 Answer: You simply look at what other folks have been paying for similar properties in recent history. Or ask your Realtor to 'run comps' for you. I just had a client ask to show them a FSBO (for sale by owner) home that was priced at $350,000. I said I'd love to, but I first wanted to see where the seller got their price from. Turns out, the home was listed about thirty or forty thousand dollars too high. Now, had someone contracted to buy the home for 325K, they would probably think they were getting a deal - wow $25,000 off list price, when in reality they would've overpaid by at least 10 thousand dollars as the home is worth about 295-315K in the current market. Just goes to show - the asking price on a home is not always based in reality. Add Comment Where Does the Real Estate Market Stand? By Phyllis Brookshire It is always about supply and demand. In May I wrote about the factors that most affect supply and demand: the availability of jobs in the market, consumer confidence, and the affordability of housing (the cost of homeownership). Last week, The National Association of REALTORS released the July housing report showing that existing home sales were sharply lower, but median home prices continue to rise. Why? First demand. First time homebuyers left the market in July with the end of the tax credit. The market took buyers from the summer and early fall months and moved them into May and June. And other buyers continue to be waiting for a bottom. But that could be a risky play with median home prices rising. Second demand. Inventories are increasing with short sale and foreclosure properties languishing on the market with buyers leery of dealing with the long and tedious process of getting distressed properties closed. There was a lot of talk about the NAR report in the press. I really enjoyed Steve Harney’s post about what the report WAS NOT. Bottom line, a large inventory of homes will keep prices down and low mortgage rates will keep the cost of homeownership down. It continues to be a great time to buy a home. Competitive vs. Compelling Pricing Make sure your home is the “shiniest apple” You’ve taken my advice about what to do when trying to sell your home: spruce up the landscaping, repaint the bathroom, remove extra furniture and make it available for showings. And you’ve agreed to price it competitively with others in the area. That may not be quite enough. In today’s real estate market, competitive pricing is the expectation. Compelling pricing is the exception. A competitive price is reasonable, viable and good. But it’s also in line with the price of many other properties with similar features, which makes it part of that sea of sameness. A compelling price has a powerful and irresistible effect; it commands attention, admiration and respect. Compelling is convincing; it grips you and doesn’t let go. It’s persuasive and undeniable. It’s the shiniest apple in the bowl, just begging for someone to grab it. Is your listing price compelling or merely competitive? Are buyers grabbing your apple? Find out what your home is worth! How Mortgage Interest Rates Affect Your Payment One positive outcome of a slow economy has been historically low interest rates. But as the economy begins to improve, industry experts predict that interest rates will creep up, perhaps even reaching 6 percent by the end of 2010. While prices are likely to remain low, consider what even a small increase in interest rate can do to your monthly payment. On a $200,000 loan, an increase from 5 percent to 6 percent would result in $125 more per month, or $1,500 annually. He (or she) who hesitates pays more! Think Outside for Spring Whether to refresh your home for spring or to get it ready to put on the market, there’s no better way to make eye-catching changes than sprucing up the exterior. * Thinking about replacing that exterior door or siding, or adding a deck? On a national level, these projects recouped more than 80 percent of costs at resale, according to the 2009 Remodeling Cost vs. Value Report published by Hanley Wood. * Paint, always an inexpensive pick-me-up, could be the answer for a tired home exterior. Pick a fairly neutral pale yellow, sage green or light taupe for a warm and friendly welcome. * Pressure-wash siding, exterior walkways, driveway and fences to knock off mold and mildew for a quick improvement and instant perk-up. * Consider landscape projects to boost curb appeal and lift your spirits. Add mulch for a finished, professional look. * Replace those old, drafty windows, for a 76 percent return of cost at resale and current rebates and tax incentives for certain types of energy-efficient windows. Call us today for more home improvement ideas. We'd be happy to connect you with Allen Tate Home Services to get your projects started – and get your home ready for spring! Stay In Tune with Your Home's Market Value 10/05/2010
 It seems everyday now I am asked to do a market analysis for a homeowner in hopes of selling and moving on with their lives. In so many circumstances, folks have no idea what has been going on around them in their own neighborhood – that prices have declined by 20% and that in order to sell they’d have to take a huge loss in the tens of thousands of dollars. I guess I’m writing to suggest that you stay on top of your market value. A good Realtor can run this data and analyze it for you at no charge. Just like an appraisal, this info is only really valid for a short period of time (i.e. you wouldn’t want to use an appraisal from 6 months or a year ago – it needs to be recent). It’s not all doom & gloom, but if you bought in 2006-2008, there’s a good chance you’ll be in a similar situation if you need to sell. Short Sale & Other Options for Underwater Homeowners To Avoid Foreclosure in Greensboro, NC 09/20/2010
 Did you know there are 5 loan work-out programs a lender could propose to homeowners in default?
