When Are Prices Going To Stabilize?

You could ask that question to as many people as you like and you would most likely get as many answers. If you plan on buying or selling real estate it's important that you know the answer to this very important question. If you're a seller and don't know the answer how will you know where to price it so that it sells? If you are a buyer and don't know the answer how will you be able to differentiate between a home that is appropriately priced and one that's not. I'm sure some buyers and sellers believe it's as simple as "some things sell and others don't". Unfortunately for them that's rarely the case.

Every week I work with both buyers and sellers who aren't sure where they should price a home for sale or how much to offer on one that is for sale. It's my responsibility to show both buyers and sellers what trends are occurring in the market place and help them with Positioning. Positioning is more than price alone. When real estate is properly positioned it's likely to sell in the time-frame set by the seller and at the most the market will bear. The thought that you can price real estate above market trends and "take offers" is not cutting it in today's market. (Buyers are making offers only on things that are already priced competitively) About 8 percent of all real estate in our market is selling and in some markets we have 3+ years of inventory. So if you intend to sell real estate, and not just list it, you must position your asset appropriately to give it the highest probability of selling.

If you are a buyer and are worried about prices declining or you're not sure what you can afford it's really important that you understand all the market trends and dynamics as well. It will help you differentiate between all the choices you have in today's market. I realize it can be confusing when you look at the varying prices for similar or comparable homes. You can't figure out why one is priced higher than the other and it just doesn't make sense. The good news is it can make sense. In order for it to make sense you will need to review recent historical sales data and combine it with today's market trends. In some instances it may be appropriate to pay full asking price and in other instances the information that has been gathered and reviewed will indicate a home is worth an amount less than asking price. Once the value has been determined by the buyer it's time to position the offer so that it is well received by the seller. This too is more than price alone.

If you would like help pricing real estate to buy or sell please let me know. I'd be happy to help.

What Should I Do?

The title of this post was used because it's the question I've been asked most frequently here lately. I remember a few years back when the question was "how much over asking price should I go to make sure I get it?" The funny thing is the answer to both is the same; You should evaluate all relevant facts for what you are considering and come to a conclusion that best suites your needs. Easy enough right? Well to put it another way, whether you are considering buying a home, selling a home or are considering making an investment in real estate many things must be considered to determine what will be best for you.

Some things you might consider are; What are the short and long term effects of what you're considering? What risks are involved for acting or failing to act? If you're buying you might consider things like; How long do you plan to live in or hold the investment you are about to make (the best financing options will differ depending on your answer)? If you're selling you will have to compare the alternatives to selling; i.e. could you rent it out and if so what are the benefits and drawbacks. Could you offer owner financing or would you be better served to sell now or later? Each alternative can have positive long term effects but does it fit in with your objectives?

So if you need help figuring out what you should do please give me a call or email. I'll be happy to assist you with determining what is best for you.

Until next time.