HAPPY NEW YEAR! The old year has gone... what is in store for us in 2012 in terms of Real Estate? In the year 2011, the Real Estate market has experienced lowest mortgage interest rates in decades. This has played a major role in a homebuyer's decision in purchasing a home. In the latest study released by Mortgage Bankers Association or MBA entitled, "The Great Recession and Attitudes Toward Homebuying" reveals that home buyers still think that now is a good time to buy. According to Gary V. Engelhardt, Professor at Syracuse University, "Despite high unemployment and slow economic growth, the bulk of American households believe that now is a good time to buy a home." He also says that the profile of homebuyers is young, educated, white and Hispanic households.
Lawrence Yun, Chief Economist of National Association of Realtors (NAR) predicts, "with housing inventory down significantly in 2011 as compared to 2010, home prices could easily turn up in 2012." This is good news for the home sellers. Lots of buyers in the current market with low inventory creates high demand. Waiting to sell will allow supply to build and more competing homes to go on the market.
One area where home buyers can look for homes are the Inventory in Expired Listings. Searching in Expired Listings may prove beneficial to a potential home buyer. But, they also have to understand the details why a property did not do well in the market.
Why Listings Do Not Sell...
Nearly 15% to 25% of all listings do not sell. The market did not accept market effort, the price, the condition, the location or a mix of all. The seller has control over two of these things: Price and Condition. While the Realtors control one: Marketing Efforts.
Location:
No one can do a thing about the home's location, except accent the positive and minimize the negatives within the various marketing strategies to be implemented.
If your listings have expired, you have a decision to make:
- Decide not to sell.
- Work with a top producing agent who knows the market.
- Lower the price to the current market.
Condition:
First impressions are lasting impressions. Homes that are not prepared first won't show well as compared to other properties. Getting a home in good condition does not make it worth more, but being in poor condition makes it less desirable.
Some tips to make your Home in Showing Condition:
a. Remove all items and furniture that you can live without.
b. Have all rooms painted in neutral color. The kitchen and bathrooms are reference points and must be in excellent condition. They show age, wear and tear more than any other room in your house.
Price:
Overpricing a home is responsible for most expired listings. The wrong price attracts the wrong buyers. It creates a bad reputation for the house in the market place and makes properly priced homes look even better. If the property is priced right the first time - it will sell.
Marketing Efforts:
As a Realtor, online marketing is our first priority. The internet is the first place more and more homebuyers are beginning their search for a home. As per National Association of Realtors, 88% of the home buyers used the internet in home search. These numbers will only increase with the Internet reaching more and more households. Nearly 70,000 new people are getting Internet access every day. Studies also show that the average home buyer is also getting younger and increasingly grew up with the Internet.
In addition to the huge audience of excellent prospective clients, the Internet offers both convenience and cost effectiveness that traditional media cannot. Web sites are more engaging and informative than even the best brochures. Emails make it easier and cheaper to keep in touch with existing clients.
When listing your home, it is very important to work with an experienced Realtor who would be able to share his professional expertise; get you the best price for your home; who can provide you would endless contacts and network; and take out the headache of doing the paperwork for you. And of course, he should be able to close the deal at the least possible time.
If you want to work with a Realtor who has a proven track record in selling homes, please don't hesitate to contact me.
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