Sellers, now is a good time to get back into the selling game. In the last year as a method of forcing prices higher, banks and government agencies who hold foreclosure homes have been doling them out with a teaspoon to generate multiple offers, grow the real estate market, and overall drive pricing up. Unfortunately, as usual, they have picked the worst time to do this for frustrated buyers who are now late to the market and want to buy. But you can benefit from this….here’s how.
1. There ARE buyers out there. Qualified buyers are in the market and want to buy. Late in the game but they are there. Interest rates are still low but are expected to increase in 2014. If interest rates go up 1% in the next 6-8 months, buyers can spend $20k more on a home now for the same monthly payment at today’s rates and still be saving in the long run. The rule of thumb right now for desirable properties is to go into bidding wars – these buyers are serious.
2. It is Easier to buy from a REAL PERSON. This is a perfect time for sellers to swoop in and offer an alterative to the hassles of foreclosures and short sales – a real person. It is much easier and better to deal with a real person on these sales. Short sales are a nightmare of waiting and dissapointment for buyers and foreclosures can be equally as difficult with the “my way” demands – my contract, liquidated damages for less closings, waiting days and weeks for answers on everything, etc. And sometimes with the unloanable state of foreclosure properties, the only alternative is to deal with a real person.
3. Prices ARE going UP. The economy is getting better and prices are getting better inch by inch, but the shortage of inventory has driven prices up. Many sellers I have worked with have been surprised what they are able to get for a move-in ready home or even a fixer upper. I recently had a seller who wasn’t sure they could get the list price and even wanted to quit after only a few weeks on the market. His wife and I convinced him that he should try. We closed that month and he was still surprised he got the price they did. You just never know what you can get until you ask. It is better to ask than to hear that you want to sell and your neighbor just sold for a good price. You don’t want to be the one saying “I should have tried” or “I would have sold if I had known I could get that.”
4. Still deals out there for YOU. There are still deals out there for you on your next home. If there is a type of home or an area that you have always wanted, it is still not too late to get the deal on that home. Almost too late, but there is a small window. It is easier to pay less on a home that you will have for years. As a buyer, $50 in monthly payment is worth $10k in purchase price. It makes it much easier to get that unattainable home now with lower interest rates, etc. than later
Look at your situation and call in a professional – you just never know. Again, you don’t want to say WOULDA, COULDA, SHOULDA.