Category — Selling

With the amount of inventory in the real estate market at record highs, there are many homeowners that want to sell their houses for various reasons.  Mike Larson, an expert in the real estate industry has some insight on selling real estate since he recently placed his home on the market.  Here are three key points that he feels everyone should analyze before selling their home. 

1. Closely study local conditions before choosing a listing price and marketing strategy.  The amount of inventory in Peoria, Illinois dosent really matter if your selling a home in South Florida.

• In Mike Larson’s Case, he found that in his local areas he notced that local inventories were falling and that bargain hunters were the results of this as they capitalized on deals that were offered in the area.

1. Make sure you get an agent who knows what he or she is doing — and who is realistic about local market conditions. Even today, there are plenty of pie-in-the-sky agents who won’t be realistic with their sellers. They’re perfectly content to leave overpriced properties on the market for months and months, either because they’re incompetent or they’re afraid to offend their sellers.

• Based on actual conditions, not what you hope for.  In Mike’s case, he expressed his wishes upfront and set some expectations for his agent.

1. Forget about sentimentality. You have to look at any home sale as a business transaction. Too many people get wrapped up in their own personal sentiments about their homes, and that just gets in the way of actually selling.

• It is important to be realistic when selling your home.  Mike’s neighbor was not pleased when he priced his house according to market conditions, his response was “tough luck”
• Mike also made another interesting point: “I was able to undercut competitors because I “bought smart” in the first place. I signed the purchase contract in 2003, before the housing market got too nutty. I would have rented if my search began in 2005 when valuations were totally in the stratosphere.”

These are vital considerations to make when you feel that it is the time to sell your home.  It is also important to work closely with a real estate professional who is in tune with the local market.

Below are some great statistics on the local Outer Banks real estate market for November provided by The OBX Team.

OBX housing market overall:

·         100 residential homes in the Outer Banks sold.

·         November had an increase of 5 and 3 units sold from September and October respectively.

·         An additional 42 homes sold November 2009 compared to November 2008.

OBX distressed sales (foreclosures and short sales):

·         Distressed sales made up 27% of the total sales

·         17 foreclosed homes were sold in the month of November, along with 10 short sales for a total of 27 transactions.

·         Down from distress homes being 34% of the total sales in the month of October.

 The OBX Team is a group of three Realtors from Coldwell Banker Seaside Realty that is ready to handle all of your buying and selling needs. 

1. Fewer Showings – Yes there are less buyers, but those buyers that are left are usually very serious about making a purchase.

2. Less Competition – Most people wait until spring and summer to list their home, which means during the winter you will have far less competition than at any other time of the year.

3. Homes Show Better During the Holidays- Buyers love homes that can tell a story. The holidays are a great time to show homes because the home is usually dressed up for holiday celebrations.

4. January is the Biggest Transfer Month- Did you know that more corporate moves happen during the month of January than at any other time of year? This may be a great reason to list your home during the winter!

5. Timing – By putting the home on the market during the winter you may be able to more easily hit your moving goals!

6. More Time to Get Top Dollar – By starting to market your home early you may be able to secure a higher price.

7. Great Time to Shop – If your home sells quickly you will be able to shop for your next home during the winter; this is a great time to find a bargain

8. More Advertising- Because most agent and offices have less inventory during the winter your home may be advertised more often than during the spring months.

9. More Attention – Most agents will be able to devote more specialized attention to your needs during the winter because they have less clients to manage.

10. The Market – Today’s interest rates are at forty-year lows. This gives buyers more spending power, and will be even more important when you begin shopping for your next home!

There has been much talk about the sale of luxury homes in the real estate industry as a result of our current economic conditions.  Research appears very positive for the short term future of luxury home sales. 

Million dollar homes are selling in many markets for steep discounts.  As mentioned in a previous post, this can largely be attributed to low interest rates on jumbo loans, which have dropped significantly over time. 

In cities such as San Francisco, $1 million dollars in 2007 bought about 1150 square feet; now it buys an additional 400 feet.  In Las Vegas, time on the market increased from 220 to more than 260 days, and the size of the house available for $1million has increased by 50% to 5400 square feet.  In South Florida, homes listing for $1 million and more average well over 100 days on the market. One particular waterfront home has been waiting for a buyer for almost 4 years. 

Here on the Outer Banks, there a plenty of $1 million dollar plus homes that are on the market.  However, with interest rates the way that they are, this inventory is steadily shrinking.  Now may be the time to buy that Outer Banks dream home.

Distressed sales made up 29% of all residential properties sold in the Outer Banks in the month of July.  Distressed properties include short sales and bank owned homes.  Bank owned homes made up 20% of all sold residential homes for July. 

Distressed properties tend to push real estate values down.  An increase in distressed property sales can be viewed from a positive light because the sales demonstrate that buyers are coming back into the market, and as the distressed properties are cleared out prices can stabilize and eventually grow.

Housing affordability has continued its increase in August.  According to industry experts nationwide housing affordability during the second quarter of 2009 remained around the highest level since the series began 18 years ago.

The Wells Fargo Housing Opportunity Index (HOI) showed 72.3% of all home sales in the second quarter were affordable to average middle class Americans. “The increase in affordability-along with the $8,000 federal tax credit for home buyers is stimulating demand, particularly among young, first-time buyers,” said NAHB Chairman Joe Robson.

So where is the most affordable place to live in America? Indianapolis is considered to be the nation’s most affordable city to live in America.  Indianapolis has top the list for 16 consecutive quarters. 

Another positive report about the US Housing Market was released yesterday.  Home sales have grown in the second quarter in 39 states.  The quarterly sales rose 3.8% from last year.  This left the adjusted rate at 4.76 million over last year’s 4.58 million. 

Throughout the country foreclosures and other types of distressed transactions accounted for nearly a third of all second quarter sales.  Lawrence Yun, the trade group’s chief economist, called the sales increase “a hopeful sign for the economy.”

Pending Homes Sales of previously owned US homes rose at a faster-than-expected pace in June according to real estate experts. 

The National Association of Realtors also reported that its pending homes sales index rose significantly in June for the fifth month straight.

“Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who’ve been on the sidelines,” said NAR chief economist Lawrence Yun.

Another indicator that the housing market is turning around!

Coldwell Banker recently ranked highest of all the national real estate brands in seller satisfaction, according to the Home Seller Survey from JD Power & Associates. President & CEO Jim Gillespie takes a moment to talk about this prestigious recognition.

Click here to watch Jim’s video.

Pending homes sales have been steadily rising over the past four consecutive months. 

The rise is due partly to the fact that the housing is becoming more affordable and buyers are discovering that now is the perfect time to buy a home.  The First-time buyer tax credit is also boosting home sales. 

The Pending Home Sales Index is a forward-looking projection based on the number of contracts that were signed in a particular month.  In May, this index rose .1 percent to 90.7 from an upward shift from 90.6 in April.  The last time this index increased four consecutive months was in October 2004. 

Lawerence Yun, who is the chief economists for the National Association of Realtors, warns that there might be delays in the number of contracts that actually go into closing.  “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed  or falling through from the application of new appraisal rules for many transactions.”  Yun went on to say “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards.  Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.” 

Call your local realtor today in order to take advantage of these first time home-buyer tax credit.  There has never been a better time to buy.