We’ve been teased by market surges before during the past eighteen months, but there seems to be a different feeling this time. Yes, things are getting better, and in some cases much, much better. We have seen the entry level market, up to $225,000, getting tremendous activity lately. That includes many showings, offers – in some cases multiple offers on the same property, and offers greater than the asking price. More than half of the listed homes in some of those markets, i.e.- the Gardnerville Ranchos, are now in a Pending status. That means the owners have accepted an offer and they are in escrow.
Other price points have not seen the surge, but it could be coming soon for a couple of reasons. The first is the obvious, as the move-up Buyer is finally able to sell they will be actively shopping. The move-up Buyer has been teased watching the prices fall on homes in their desired neighborhood, but unable to act because of the lack of activity on their home. That is changing, and they will soon be shopping.
In the past few days the terms on Jumbo loans were greatly improved. Lenders had clamped down on Jumbo loans when the debacle started because they didn’t want the risk. Rates were two or more points higher than a conventional loan, and qualifying was a nightmare. That slowed the upper end market to a crawl … one of imperceptible motion if truly analyzed. With the new terms just being announced it will take some time to see their effect on the market, but it is likely that it will create new activity after the word gets out about it. Homes that were once appraised at $1.6 million now available for under $800,000 is too much of an attraction to the qualified Buyer. The Market will be there now that reasonable financing is.
Another Market changer is the Lenders new attitude about and their responses to short sale offers of late. This is having a significant impact on the Market as it is slowing the amount of foreclosures. Short sales are better for neighborhoods as the property remains in good condition while the owner continues to reside in it. That means there will be fewer bank-owned properties dragging the values down so far and fast as they have been doing. This is a change from what we’ve experienced over the past 18 months, one we’ve been hoping would occur. The process has been enhanced by special short sale services of some escrow companies that are getting good results from their communication with the lenders, something that agents came to loathe before this attitude change.
Our Advice: It is apparent that the First Time Home Buyer Tax Credit incentive is having a positive effect in our real estate Market Place. If you qualify for that and are thinking that it might be a good idea to buy a home now … quit thinking and start doing! The Market is changing and as it gains traction the pricing will also change. You have great interest rates and pricing available to you, but now you have competition in the Market place. Good old capitalism (remember that?) is again in play. The same dynamics will soon occur in the other price ranges for a variety of reasons. If real estate is on your mind be sure to update your expectations … you might be pleasantly surprised.
Don’t hesitate to act now if you are timing the Market … you may just be outfoxing yourself instead of the Market and Sellers! When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com
Your Agent is continually talking to you about lowering your price because the market keeps dropping and your home clearly hasn’t sold. Quit the ostrich act! It isn’t your Agent that is necessitating the downward price adjustment - it takes a willing Buyer and a willing Seller to make market value. When there are many listings and few Buyers, the market value declines … supply and demand. It isn’t your Agent’s lack of selling skills or incompetence (we hope) that are causing your home not to sell if it isn’t priced right for what you are offering.
Agents don’t make the market … but the good ones monitor the variables closely to enable you to stay current in the market such as: interest rates; the economy – local, regional, National… even Global today; the inventory – existing and new product coming on line, the overall Market activity, Buyer demographics; other investment opportunities or vogues; changing area amenities, i.e.- increase in medical services in the community; and many more.
When the market runs up some Agents don’t have their Sellers make adjustments. When the property sells the Seller doesn’t know how much was truly left on the table. When the market drops it is evident to all if a property isn’t priced right – the property sits on the market … and sits…and sits. Properties that are priced right are for the most part selling. The price is up to you, the Seller, and what a Buyer is willing to pay for what you have.
Buyers today want a great buy … your Agent can’t control that. She can tell them how your home stacks up in the Market, but she can’t prevent the “lowball” offer that so offends you. She can tell them why your home is priced so well, but she can’t overcome their “media paralysis”, their fear to act because of what others have told them they should fear. Some are so afraid by what they see and hear that you could give them your home and they’d be afraid of “the catch”.
