or should I say a former problem. Yes, low appraisals are now holding up the closings. Just when you thought sales and prices were up, the appraiser comes along and tells you the house is worth less then the contract price. We have heard many stories of many showings in the first few days of being on the market ‘for sale’ and we have heard many stories of multiple offers. Typically you accept the highest, but beware; if their is ‘mortgage or appraisal contingency’ you may have a problem. What happens in this case, either the buyer comes up with more of a down payment (this rarely happens) or the seller lowers the sale price (some times if it is not too much) or the buyer backs out (usually). Once this happens, what are you suppose to do? It’s a tough call. You can keep your property on the market, but the same thing may happen. Each seller has their own set of circumstances and the seller must decide what to do next. No easy answer. New Federal Laws prohibit the mortgage company or seller to have contact with the appraiser so you can not try to convince them to change the appraised value. Our feeling is that ‘appraissed value’, not rising interest rates will slow down the current rush of buyer of real estate.
Archive for June, 2013
You are in the drivers seat. Yes, for the first time in over five years the sellers are in control. Sellers have less competition as inventories are at ten year lows. Sellers are seeing prices go up in their area. Sellers are having more buyers look and place offers than in a long time. If you have been thinking of selling, but you were waiting for better timing, it is right now. You could wait until next year and maybe get a slightly higher price, but there will be more competition, mortgage rates will be higher so buyers qualify for a smaller home, and it will take longer to sell. Prime time to sell real estate is in the Spring of each year and the 30 days prior to school starting. Families need to know what school their child will go to in the fall, that means they have to know the location of their new purchase. Once school starts, buyer activity slows down. It’s only June, so look for a big rush of buying activity in July and early August. Starting Labor Day weekend, activity will slow down. One last message, buyers looking online are getting frustrated that properties being advertised for sale already have a contract. The buyers keep looking more and more at ‘by owner’ websites, such as www.FSBO.com. Your property needs to be there.
Ready to buy, but inventories are low. To find a property, you are looking online, driving around neighborhoods, talking to agents, and you still can’t find that dream home to buy. Here is what is happening. For the first time in many years we have what is called a ‘Sellers Market’. Homes for sale in good condition and priced right are attracting many buyers and offers. So many in fact the sellers are asking themselves why am I paying so much in commission to an agent. As a result we are seeing an increase in sellers posting their property on websites with no agent involved. Websites like, www.FSBO.com. These FSBO sellers are ready to work with you. They should have contracts available, escrow and closing company information, one or more mortgage brokers to work with and they should have neighborhood sales which help establish the sale price. Never before has it been so easy to search for a property and have all of the tools needed to move forward. We say: “DO IT YOURSELF!… DO IT FSBO!