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Pricing & Selling Your Home In The Current Housing Market
July 17th, 2010
Since the expiration of the
federal tax credit, there is little or less incentive for home buyers to make
the plunge. This notion makes it more challenging for current home sellers in
making a sale.
Home sellers may have to
price their homes more competitively so as to compete with other foreclosures
in the market. A large percentage of sellers are already cutting their asking
prices to lure potential buyers. 24% of home listings on the market as of the
first half of 2010 had experienced at least a price reduction.
Slashed prices are more
common in certain markets if compared to others. In
With the disappearance and
the expiration of the federal tax credit, a price reduction is the only weapon
available to home sellers in order to lure potential buyers therefore drawing
their attention.
Tara Nelson, a consumer
educator for Trulia.com says that currently, there are not a lot of perks for
buyers to purchase since there is no urgency. Mortgage rates have remained
relatively low for quite some time and many are not worried about missing out
on the opportunity to purchase.
Sit And Wait
Summer Greene, a real estate
broker for Better Homes and Gardens Real Estate Brokerage in
If it’s worth three to five
percent to wait and they don’t have any urgent reasons to relocate, they can
wait till 2011.
Housing Forecast For
2011-2012
Moody’s Analytics suggests
that the market should continue to fall right through 2011 and is scheduled to
bottom by spring of 2011. Celia Chen, senior director of housing economics for
Moody’s Analytics says from the 1st quarter of 2010 till 1st
quarter of 2011, home prices are scheduled to fall about 5%.
From the start of 2011 till
the end of the year, prices are expected to rise less than 1%. Prices are
forecasted to catapult and leap 4% from the end of 2011 till the end of 2012.
According to Chen, since foreclosures and short-sales are factored in the
equation of the market, it will prevent prices from rising rapidly for the next
few years.
Chen says that it’s not going
to make much of a difference even if you waited a year to sell the home given
what’s indicated above. What could possibly change in a year is the increased
demand and interest of home buyers which makes it easier to sell the home more
quickly.
Currently the market is being
pinned down by high unemployment and the sagging demand for housing. She hopes
to see the unemployment rate improve by 2011 which will hopefully result in
better demand for homes.
Being Competitive
If you decided that you are
not going to wait out the storm and have the urgency of relocating, it is
important to price your home correctly from the start. According to Greene, if
the property was priced low enough, you may get several bidders or more than
what you had hoped for. She said to do what the banks are currently doing with
foreclosures as their goal is to price aggressively and receive many offers.
Tara Nelson of Trulia.com
advises sellers not to be afraid in slashing their price if they haven’t
received any bites. In addition, if your home has been in the market for longer
than average or you are receiving comments that your home is over-valued,
consider dropping the price tag.
She further elaborated that
small decrements of $1,000 to $2,000 is not going to make an impact unless it
represents considerably a large percentage of the asking price. If it’s not a
big cut, buyers may sit in and wait for another cut.
Sellers may also want to incorporate
online-search in their strategy. Sellers should see if their asking price is
bordering between 2 price categories. For example, a price reduction from the
above $250,000 category will open up to a much larger audience for the below
$250,000 category.
Comments
News Archive
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Bank of America Reduces Mortgage Principal By Up To 30 Percent, Starting May 2010 - March 24th 2010
Foreclosure Rescue Firms Banned From Operating - March 22nd 2010
Private Loan Mods Performing Far Better Than Government Loan Mods - March 17th 2010
New Government Short-Sale Program, HAFA To Launch April 5th - February 24th 2010
1 In 4 U.S. Mortgages Are Underwater - February 24th 2010
Citi Allowing Struggling Homeowners To Remain In Homes For Additional 6 Months - February 11th 2010
How To Avoid A Deficiency Judgment After A Short-Sale? - February 3rd 2010
State Officials Demanding Banks To Reduce Loan Principle - January 20th 2010
Short-Sale Fraud Or Not? - January 15th 2010
Permanent Modifications Are Higher But Still Not Enough - January 15th 2010
Mark Zandi's Forecast of Housing Prices In 2010 - December 9th 2009
Stay Or Walk Away From Your Home? - November 24th 2009
Fannie Mae Launches New Program Converting Delinquent Homeowners Into Renters - November 11th 2009
Homeowner Gets To Keep Home After Lender Failed To Prove Ownership - October 27th 2009
Implications Of A Loan Modification - October 15th 2009
41 Suspects Arrested For Mortgage Fraud - October 15th 2009
Bridge Loans Coming Soon For Unemployed Homeowners - October 14th 2009
Government Modification Program Inadequate And Calls For An Upgrade - October 9th 2009
Freddie Mac Offers Door To Door Help On Your Modification - September 29th 2009
Federal Housing Administration (FHA) Running Out Of Money - September 18th 2009
Good Time To Refinance With Government Program - September 15th 2009
Selling Your Home And Tips For The First Time Homebuyer - September 14th 2009
How To Keep Your Home If You Lose Your Job - August 28th 2009
Citigroup Performing Well In Foreclosure Prevention - August 25th 2009
Foreclosure Rescue Scams Preying On Homeowners - August 17th 2009
Deutsche Bank Estimates 48% of U.S Homeowners Underwater By 2011 - August 11th 2009
Loan Modification Progress Report Card - August 5th 2009
How Bad Are Foreclosures In Your City? - July 30th 2009
Rep. Barney Frank Threatens Banks To Stop Foreclosure Or Else? - July 28th 2009
U.S Government Wants 500,000 Trial Modifications By Nov 1st - July 28th 2009
Subprime Brokers Involved In Loan Modification Scam - July 21st 2009
'Walk-Away' Survey Shows 26% of Defaults Are Intentional - July 21st 2009
'Own-To-Rent' The New Emerging Mortgage Plan - July 17th 2009
Tools To Help Homeowners Save Big In Property Taxes - July 16th 2009
Lawmakers Dissapointed With Foreclosure Help Programs - July 16th 2009
New Jersey Attorney General Goes After Mortgage Scams - July 15th 2009
Watch Out For Some Misleading Reverse Mortgage Advertisements - July 6th 2009
Chase And Bank of America To Experience 2nd Wave of Foreclosures - July 6th 2009
Obama Extends Mortgage Refinancing Program, Raising New Limit To 125% - July 1st 2009
Paper Avalanche, Lack of Trained Staff Add Obstacles To Loan Modification Program - June 29th 2009
Government Loan Modification And Refinance Program Shows Substantial Progress - June 18th 2009
Luring First Time Homebuyers, Tips To Beat The Competition And Sell Your Home - June 15th 2009
Bank Of America has modified 50,000 loans in Countrywide settlement - May 26th 2009
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