 I've spoken to numerous home owners that spent months if not years trying to sell their home after bouncing around from Realtor to Realtor, and often a large part of what they were concerned with was saving 1 or 2% on the real estate commission. Now, the commission is surely the largest expense of selling, but I always ask these sellers this: 'By listing with a Realtor that agrees to cut their rate 1%, what are you saving when they don't sell you house after 6 months? You are saving exactly 1% of zero - nada! Plus, you have wasted your most valuable marketing time while you days on market (DOM) have risen - often stigmatizing your property.' Not to mention that a properly exposed & marketed home will help sell a home for more - far exceeding any marginal reduction of commission. So, before you focus on potential 'savings' - think about the cost of not working with someone that will earn their commission and get you a faster result and higher sales price.  I just wanted to write a quick post to give my two cents about the day-to-day practices in Greensboro real estate that I see as gimmicks. You'll often see the following in real estate advertising:
Now, there's nothing wrong with any of these practices, but I always advise my buyers to be aware of these options and decide which are important to them individually. Then, disregard who's offering what - find the house you want to pursue and try to negotiate the items you want on the property you want!  There are segments of buyers that didn't capitalize on the tax credits and are still in the market to buy a house. There are different reasons for this such as:
The point is, as much as everyone would've liked to taken advantage of the tax credits last year and early this year, it just wasn't the right time for everyone. So breathe easy sellers - people are still buying real estate in the Triad! Tax Value Does Not Equal Market Value. 08/10/2010
Most People Think TV=MV (Tax Value = Market Value). This Is Not Quite Right... Just a quick rant about why first time buyers on through to savvy real estate investors should understand the difference between tax value and market value. The tax value of a property simply tells you how much money you'll be spending in taxes per annum - nothing else. The market value of a property tells you what similar homes have sold for recently - indicating what the actual value of the property is at this particular moment. So often I get asked the following: 'Hey Zane, how much are they asking for that house?' The next question is always 'Hey Zane, what's the tax value of that house?'. The question is fine if you want to know how much the taxes will run you, but everyone asks for the wrong reason. I'm guilty of it too, and it's human nature to want a deal, but these folks should be asking 'Hey Zane, what's the market value of that home'. If you buy a house for tax value, you could be getting a steal of a deal - but you could also be paying too much - it's just not a good measuring stick. In determining what the property is worth, you can decide if you are making a good purchase or investment. This is just one factor in determining a good strategy for making an offer to purchase on a particular piece of real estate in Greensboro, NC. Buyer Agency Explained (Again)... I feel like I say this a lot, but it's worth repeating. As a 1st time home buyer in the market to purchase a home in Greensboro, NC or the surrounding areas, you may not be aware that having a highly trained Realtor at your side through the process is generally going to be absolutely FREE! That's because the seller pays the real estate commission. A good buyer's agent will:
*Buyer Agency Agreements could include provisions where the buyer would be asked to compensate the agent for any number of reasons such as: 1) The seller is offering less than the buyer's agent expects to receive or 2) The buyer decides to purchase a FSBO (for sale by owner) that will not agree to compensate your Realtor. P.S. I've represented lots & lots of buyers, and it has never cost any of my buyer-clients a dime to work with me! Where To Start? The Basics. Buyer Agency Explained (again). My first blog! Where to start? I thought I'd start with the basics. The things I seem to repeat a lot. I mean a lot. It's not that they're complex or hard to understand concepts. It's just that I work in a field (like anybody else) that has it's own language and/or is overly boring until you are in the market to buy or sell a home. So, I guess my first few blogs will be about the basics - working with a Realtor (me) as a buyer, as a seller, or as both. We will cover:
| AuthorI'm Zane Gerringer, and I work full time as a Realtor with Allen Tate Realtors in Greensboro, NC. I believe owning a home and investing in real estate are essential in building a secure financial future for your family. I love representing both buyers & sellers, and I want you to make smart real estate decisions in the Triad!  ArchivesJuly 2011 CategoriesAll |
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