National Association of Realtors reported last Wednesday that sales of existing homes dropped 3.8 percent in June, the slowest pace since November 2002. The median price of a single-family home rose by 0.1 percent and the price of a condominium increased by 2.6 percent when compared with a year ago - the first price gain in 11 months. The declines in existing home sales in June covered all parts of the country. Sales fell by 7.3 percent in the Northeast, 6.8 percent in the West, 2.8 percent in the Midwest and 1.7 percent in the South, analysts predict prices will fall as inventory grows. So, as more and more buyers are waiting to see the prices hit bottom, there is more and more inventory, downward pressure on prices make sales start to pick up, the problem with the "wait and see strategy" is you don't realize you have hit bottom, until things start to pick up. So, What does this mean for today's seller? What will it take to make your house the one of the possible 7000 or so on the market today that will sell this week?
1: First you have to get the best Realtor, someone who knows your neighborhood and has a solid marketing plan. With a good web presence for maximum exposure. 2: Under price your property to create an artificial seller's market. Aim to price no more than 5% below market value. You will attract more buyers and be the pick of the crop. The result should mean you sell faster and probably for a higher price than if you to start high and reduce. 3: Be flexible. Buyers will want to negotiate terms. Be as flexible as possible with serious buyers. 4: If you can't be the cheapest house on the block, you have to be the prettiest, you need the WOW factor!
What do buyers want these days? Just turn your TV on, the American television audience is obsessed with shows on buying, selling and redecorating their homes. There are even entire channels devoted to Real Estate. So, to shed some light on America's fascination with Real Estate and Decorating shows,
Rich talked with Betsey Hart. Betsy is a television producer and has worked for the Fine Living Channel's "
Sheila Bridges Designer Living" and "
Design Therapy". If you don't think these shows make buyers well informed:
1: Flip This House make buyers aware of costs for renovation. It is not hard to make a crummy house look good: Savvy buyers know how easy it is to do cosmetic work. 2: Shows have opened people's "designer eyes". People appreciate color and design elements. People use the show as a resource tool. 3: The shows use the popularity to develop relationships with vendors. 4: Not everything on the show is real. Lots of things are staged, real time is boring! 5: Not everything that looks good in person translates to a television show. Color is often used because it pops on the screen. 6: Additional lighting is in place. Often people overlook lighting when decorating and it adds so much.
This weeks Real Estate Insight: If you are not the best-priced house on the block this season you had better be the prettiest. Savvy buyers have been watching the market and know a well priced home and thanks to the proliferation of shelter and decorating TV shows, if you are expecting top dollar they expect to be wowed!