Our Advice: Your Agent cannot overcome the collective consciousness of our society which today is in such a panic that many people have simply put their lives on hold. She can, however, be realistic, positive, energetic, and attentive to your needs as she approaches her fiduciary duties daily to get your home sold by finding the good smart Buyers that are out there today taking action. Good agents can help you save, or make, money by helping you make good decisions. That can be interpreted for some Sellers as minimizing their ultimate loss. It shouldn’t be a test of wills between you and your Agent – you should be working towards a common goal – selling your home for the best possible price in a reasonable time and protecting you from problems.
Money seems to be ready to flow back to real estate from stocks given the great real estate prices, incredible interest rates, and brilliant future of real estate. As the money flows, prices will gain traction and things will turn around. This is now the peak opportunity for Buyers to make their best buys, and for Sellers to maintain their optimism about their home selling. Enjoy it – these are the Good Old Days! When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com
You sound like a normal Seller when you say, “We have to get $X.XX”, or “I don’t need to sell.”, or the classic uttered by just about every Seller on the Planet, “We’re not going to give it away.” In every instance, you are right as it is your prerogative as the home owner. Let’s put it in perspective.
If you “don’t need to sell”, and are unwilling to price it right, then it is best if you take your home off the market and wait for the recovery … whenever that may be. If you “have to get $ X.XX ” remember, Market is what Market does. If you can’t/won’t price to sell in this Market, take your property off the market to reduce the inventory glut. It will serve you better in the long run as it will help us recover quicker so you can meet your needs later. Finally, remember that “giving it away” is relative to the Market. If you are selling at Market value … regardless of the price … you aren’t giving it away. If you are 30% below the Market value you are giving it away and you don’t need us to do it.
Market is set by a willing Buyer and willing Seller. In a “tipped” market like we have today, a “Buyer’s Market”, the advantage goes to the Buyer. A Seller may be willing to sell for $300,000, and the Buyers are only willing to pay $250,000. With no meeting of the minds the property remains unsold. Agents don’t set value. They can price a property with a Seller, rightly or wrongly, but Agents do not set market value, Buyers and Sellers do.
Competition is fierce for Buyers these days and Buyers are smart. The National Association of Realtors tells us that the average Buyer spends eight hours on the Internet … Northern Nevada MLS … before contacting an agent. Buyers often know the numbers better than the agents showing them property since Buyers are focused on their market segment and agents usually work the full market spectrum. With an abundance of information available on the Internet Buyers are able to do extensive research on available and sold properties.
Don’t try to kid your agent about your value … you are only kidding yourself. If your agent takes your listing too high they are not doing you a good service. Are they taking it because they have no other listings? Are they taking it because they don’t know any better … a newbie or unfocused (has a day job) agent? Or worse, are they taking it to employ one of the oldest tricks in the book … get the contract and start beating you up week after week after week for a price reduction. Regardless, when pricing your home, “to thine own self be true.”
Our Advice: Quit playing games. There are Buyers all over our market … cautious, tentative, knowledgeable, thorough, ready, willing and able Buyers. If you want to sell, your only alternative is to price it right. Consider the amenities you have, assess the market you are moving to, and price accordingly. Good maintenance and upgraded features may get an edge in the market so your home sells instead of another, but it doesn’t yield the additional tens of thousands of dollars it has in the past. Buyers should figure out what they want in a home, find the properties that qualify, and make an offer. With interest rates creeping up, almost one percent in the past three months, they are losing buying power as you wait. Prices are good, values are better … take action.
The last dumb out-of-state Buyer has gone home. They aren’t coming to town and paying too much because they have fallen in love with the area and panicked about not being able to buy a home. The good news is that they are buying homes and cash is flowing. Get in the flow. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com
Congratulations on getting an offer! Something you and your agent are doing must be right for a Buyer to find your home and think enough of it to make an offer to buy it. Now…what to do with it? Low offers often create emotion and frustration. Nothing will be accomplished if you get mad at the Buyer. Buyers are doing the best they can for themselves … like you and your agent will do for you on your side of the negotiations.
