Even after you have signed a listing agreement with the agent of your choice, it is still important to keep abreast of changing market conditions and their effect on your selling strategy. Your agent should be in touch with you on a weekly basis—even if there are no new developments—to give you feedback from showings and to make sure you understand and are comfortable with the way your listing is being handled.

Your agent should review your asking price with you at least once every 30 days. A realistic asking price is based on recent activity in the market, and these days that means activity in the past 90 days. Underwriters are saying that they no longer accept appraisals which include comparable sales older than 90 days. Not long ago, a sale that was up to 180 days old was acceptable, and appraisers could sometimes use sales as far back as 365 days if they needed to. Now underwriters are reluctant to accept anything that is even 6 months back. This means there is even more reason than before to frequently adjust your asking price so it is in line with recent solds.

Keep in touch with your agent on a weekly basis if possible. There is no doubt that the market is changing all the time, and your agent has the resources to track those changes. As a listing agent, I keep in touch with my sellers on a weekly basis (we pick a time and day to talk) and update them about market developments in writing every 30 days in connection with a review of their price and market position. If your agent suggests a price reduction and has the facts and figures to support it (and most will), it is in your best interest to listen. Seriously consider a price reduction if your property goes even 30 days without an offer.

Be aware—every day, there could be new market conditions and therefore strategy changes to consider. For example, these days VA buyers are allowed 4% in concessions, in addition to seller-paid closing costs and pre-paids (which are often equal to 3% of the loan amount). The 4% additional concessions can be in the form of the seller paying off the buyer’s debts, buying a lease off, etc. One loan officer I spoke to said his office doesn’t even print these guidelines any more, because change is so frequent. As a listing agent I do my best to negotiate a contract that does not include these concessions. However often a buyer who needs concessions will realize he must agree to a higher sales price in order to get them. As long as he is simply cash-poor (i.e., not marginally qualified in other respects) concessions can be to the mutual advantage of the 2 parties. The best agents will make sure you know what your options are, as part of getting you the best terms, price and conditions that the market has to offer.

With the downward pressure on prices caused by increasing numbers of foreclosures on the market, I can’t stress enough how much it pays to prepare your home before going on the market.

If you can stand out in the crowd–have eye-appeal AND be well-priced–you CAN find a buyer. This is best done in the first half of 2011, while there are still strong comparables to bolster your contract price at appraisal. If there is a dip in prices this summer, it will affect appraisals for 6-12 months afterwards, since that’s how far back appraisers can go. So waiting might not help, even if prices go back up after the dip.

Get advice from a professional, but have confidence that what you are doing to increase eye appeal will totally pay off. Even the most business-like buyer (even one who believes he is most interested in buying a foreclosure) is ultimately emotional when making the final decision, and there is nothing like curb appeal and great photos online (staging!) to inspire action.

In the Hampton Roads area, if you would like names and numbers for stagers, please let me know and I will pass some along. Full staging is a great tool for sellers in this market. In conjunction with advice from an agent on which improvements to focus on (since you don’t have limitless time and money to accomplish them!), a consultation with a stager is invaluable.

Call or text me at 757.869.7070 if you would like more information.

KCM October 2010

This simple little chart from Steve Harney, industry expert, shows how buying at current interest rates pays off. Nationally, prices are about where they were in the end of 2003, before the housing bubble heated up. Yet interest rates are WAY lower! This means the very same house you could have bought in 2003 is now about $219/month cheaper! saving you about $2500/year in payments and interest, adding up to about $75,000 over the life of the (30 year) mortgage! Why wait to get in on this? Prices are low, the holidays are coming up, and there is an oversupply of inventory. Call me for more information!

I can’t say this any better–this post from the KCM experts all matches my experience as well. Take a look:

5 Reasons You Should Sell Your House TODAY!
by The KCM Crew on October 19, 2010 · 0 comments

Selling your house in today’s market can be extremely difficult. It is for that reason that every seller should take advantage of each and every opportunity that appears. Each fall, such an opportunity presents itself. This fall, that opportunity may be just too good to pass up.

Below are five reasons you should consider when pricing your house to sell in the next 90 days. Meet with your real estate agent and mortgage professional today and see whether it is the right move for you and your family.

1. Entering this time of year, the buyers are more serious.We all realize that buyers are not quick to pull the trigger on the purchase of a home today. There is no sense of urgency with the supply of eligible properties at all time highs. However, at this time of year, the ‘lookers’ are at the stores doing their holiday shopping. The home buyers left in the market are serious and are more apt to make a purchasing decision. Less showings – but to more motivated purchasers.

2. If you are moving up, you can save thousands.The Chicago Tribune stated in an article last week that sellers who want to ‘trade up’ should act now:

It could be a bigger house, different neighborhood or a better school district, but it comes with a higher price tag. Do the math; this might be the right time.

A home that was once worth $300,000 may now be worth $240,000 in a market where prices have fallen 20 percent. Wow, you think, the seller is taking a bath. But that seller may also be a prospective buyer who wants a house that once was valued at $400,000. With an equivalent market drop and a realistic listing price, that house may now sell for $320,000. So, in effect, the person is losing $60,000 on the sale of one home but coming out ahead $20,000 on the purchase of another.

Keep in mind the spread may be even greater. There’s a smaller pool of potential buyers for more expensive homes, so sellers may be more willing to cut their price to get a deal done.

3. Interest rates just fell again – to 4.19%.Professor Karl E. Case, the founder of the Case Shiller Pricing Index in an article in the New York Times last month actually did the math for us:

Four years ago, the monthly payment on a $300,000 house with 20 percent down and a mortgage rate of about 6.6 percent was $1,533. Today that $300,000 house would sell for $213,000 and a 30-year fixed-rate mortgage with 20 percent down would carry a rate of about 4.2 percent and a monthly payment of $833 … housing has perhaps never been a better bargain.

4. You beat the rush of inventory that is coming next year.Every year there is an increase of inventory which comes to market from January through April as homeowners put their houses up for sale in preparation for the spring market. As an example, here is the number of listings available for sale in each of those months in 2010.

January – 3,277,000
February – 3,531,000
March – 3,626,000
April – 4,029,000
You won’t have to worry about this increasing competition if you sell now.

5. You have less ‘discounted’ inventory with which to compete.This year, sellers of non-distressed properties have been given an early holiday present. With banks declaring a suspension on the sale of many distressed properties (foreclosures), there has been a large supply of discounted properties removed from competition. No one knows how long this self imposed moratorium will last. However, while it does, every homeowner has a better chance of selling their property.

Bottom LineIf you are looking to sell in the near future, there may not be a more opportune time than this fall. Serious buyers, great move-up deals and less competition from foreclosures creates the perfect selling situation. Don’t miss it!

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