time you sit down with your real estate sales professional you’re well on your way.
Also visit informative websites such as www.ginniemae.gov, www.realtor.com and prudentialelite.com to name a few.
Affordability – Costs involved in the purchase of a home – mortgage, down payment and closing expenditures – can be overwhelming to first-time homebuyers. By looking at your income and debt ratio, your real estate professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, utilities and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance.
Mortgage Payment – In today’s buyers market, you may face competition for your dream home. To establish your spending limit and gain the ability to move quickly on a home, get pre-approved for a loan before you start looking. The fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. This process will also help you identify any credit challenges you must address prior to your purchase.
If you don’t have a specific mortgage lender in mind, ask your sales professional for a recommendation.
Down Payment – The down payment amount varies depending on the value of the home you choose and your mortgage lender. First-time homebuyers may also qualify for down-payment assistance programs and grants available through their states and municipalities. Contact your state housing finance authority, county housing and community development office for an application.
Closing Costs- must be factored in as well. These include origination fees charged by the lender, title and settlement fees, taxes and prepaid items such as homeowners insurance or homeowner association fees. All told, buyers should spend no more than 28% of their income on housing costs, according to Fannie Mae. Your real estate professional will be able to explain your options.
Making Offers – Make sure you visit several different homes to get a feel for the marketplace. Visit the ones you like again to see things you might have missed. Make sure you understand and are comfortable with every aspect of the transaction.
Home ownership remains a sound financial decision for most and a key component of long-term financial planning. First-time buyers who seek homes for all the right reasons – a place to raise a family, build for the future and face life’s opportunities and challenges – can secure their dreams and build for their futures at some of the most attractive values in years.
Tamara Schuster, Broker can be reached at (630) (886-9596). Prudential Elite Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.
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