The first thing to do is to assess the Buyer’s motives. Is this a Buyer that is reaching, hoping to buy your home at a price he can really afford? Such a Buyer reaches beyond his means, but with a little luck, and your price acquiescence, he can enjoy such a home one “upgrade” sooner than he would otherwise be able to. This Buyer is maxed out at the low offer price.
Other Buyers are simply “bottom fishing”, looking for the deal of a lifetime. They are going to offer low regardless of how well you are priced. This type of Buyer uses your list price as a starting point rather than looking at where you are priced relative to the market. A home priced right in this market is not a sign of weakness, in fact most often it is just the opposite – it is a sign of someone that is not upside down in their property, is realistic about what is going on, and is ready to get on with his life. It is amusing when a low ball operator makes a low offer on a well priced home- their tactics are pretty well exposed. If you are priced right – stay your course.
There seems to be yet another category of low-offer Buyers these days – those claiming that they are topped out at where they are offering. We’ve had this happen several times lately where we received a very, very low offer, made a counter, received a little adjustment from the Buyer and were told they were maxed out. In one case the Buyer later came back $40,000 higher when he had competition (he was too late and lost the house!). In another, the transaction didn’t close, and the Buyer bought a home for $50,000 more than the “most they qualify for”. Both of these homes were in the low $200k range so these amounts were significant relative to the total price. Your agent can help you decide what to do if your Buyer “can’t pay more”. Can’t … or won’t?
Our Advice: Work with your agent to determine the Buyer’s situation/motivation. If they are playing games and you quit you’ll never close with them. If you play with them- stick to your goals, and if the transaction is meant to be it will go together. There’s nothing wrong with a little “ping pong” negotiation if your objectives are ultimately met - it just takes a little longer. Don’t blame them for making a low offer – many Buyers think they have to try it. What happens afterwards is what counts. If they are trying to steal something, and you won’t let go, they will have to find another home. If they aren’t realistic, you didn’t lose anything by not working/playing with them – you never had them to begin with. Appreciate that your agent is doing a good marketing job to have your home be selected as the one they offered on.
Be honest with yourself – is the offer closer to the real value than your list price? Maybe the Buyer is checking your “expectations vs. reality” in hopes you will come to your senses and they can buy it at a fair price. It’s a good time to go over your own goals and objectives.
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com email us at carsonvalleyland@hotmail.com , 775-781-5472.
This market isn't for everybody, however it is a time of opportunity for many. With good credit scores and/or ready cash, it is a good time to buy Carson Valley real estate, Search Carson Valley Real Estate.
So who should buy now? If you are a nervous investor, it's a good time. It's kind of like voting early and not having to listen to the political ads anymore. If you buy a property that you want, you can stop listening to the doom and gloom media bombardment. You can be comfortable with your investment and know that whatever happens, you have it. Unlike stocks that leave you with a certificate when their value diminishes, you will always have your real property. Buy quality at a good price and relax. It may go down before it goes up, but you've made a decision and can get on with your life.
If you are a first time home Buyer, count your blessings that the market has checked. Today's prices are much less than what you would have paid a year or two ago. In fact, you likely would have been priced out of the Carson Valley at that time. Are you going to wait and try to time the market drop, or are you going to buy now and start enjoying the many benefits of home ownership? Remember, you aren't making a one year investment - home ownership should be considered with a longer hold perspective. Consider that in Douglas County 48.9% of the people lived in the same house in 1995 and 2000 - just about half the people didn't move in five years!
