FROM THE BUYER’S PERSPECTIVE - The media reports of a 10.4% unemployment number means more Buyers are wondering if they are going to have a job tomorrow, so they are hunkering down and adopting a wait-and-see attitude. Buyers also think the market has not hit the bottom yet, and they are correct. This coming real estate market should see far fewer buyers in the marketplace in general, but keep in mind how Buyers are sensing things…..high unemployment, rising interest rates….rising inflation, rising gas prices…..they are in no particular hurry to buy now -anymore than they were in 2009.

FROM THE SELLER’S PERSPECTIVE: I have interviewed prospective home sellers recently. Sellers still think the economy is getting better because the media tells us, “Things are turning around”. Reality checks are in order here. First, home prices are still declining. Over 33% of all home sellers have DROPPED their prices recently at least one time. Inflation is setting in NOW. This means that prices of gasoline are rising, and will continue to do so - perhaps to $3.00 or more per gallon over the Summer. If that is not enough, home prices are still trying to find a bottom, and that bottom is still elusive. Interest rates will rise (due to the same inflation), and have already crept into the low 5% range from the high 4% range….and that’s if a Buyer can even get a mortgage. The incentives ($8K tax credit) is expiring in March, so inventories should stay stagnant at best.

SO -WHAT’S MOVING?

Short sales and foreclosures seem to be the staple in the real estate industry right now. Buyers who are not first-timers or investors, and who genuinely want to buy a home for their family, are still out there, but they will take from $10,000 to $40,000 off the list price of homes that sit on the market for more than 30 days.

SO, HOW DO SELLERS SELL? - Sellers sell by listening to their Real Estate Professional regarding pricing in this market. In case agents have failed to tell Sellers, home prices have dropped at least 30% since August of 2005. So, if you - the Seller, bought your property anytime from 2004 to now, anticipate that you will NOT get your money back, and you will take a hit of at least 30% from the 2005 levels.

If you can handle the loss, it is better to take the hit at the selling end, then make the next Seller take a hit on the replacement property. Usually, Sellers make out better trading up because THEIR HIT will always be less than the upgrade hit that that Seller will take. For example….you want to list your home for $350K. Your buyer will ultimately hit you up for about $10K off that number, depending on the overall condition of the home. If you step up to a $400K home, that Seller will take a $20,000 hit….so you just made $10K on the move.

BE SMART - Call me to get the Marketing Plan that will sell your home in this very competitive market.

Do other agents Offer Online Open House Tours? I believe they do NOT. An Online Open House Tour lets Buyers view your property online 24/7 with a professional agent narrating all of the features of your property. I make sure I do all of the OPEN HOUSE TOURS.

Hving an online OPEN HOUSE TOUR is the same thing as having a Sunday Open House - only your house is open 24/7.

Buyers want access to the home 24/7. They want information RIGHT NOW. The same holds true with getting a market analysis. I can have your home value numbers ready for you in less than three hours from the time a Seller fills out my online form and e-mails it to me.

Buyers- Get a Buyer’s Agent. Most agents must now represent you as a Buyer’s agent. They can have a CBR designation or the exclusive club of ABR designee (harder to get). Your Buyer agent is paid from the proceeds of the sale that you effect as a Buyer, so you are not out a dime out of pocket. That said, as your Buyer Agent, I will represent YOUR interests, and will find lots of information about the property you are seeking in order to help you with the best deal.

EXPERIENCE - I recently represented a Buyer who looked at a foreclosure property. There were others looking at the property, and the resale value, if fixed up a bit cosmetically, would have been $60,000 above the current asking price. I suggested that my Buyer offer $5,000 more than the asking price. When all the smoke cleared, and six Offers were submitted, the top Buyer “chickened out” (as I suggested to my Buyer often happens), and the second higher Offer failed for lack of financing, so my Buyer won the prize by bidding higher than asking, having a pre-approval letter on file with the listing agent, and having his ABR (me) write a cover letter with the Offer. My cover letters generally prevail, and I cannot divulge why because it would give away trade secrets.

BOTTOM LINE - Call me if you plan to BUY or SELL a home. I am a Professional Realtor.

John