Real-Estate Tips from a Mega-Broker to the Stars
Asking Price Is Critical – Avoid Shooting For the Moon
Sure, when it comes to one-of-a-kind mega-home properties, the sky might very well be the limit for price; but being overly aggressive in establishing an asking price for your home can have serious consequences that could prevent you from reaching top dollar. Obviously, you want to leave room to negotiate, but hoping to find that one buyer who will pay your unrealistic price is a risky proposition.
In the past, “testing the market” to see what offers you might get had no real downside. But with the advent of ubiquitous real-estate websites that offer listed property information to the general public, you can no longer afford to just let your property sit there and wait to see what happens. As time passes, buyers perceive unsold property as stale, which will not help you maximize your selling price.
If you want to test the market, just reach out to the brokerage community in your area. They’ll help you get a read on how fast properties are selling and at what price. Don’t list your property outright, though, because once you do, the clock starts ticking.
Making an Offer? Put It in Writing
So, you’ve found the home of your dreams and would like to make an offer. My advice – always put it in writing! Do so for two reasons – to avoid future misunderstandings, and, more importantly, to convey to the seller that you are a serious buyer.
Real estate numbers due out Friday
The Greater Rochester Association of Realtors will release fourth-quarter and year-end results Friday for its 11-county coverage area.
Home sales have increased in the Rochester region each of the past three quarters in 2012, according to local real estate data. The median sale price also increased during the past three quarters.
Home building in the Rochester region is also reportedly rebounding, according to the Rochester Home Builders’ Association, which will also report its 2012 numbers.
Real Estate Watch: Housing market is recovering, not booming
U.S. housing markets are in a recovery. But the rebound from the depth is modest, and how long the housing recovery will last is anybody’s guess.
Evidence of an upswing is so plentiful that Rick Sharga, executive vice president of Carrington Mortgage Holdings, a real estate company in Aliso Viejo, Calif., says “virtually every metric” points to a housing recovery.
Specific numbers vary, as always, from one month and one locale to the next. But sales of both brand-new and existing homes are up, prices are up, residential building permits are up, and sales of bank-owned foreclosure properties are down.
“A market that was at an incredibly low point has stabilized and is showing signs of getting better,” Sharga says. “But it’s all relative. We’re not looking at a boom. We’re looking at a slow and steady recovery.”
That caution stems in part from a few “hidden aspects,” to use Sharga’s characterization, that lurk with the flurry of positive numbers.
One is that all-cash, investment-oriented buyers purchasing homes to hold as rental properties continue to close a large proportion of home sales transactions. An investor-driven recovery isn’t problematic in and of itself, but Sharga questions whether the current momentum can be sustained without a resurgence of first-time and move-up homebuyers, who historically close the bulk of home purchases.
“Your average homebuyer really hasn’t come back into the market in a meaningful way,” Sharga says.
Another concern is that upticks in building and foreclosure activity on the supply side could create a significantly larger inventory of houses for sale a year or so from now. That “could have an impact on pricing,” Sharga suggests, if more traditional buyers don’t return to the market to snap up those additional homes.
When looking at the housing market, nearly every indicator is showing positive signs of improvement: from sales of existing homes, to first time home buyer involvement, to commercial property transactions, the numbers are arguably better than they have been in years. The big questions is will this rebound continue, or is there some new crisis that will derail the building prosperity in the real estate market? Let’s keep a positive outlook and plan for continued improvement.