As we head into the new year and the uncertainty with the economy and housing sector, we will experience a little bit of the past and a possible light at the end of the tunnel scenario. After a number of years of scrooge-like underwriting, banks and lenders will make mortgage loans less stringent. This in turn will give the market more of what we need, qualified buyers. This is good news for those homeowners contemplating selling their home in 2012.
Homebuyers will still control the housing market heading into the new year. Most buyers today are patient and have accumulated the knowledge this patience provides them. They are very much aware of the housing activity in the neighborhood they have chosen to live in. From the sellers perspective, if your neighbor’s home is a bank owned property, but all of the other homes for sale in your neighborhood are not, you don’t have a problem. However, if most of the properties are bank-owned or short sales, this is more problematic, because of the fierce competition these distressed homes cause on the market.
Prior to the housing bubble, appraisers would often ignore these distressed homes. These same appraisers now pay close attention to the foreclosures and short sales that have recently sold and are currently on the market. Sellers have to step into the buyers shoes and ask themselves “Why would a buyer pay more for your home than they might for a bank owned or short sale”? Sellers have to scrutinize all aspects of the home selling process.
Examine similar homes that have sold in your particular neighborhood over the last four months. Preferably, the list should consist of homes with in a quarter to half mile radius. Sellers should realize that identical homes can vary by as much as $25,000, depending on physical barriers. One home might back up to a quiet park, while the other might back to a busy street. Value’s between the two will differ. Compare apples to apples.
The bottom line, price your home correctly. No factor is more important than price. Here’s a common example that happens often, the average price for your neighborhood is $400,000, but you consider your home the best on the block and want to be compensated for all of the hard work and price it at $425,000. The exact house around the corner needs carpet, new appliances, paint and a new lawn is priced at $375,000. How many upgrades can a buyer purchase for the $50,000 difference in asking price. This market is non-forgiving, listen to your real estate advisor and price your home correctly. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my other informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.