1. Price it Right From the Start

It is crucially important that we try our best to price our listings correctly right out of the gate. We know it is difficult in today’s volatile market to place the correct price on any property. However, the consequences to the seller if we don’t do this can be severe for two reasons. First, in a market where prices continue to decline, any additional time taken to sell the home only means a lower selling price. The other reason: research has shown that properties that have experienced price adjustments wind up taking longer to sell and sell for less money no matter what the current market conditions are.

2. Realize that if your listing didn’t sell this spring, it’s not priced correctly.

We are seeing strong buyer activity so far this year. We realize the first four months can’t favorably compare to the same time last year when the Home Buyer Tax Credit expired. However, pending sales (houses going into contract) have increased nicely month to month. If your listing did not sell over the last few months, it is time to sit with the seller and discuss a price correction. In today’s market, being priced competitively is not good enough. The price must be compelling!

3. Know that delinquencies are decreasing, but REOs will increase.

Headlines are reporting that foreclosures are dropping dramatically. The ‘good’ news is that the headlines are 1/2 right. The number of homeowners falling 90+ days behind on their mortgage payments is, in fact, decreasing. However, we still must clear the large inventory of homes already in the foreclosure process. That process has been delayed by the legal system. These distressed properties WILL BE coming to market – just a little later than originally projected.

4. Window of Opportunity

5. Be confident that America’s belief in homeownership is still strong.

There were two different surveys recently that confirmed the American public still believes owning a home is a good investment.

1. A Pew Research Center survey reported that 81% of Americans still believe that owning a home is the best long term investment a person can make.
2. Fannie Mae released their National Housing Survey which showed that more Americans believe that homeownership has greater potential as an investment than any other traditional investment vehicle (stocks, bonds, mutual funds, etc.).

6. Preach the difference between COST and PRICE.

Unless they are buying all cash, a potential purchaser should consider the COST of a home more than the PRICE of a home. Obviously, the price is a major component of cost. However, mortgage rates and other expenses associated with attaining a mortgage also impact cost – what the buyer will pay every month. Interest rates and other mortgage expenses are projected to increase later this year. Make sure your buyers understand this.

7. GO ALL IN!

The best advice we can give right now is to GO ALL IN! We are at a turning point in real estate. We, as an industry, are going through a portal from a very difficult market to a market that will return great financial reward to the true real estate professionals. But you need a special passport to pass through this portal. The cost of the passport?

• You must know what is happening.                                                                 
• You must know why it is happening.
• You must be able to simply and effectively communicate both these points to buyers and sellers

Source: KCM Quick Tips

Please contact me to discuss these Real Estate tips and others!

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