Selling in 2011

Speculation, media reports and common gossip has lead, in my opinion, to a more volatile market then necessary. The constant onslaught of negative media has had a direct effect on the Real Estate market on a National and Local level. So what’s the truth in it all? Where does the market actually stand and what can we expect moving forward?
Reporting from the front lines I can tell you that the Real Estate market is not as dreadful as generally reported. Homes are selling, people are buying and banks are lending. In December alone last year I closed 5 transactions. The important factor of that stat however is not the amount What Is Considered Furniture of homes sold in a short period, but the types of transactions involved. Of those 5 closing, one was FHA financed, two were conventional loans with 25% + down and two were relocation clients. What can we take from this information? That homes are selling, but only when sold correctly.
What do I mean by “correctly”? As I break down each of these sales they all have one thing in common – they were all priced (or sold) according to market conditions and true “Fair Market Value”. Selling at Fair Market value allows FHA financing to take place as there will not be appraisal issues. It allows buyers with significant cash down to move forward as they will be aware they are getting a fair deal, and if appraisals are never more of an issue then they are with re-lo, if these homes weren’t priced correctly they would have never closed.
A large problem in today’s market, and in my mind the most detrimental problem, is the lack of acceptance sellers have of the times we are in. 2005 is long behind us, but many homeowners have continued to base their perceived values on stats from the bubble. Thus resulting in a stagnant market.
If sellers would become more realistic on a whole, we could turn this market around in a year. Now I understand, many sellers can’t sell for fair market value. They are simply “stuck”, upside down on their mortgage with limited options. In my opinion these homeowners should simply take their homes off the market if they are unable to sell for fair market value. Realtors are to blame for this as well. Many agents will “buy” a listing by making false Luxury Apartments In South Delhi promises of what a seller can expect. This leads to even more severe consequences as seller becomes frustrated with lowball offers, but refuses to sell for true value. In turn buyers don’t move on properly priced homes because they feel if they wait a bit, the over priced seller will eventually drop – but they never plan to. By not cooperating with market conditions our buyer base depletes, and out of frustration many buyers simply give up.
Both buyers and sellers have false hopes in this market, and that is the main problem we are facing. Buyers want more home, sellers want more money. There has yet to be a full compromise between buyer and seller on a broader scale. Without compromise we simply cannot rebound. For this market to truly bounce back we all need to face reality.
If you are interested in selling in this market be sure you work with an agent who is both honest and knowledgeable about TRUE market conditions, and more importantly, be honest with yourself about your homes value.
And please, always keep in mind – “Current market sets value”. There is just no getting around it.

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