TRUTH OR CONSEQUENCES!

It’s more difficult than ever to realistically and successfully price your home for sale. Many economic factors affect your pricing decision. Agents present you with the facts, but the final determination of asking price is yours and yours alone. So contact a representative and familiarize yourself with the following criteria.

There are more homes for sale now than in the past. Larger inventories exist mainly because sellers waited to list, trying to catch the top of the market. Now they’re trying to sell before it bottoms out.

While still historically low, mortgage rates will creep up in time. Every rate increase disqualifies a segment of buyers for financing, negatively impacting your selling ability.

Besides higher interest rates, buyers are subject to stricter loan application requirements. Again, the higher down payments and credit scores needed for financing eliminate many applicants from your pool of prospective buyers.

Are there homes in your neighborhood that investors couldn’t “flip”? Then they are either vacant or listed below market value by owners who would rather take the loss than become landlords. Either way, these homes and foreclosed properties adversely affect property values of others in your community.

This is reality. Expect your REALTOR to be frank with you about it, and learn that trust, reason and determination will create a sale, even in a down market.

Call me if you need assistance with your real estate decisions. If you prefer,
Email me at donkingsley@kingsleyrealestate.com. I will be happy to share my knowledge with you at no cost or obligation.

STEPPING UP TO DOWN MARKETS!

Remember the ancient curse, “May you live in interesting times”? While many are indeed cursing the current real estate climate, others see opportunities. In a “soft” market, the short-term options dwindle, but seasoned investors in for the long haul are positioned to take advantage.

In the words of billionaire J. Paul Getty, “Buy when everyone else is selling and hold until everyone else is buying.” Just like the stock market, more money is often made in a down cycle than in an up market.

Slower times encourage sellers to be more open to negotiation. Combine acceptance of lower prices with currently low interest rates, and you’ve got the perfect recipe for bargains. Real estate is continually cycling, and it’s guaranteed that prices will rise again. The time to get in is now, before that begins to happen.

A “buy and hold” strategy works in this market, while your property appreciates. While you wait, consider leasing it. The property can pay for itself with rent collected, and an investor that can pay off a small mortgage is in an excellent position indeed.

Learn from your REALTOR and tax advisor how a “1031 Exchange” can greatly reduce your tax liability when it does come time to sell your investment. Now is the time to get in, but be sure to know how you’ll get out, too!

Call me if you need assistance with your real estate decisions. If you prefer, Email me at donkingsley@kingsleyrealestate.com. I will be happy to share my knowledge with you at no cost or obligation.