Buying & Selling Property & Real Estate
Despite the housing market trend, real estate transactions continue along. Individuals with a house for sale can do several things to make the home more marketable. The major consideration for most buyers is pricing.
People have been conditioned by economic times to demand, in some cases, more than they are paying for. Subsequently, a buyers and sellers market at the same time can be a contradiction. For property to sell there must be a demand. Inventories are up, and the demand for various reasons, is down.
An ocean front condominium is still in demand, but financing, asking price and a possible return on the investment, are all considerations. The supply is not in line with demand because of bank foreclosures. The market is overwhelmed with vacant homes. There is a ripple effect of course; foreclosed homes bring down the market value of surrounding houses.
Buyers are looking for desperate sellers, ones trying to stay ahead of repossession. The market value and the property’s actual value are far apart. Sellers finding themselves in this predicament have several options. Owners can negotiate a short sale or a deed in lieu of foreclosure. To get the market back on track the desperation factor must be removed.
Property, such as a bungalow for sale close to the ocean a few years ago was sold well above actual value. The price was established by desperation. Buyers bought into the “location, location, location” mantra. Families and individuals had to have the property, causing an auction like frenzy. Price bidding drove the sale price up but not the value.
Individuals with property for sale today, regardless of the value, have to price the home based on market value. This means many houses will sell for less than the debt owed. This reality must be considered. Attempting to sell a property for more than the market value will end in failure in today’s market.
The financial institutions are setting the value because of the massive inventory of foreclosed homes. Today, new buyers want all the amenities. Many are buying with the intention of actually making the property their home. A few years ago, that same property was purchased with resale value in mind. Sell to the buyer not the markets. People more than ever want a home today not just a piece of real estate.
Buyers now in some cases are expected to have down payments to purchase. Banks are now requiring individuals have a stake in the game. Location is still important, but having to put 20 percent down has lessened the demand for location, and increased the demand for a bargain.