As I prepare for my Tuesday Real Estate sales meeting, I remember a factual truth: Real Estate is a passion of mine. Without truly following my passion for real estate I would be incomplete. I believe helping people with Real Estate is a God given purpose of mine. I’m humbly thankful for every blessed opportunity to help someone. That understood, I have 5 pieces of advice that I offer based on my experience as a licensed real estate sales person. Here are a few things a non-professionals should know about the real estate market.
Real Estate Advice Point 1: When Selling A House Trust The Professional
The real estate market is challenged across the country. Fact remains as unemployment hovers in the 10% mark with real unemployment around near 15%, many people without homes don’t have the funds to buy one. Even TARP Funded Banks still have tightened lending requirements. Often time real estate regulation change, which impact everything from up front PMI to how you qualify for a loan.
With the current market conditions considered, it is even more imperative that you trust the real estate professional. Jordan Sparks of American Idol fame in a song apply titled “Faith” says it best “Have a Little Faith”. After you’ve selected the real estate professional, you must have faith that they are doing their job to best serve you. A good real estate agent, will put in the work to keep you abreast of progress and status of your property.
Real Estate Advice Point 2: A Realtor Open House
When selling a house is a tough market, its best to have other professional give tips on selling your house. If your agent asks you to allow them to have a real estate agent showing, you should jump at the opportunity. You will get valuable advice from experts that are familiar with your market. This real estate professional advice will certainly cut your homes time on the market, an can help stimulate buzz on your home. You can and will get feedback on what improvements can help your house sell. You might get an agent that falls in love with the house and finds the perfect buyer for your home.
Recently, I went on a real estate agent open house tour. We visited 3 real estate listing and gave feedback on each house. The first house was a soon to be short sale. This property was overpriced, dated, and in dilapidated condition. The second piece of real estate was in decent condition, but was not special for the price. The third piece of real estate we reviewed was mint condition and under-priced. All three houses were within 10 minutes of each other and priced within $25,000 of each other. The third house was a huge bargain with a pool. Every real estate agent that saw the house salivated like Pavlovian dogs. Within 2 days the 3rd house was under contract with 4 backup offers.
Real Estate Advice Point 3: Market Enthusiasm
In bleak times, real estate still sells. Many will have a feeling that things are challenged, so do not expect much in real estate. The book Guerrilla Marketing buy Jay Conrad Levinson published in 1998 touches on how to effectively market in a troubled economy on a limited budget. The point is troubled times happened in the past just as they have happened now. With the proper enthusiastic plan you can an will succeed in selling your home.
One point I hold true is one Mr. Levinson made on Inexpensive and Effective marketing. Levinson spoke to a letter he sent out to customers. In the letter he stated “My fees are not low. But in a recession, you can’t afford to take chances with less than the highest possible quality”. I hold that true now as well. There are many agents or discount brokers that will not charge you as much with recession prices. However in the real estate market, time is money. If many real estate agent, fee is lowered their focus on your needs are lowered as well. You should pause and consider the level of enthusiasm to your property in the current market.
Real Estate Advice Point 4: Good News For Buyers
There are three things every buyer should remember when addressing the current market.
1) Rates are low
2) Prices are low
3) Inventory is high
This is a great time to buy real estate. The reality of the current real estate market is that the market has take a major blow. As the housing bubble burst, it left banks with inventory. Banks don’t want to be in the selling real estate business. Banks want to be on the lending on real estate business. So with consideration of the low right, and great prices the market is good. When you ad the variety of house available from new real estate to existing home, inventory give buys plenty of options to consider.
Real Estate Advice Point 5: Good News For Sellers
1) Qualified Buyers Will Purchase
2) Cut Your Losses / Make a Profit
3) Slightly Less Inventory
With this great real estate market, qualified buyers will buy. I purchased my first solo investment property in December many years ago. So personally, I know even in the middle of winter a qualified person looking for a great deal will buy.
Many home owners are upside down on their mortgage (i.e. they owe more than the home is worth). In addition, some TARP Funded Banks still do not want to work out loan modification. In cases with unwilling or unable lenders, consumers can cut their losses and make a profit. If at the market’s peak you bought your home for $500,000 three years ago with a 3 year ARM (adjustable rate mortgage). Today your home might be worth $250,000 bases upon real estate foreclosures and short sales. If you can keep your home, its always better to keep the depreciating asset to write off against your taxes. If you are in financial crisis, you can cut your losses and start to rebuild. With properly manage credit and a plan, you will still be in a good position to purchase a home. Fact is even while the current economic trend point upward, there will be great options out there for you to buy. Not even considering Lease Option Agreements.
The big picture in real estate is you should be informed. Buyers and sellers alike need to do there research. Get a qualified real estate sale person to represent them and trust the agent. You can and will be blessed with your hearts desire if you stay focused and disciplined as you work toward your goal.