Welcome to the most current Housing Trends eNewsletter. This Newsletter contains the latest information from the National Association of REALTORS®, the U.S. Census Bureau and Realtor.org reports, videos, key market indicators and real estate sales statistics, a video message by a nationally recognized economist, maps, mortgage rates and calculators, consumer articles, plus local neighborhood information and more.
To check on the current market value of your home, click here.
Setting the price for your home involves balancing expectations with realistic knowledge of the current market. Research provides some insight into setting the right asking price.
1. Getting too precise means you won’t budge and negotiate. Setting an asking price at $797,485 rather than $800,000 sends the message that you have confidence in the price and will not be very willing to negotiate.
2. Use the number nine. When you are shopping at the store, have you ever asked yourself why everything seems to be priced with 99 cents? $9.99, $39.99, $799.99? Wouldn’t $10, $40 or $800 make more sense? Actually the number nine can be a big influence. Pricing a property at $599,999 rather than $600,000 can subconsciously influence the home buyer. The lower number, even though we are talking about a dollar, just appears much lower. “It’s the way our brain looks at numbers,” according to Michael Seiler, professor of real estate and finance at the College of William & Mary.
3. Going low doesn’t always mean a higher selling price. Though you may create a frenzy of offers, you may find you take a lower offer if it’s an all cash deal.
Selling real estate and getting a solid offer is a delicate dance of strong marketing, informed pricing and exceptional negotiation.
To read more click on this link to be taken to this Wall Street Journal article on Strategies for Setting a Price for Your Home – WSJ.
This is a good time to buy in the DC area.
1. Interest rates are still low. 30 year fixed rate loans are averaging 4.16%. Many economists are predicting 5% rates next year. Higher interest rates mean higher monthly payments and less homes that you can qualify for.
2. There’s more inventory as the fall market heats up. And as more property enters the market, prices stabilize.
3. Home Prices are going up.
4. Rents are Sky-High. You have to pay a mortgage, whether it’s yours or your landlord’s. Home ownership forces you into saving. Your mortgage payment stays the same year after year. Your rent goes up year after year.
5. Employment is on the rise. This lends financial stability. If your employment prospects look good, it just may be the right time to buy a home.
To read more click here. Top 5 Reasons to Buy a House Right Now – Real Estate News – realtor.com.
When placing your home on the market, some will advise you to strip your home of all personality and instill a “beige” feeling. BORING! It’s actually more important to instill a bit of personality into your home. It is important to depersonalize a space by removing deeply personal items. And it is important to declutter to enhance spaciousness.
To really make your home stand out to buyers, it’s important to make it memorable so it doesn’t blend in with every home they have viewed. This means creating spaces that buyers can imagine living in. Imagine who your buyer is likely to be and staging accordingly. To read more about this go here: Dressed to Sell | Realtor Magazine.
Listing Price Drops Will Help Drive a Fall Surge in Home Sales, according to Redfin’s Research Center. They predict that buyers will move into the market as we are seeing some price drops. “There’s blood in the water.” In other words, the market is shifting from a sellers market to a market favoring the buyer in some areas. In Washington, DC of homes for sale in July 2014, 31% had a drop in the listing price. Fewer homes are selling above their listing price. Prices here are flattening out. Redfin expects price increases to slow down. This helps buyers as they should regain some of the bargaining power lost last year.