Regardless of the causes, most areas around the country are experiencing what is commonly referred to as a “buyer’s market.”  That term might make sellers squirm, but for those purchasing a home, lower prices are just the starting point for negotiation these days.

During the recent “boom” years, buyers often accepted a property “as is,” and asked for few concessions, even forgoing inspections and appraisals in an attempt to avoid being dumped for the next qualified buyer in the queue.  Now, however, buyers are in the drivers seat and they know it, insisting on a variety of terms in their offers.

The most popular demand now seems to be the “home warranty,” whereby the seller purchases a one-year service contract to cover any unexpected system and/or appliance repairs.  Of course, this is on top of insisting that sellers pay for all needed repairs exposed by an inspection before closing, or at least an allowance paid to the buyers to cover the expenses.

Just one inspector doesn’t seem to be enough, either.  Now buyers are looking more closely at lead and radon levels, roofs and foundations, and looking into inspectors who specialize in these areas.  Sellers find they need to be more flexible, or the buyers will simply move on to the next seller in the queue.  Now is the time to boost your purchase power.

If you are in need of real estate guidance, please feel free to call me and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

Planning to sell your home soon?  Do you know how much equity you have? When preparing to sell, determine the amount of equity received from the sale - before marketing your home. 

Equity is calculated by deducting the amount you currently owe from the present value of the property.  The first step is to make a determination of present value.  This can be done in two ways. 

Ask your Kingsley REALTOR® to perform a “Comparative Market Analysis,” showing the recent sale prices of other homes similar to yours.  The purpose is to help you arrive at a reasonable selling price for your property.  Another way to establish the current value of your home is to order a certified appraisal, an unbiased evaluation of the “fair market value” of your home.

Now, subtract your current loan balance from the present value.  What remains is called “equity,” the part you get to keep upon the sale of your home.  It should be carefully guarded from low offers and bargain-hunters.

Your best protection against loss of equity is the representative that you choose.  It is the agent’s responsibility to attract qualified buyers, and negotiate the highest possible sale price.  As your representative, the agent has a fiduciary obligation to represent your best interests.  The benefit to you is the enjoyment of the highest possible amount of equity.

If you are in need of real estate guidance, please feel free to call me and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

You don’t need a crystal ball to try to predict the future of the real estate market.  Every time there is a downturn, an upward trend always follows.  The best course of action is to look at the causes, and make decisions based on unbiased facts and incontestable history.

As the choice of loan options grew these last few years, consumers could buy a home more easily.  Wall Street took notice of all the hot action in real estate, and investment firms were able to shift the ownership of mortgages to their managers and clients.

Then about three years ago, the market began cooling, as incomes did not increase at the frantic pace that home prices did.  Investors had created an atmosphere of unrealistically high appreciation.  The perfect storm was brewing.

This cycle of up and then down seems more drastic now, because we enjoyed a longer than usual boom of activity, a full decade of it between 1995 and 2005.  But demand still remains high, and although rising slightly, our historically low interest rates also help to fuel property purchases.

While there is no such thing as a national real estate market, we should be seeing improvement across the board as 2009 draws to a close.  Our local area continues to see positive real estate transactions, not as turbulent as other parts of the country.  As I’ve advised in the past, if you can, it’s wise to buy now - before the ball lands back in the sellers’ court.  Talk to a REALTOR® from Don Kingsley Real Estate who can advise you on marketing conditions in our area.  Consulting with an expert will benefit both a buyer and seller. 

If you are in need of real estate guidance, please feel free to call me and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.