If you are looking to move up or down in the market you are really moving "sideways", the homes you are selling and buying are relatively priced. If you are moving up - do it before the prices rise and you will enjoy greater appreciation when they do with the more expensive property. Moving down? Do it before the prices rise and you'll enjoy a lower loan amount and, possibly, rate, for the term of the loan. Don't put your life on hold until "someone" says it is time to act - control your own life and real estate happiness by taking action now. Your buy and sell prices are even in their respective market segment.
If you are a savvy investor, this is a wonderful time to make your intentions known to your agent. Opportunities now appear on a regular basis. If your active agent knows your investment objectives, i.e.- a place for your child(ren), appreciation over five years, change portfolio location, etc., you have a much better chance of successfully achieving them in the next six months, or so. Be ready to act and stay open minded.
Our Advice: If you have a credit score below 720 it is probably in your best interest to work on increasing your score before you buy. If you don't you will likely pay a higher interest rate and could very well get the run around when it comes time to fund your loan. When the market was soaring people looked past these negatives figuring that their anticipated appreciation would offset the higher costs of the loan. Today one can't count on short term appreciation - plan on holding. Get yourself ready to act. When the market turns it will be like a dam breaking and you will have a lot of competition for the quality offerings that you don't have today.
Timing the falling market to catch it at the bottom is like the proverbial "catching a falling knife" ... it is hard to do. If you know you want to live/invest here, and have confidence in the Carson Valley community, then you can buy with confidence ... now. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, carsonvalleyland@hotmail.com , visit our websites at www.carsonvalleyland.com or www.carsonvalleyremax.com call anytime at 775-781-5472.
Decluttered and Lowered Price
We have packed the clutter and reduced our price and still don’t have action … now what?
Congratulations! By packing your clutter and reducing your price you have made your home market ready – a great first step. Now you need to look with a critical eye at what you are truly offering. Buyers are looking at a lot of property these days. Some will look at ten homes in a day, whereas just two years ago they might not have had ten to select from in total. How do you really stack up?
Did you simply box up the knickknacks, or are you decluttering the entire home and garage? With the majority of your prospective Buyers being visual personality types it is important that you eliminate what they will deem a “visual nightmare”. Cobwebs inside and out, pet “landmines” in the backyard, dirty dishes and clothes, peeling trim paint, must/mold/smoke odors … all must be addressed unless you are priced such that you substantially compensate the Buyer for these deficiencies far beyond the actual cost, or perceived cost, to mitigate them. Most often you won’t have the opportunity to negotiate these deficiencies with the Buyer – they will select another property. If you do, you will usually end up paying dearly for your lack of preparing your home for market. It is best to prepare in advance.
Regarding the price – did you merely take it from 10% over to 3% over market? Are you the very best thing out there for what you are offering, or do you need to adjust it further to compete with properties that are actually offering more for the money, or are in better condition? Buyers are incredibly price-conscious these days … sometimes to their own detriment as it is causing them at times to not act, or to not buy the home they want if they don’t get a pre-conceived discount from the List Price, regardless of how well the property is priced. Be price smart if you are committed to selling in this Market.
Our Advice: Unless your potential Buyer has a specific reason to buy your home, i.e.- their child lives next door, they want to ride their horses on the BLM land next door, your 20 foot ceilings will accommodate the Christmas tree they want, etc., you must continually monitor the competition. Remember, the other homes for sale are your competitors, and they, too, want to sell. They are watching you! They will seek advantage so they, too, can get on with their lives. You and your agent should be watching the market on a regular basis, several times a week. Also, pick up the little things around the place – consciously, or subconsciously, the Buyers will notice what you do … or don’t do. As you know, you never get a second chance at a first impression so make sure your first one counts! With few showings it is important to make each one count.
If you want to sell don’t wait to get your property perfect – get it on the market and start working on it. Your agent will work with you on what is truly important to accomplish before having any market exposure, and what will help to give you an edge as you gain market momentum.
Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com , www.experienceispriceless.blogspot.com or email us directly at carsonvalleyland@hotmail.com 775-781-5472.
