MAKING IT AT THE TOP
You may be hearing that things are improving in the residential real estate market, and while that is true, not every area is experiencing the euphoria yet. Even where sales are making gains, it often still depends on the ranges of listing prices - bargain foreclosures, mid-range homes, or high-end properties.
Between the economy and the credit crunch, this top 10% of listings is suffering, largely because lenders aren’t committing to financing such large loans.
As high-end prices will probably still drop, buyers who do qualify for financing have more power in negotiating these sales. However, seek loan pre-approval before you make any offers. Jumbo loans require larger downpayments at slightly higher rates, and qualification takes time.
As the seller of a luxury home, you may have to bite the bullet and undercut your competition, if you’re truly committed to making a sale. Use your agent’s Competitive Market Analysis to make your pricing decision, and if you can, offer to finance the deal yourself.
The painful truth in this high-end market is that recovery will take longer, so you shouldn’t hesitate to set a lower price and offer other concessions to make your sale happen.
For information on selling your home, call us, stop by the office or if you prefer, email me at donkingsley@kingsleyrealestate.com. I will be happy to share my knowledge with you at no cost or obligation. If you need help starting the process, call a REALTOR® from Don Kingsley Real Estate!
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June 17th, 2010
DEFINITELY MAYBE
Although less than ideal, sellers are seeing more “contingency” contracts, wherein the buyers make their offer contingent upon being able to sell their own home first to complete the purchase. If the buyers aren’t successful, their Offer To Purchase becomes null and void, potentially leaving the sellers at Square One.
A compromise has developed, called a “recall clause,” which is wording included in the contract that allows the sellers to continue marketing their home, even while under contract. If the sellers receive another offer, the buyers are granted a “kick-out” period - usually 72 hours - to respond by removing their sell-first contingency or by securing financing and completing the purchase.
Unfortunately, the chances are that most buyers who must sell first likely won’t qualify for another loan on the new property. If the buyers fail on both counts - selling and financing - then the sellers have the right to accept another offer from qualified buyers.
While this might seem to put the buyers at a disadvantage, the sellers must have some sort of protection against an offer that could tie up their listing indefinitely and perhaps never be consummated.
Consider including language in the contract that also requires the buyers to begin aggressively marketing their own home within a specified period. If the buyers don’t leap to action, the contract can be voided.
For information on selling your home, call us, stop by the office or if you prefer, email me at donkingsley@kingsleyrealestate.com. I will be happy to share my knowledge with you at no cost or obligation. If you need help starting the process, call a REALTOR® from Don Kingsley Real Estate!
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June 9th, 2010
You might think that the living room or family room is the heart of your home, but in the eyes of potential buyers, there are at least three other rooms that will demand your attention as you prepare to sell your home for top dollar. Avoiding improvements in the following areas may cost you a lot more than the small investment it takes to impress buyers.
For buyers, the kitchen is often the most important area, and while you may not need to replace your cabinets, refacing or just sanding and painting will go a long way towards improving their appearance. If the floor is in poor condition, consider replacing it.
In the bathroom, fresh paint and new flooring are also fine improvements, but your greatest payoff might come from simply investing a couple hundred dollars in a new mirror and vanity.
The laundry room is often overlooked when it comes to improvements, but buyers will respond positively if you install built-in shelving and storage. If your laundry area isn’t flooded with light, consider upgrading the light fixtures. While you’re at it, that fresh paint and new flooring wouldn’t hurt here, either.
Trust me that if these three rooms are bright, neat and clean, it conveys to the buyers that you are a responsible seller with pride of ownership, worthy of a full price offer.
If you need advice on preparing your home for sale, please call our office and speak to one of our full-time Associate Brokers. If you prefer, email me at donkingsley@kingsleyrealestate.com and I will be happy to share my knowledge with you at no cost or obligation.
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March 12th, 2010
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