Let me start out by saying that if I knew what the future of real estate was going to bring this year, I'd be doing something other than sitting at my desk typing this post. Even the small community of Champaign County is influenced by the vast global economy and the variables are often too complicated to sift through and make a definitive prognostication.
But, there are a few things that remain the same year after year. First of all, real estate is a great investment. The current market offers some unique buying opportunities and in the long term, real property has always been a safe bet. There is still a backlog of houses on the market and there are some real bargains out there right now.
Interest rates are still low but don't be confused by the recent Fed moves to lower the discount rate. Mortgage rates are influenced by the Bond Market so a change in the discount rate does not necessarily translate into a change in the mortgage rates. The varied and confusing array of mortgage options has also dwindled. More traditional loans requiring a downpayment and good credit are becoming the norm. On the other hand, there are some great programs, especially through the FHA that allow funds for the improvement of properties to be financed or even forgiven for certain owner occupied homes.
If you find yourself in the position of having to sell your home because of an employment or life change, remember the basics. Correct pricing is the key. The appraisal that was done for your home equity loan two years ago is probably not valid anymore. You will need a current market analysis and a realistic attitude. You will also need to market and stage your home so that it stands out from all the other houses on the market. That may mean renting a storage unit and clearing out all the clutter, painting that purple bedroom and making the kids keep their rooms clean. These are things that seem like a lot of work but, they will make a difference. With a smaller pool of buyers looking for a new home, you need to make the most of every opportunity to sell your home. Also, don't wait! Buyers who are out looking at homes in the snow and ice are probably real buyers, not just lookers. If you wait to put your home on the market, you may miss a ready and willing buyer and you will also face more competition in the marketplace.
The February sales numbers will be in this week. If you need information on pricing your home, call me and I will be happy to share the statistics with you.
Thursday, February 28, 2008
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