Did You Know?

The Real Estate market is experiencing a stabilization period right now. So what does that mean?

Well the short answer - it's a Buyer's Market.

With more houses (inventory) on the market right now; Buyer's have lots of choices and they also have lots of leverage.  Knowing how to capitalize on that leverage is the key to saving a lot of money as a buyer and having your house stand out and sell quickly as a seller.

Suggestions to help navigate the current market:

STATISTICS ¹:  Harford County August 2006 vs. Harford County August 2005

• Sales are down 25.2% from last year

• The average selling price is 3.6% less than this time last year.

• Inventory of Houses active on the market is almost doubled from this time last year.

These numbers are consistent with the overall numbers for the state of Maryland during the same time frame.  So how do Buyer's and Sellers use this information to create a successful transaction? 

First, we all have to realize one thing: “We’ve shifted to a normal market where buyers can negotiate, where they’re no longer in a hurry.”   Once we get over that hurdle the rest in pretty painless.  Here are some tips for Buyers and Sellers to help close the deal.

• Sellers - shop around before you sell your own home.  Find out what's available around you and what incentives and pricing options are available.  A good Realtor will do this work for you.  If they don't provide you with a Competitive Market Analysis (CMA) then get a new Realtor! This is valuable information to assist you in pricing your home properly for the quickest sale.

• Sellers - offer incentives up front... closing cost help, home owner's warranty, buy down a loan, pay all taxes.

• Buyers - educate yourself on what is available around your desired area and what sellers are offering. Remember the seller has most likely already set the asking price at or below market value so the incentives offered will be your leverage in the transaction.

• Buyers - Open the doors for communication and negotiations.  Even though it's a buyer's market, you still have to negotiate and be flexible.

Home sales during the rest of the year will be lower than earlier projections as the market works its way through an inventory and price imbalance, according to the National Association of Realtors®.

David Lereah, NAR’s chief economist, said the most obvious effect in the near term will be with home prices. “A year ago we had record home sales and tight supply with buyers bidding over the asking price,” he said. “This year sales are slowing, homes are plentiful and sellers are negotiating. Under these conditions, we’ll probably see prices dip temporarily below year-ago levels as the market works through a build up in housing inventory.”

“This is a normal pattern during a market correction, but home prices should return to positive territory within a few months and annual appreciation will be slower than historic norms,” Lereah said. “Keep in mind that over time, home prices rise at the rate of inflation plus one-to-two percentage points – buyers in most of the country who plan to stay in their home for a normal period of homeownership can pretty well bank on those historic averages, but people who purchased last year with the intent of flipping are likely to get burned.”

* August Housing Statistics - Maryland Association of Realtors August 2006

When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace including price, financing and terms of competing properties. These are key factors in a successful sale of your property at the best price in the least amount of time..
 

Calculate your estimated monthly mortgage payments.

Mortgage Calculator