I was recently interviewed by a reporter at Crain's Cleveland Business. The topic she was inquiring about was "What advice can you give a home seller in this market?" Ironically at the time of the call, I was previewing 10 bank owned properties in serious need of rehab on the East side of Cleveland for an investor in New Jersey with my partner Andrew. I stopped what I was doing and talked with her about the many issues facing home sellers right now not just in Cleveland but around the whole country.
My advice was direct and to the point. I told her that sellers need to be realistic about many things.
The condition of their property and necessary updates. Not assuming the buyer will or will want to make repairs.
Realistic time on the market. (Expect at least 90 days in certain areas)
Setting a price correctly at the BEGINNING of their listing not the other way around.
Being competitive if they're serious about getting their home sold.
Only work with a Broker and REALTOR that have a significant presence online and on the search engines, (Google, MSN, Yahoo, etc.) Buyers look for homes and information online and if your agent isn't there to provide it, why not? A seller right now has to have massive Internet marketing in order to stand out from the rest of the crowd. Ask for proof from your agent when interviewing where they stand online.
Working together with your agent as a team and taking their advice is crucial. Whether it's simple de-clutttering tips or repairs/upgrades, an experienced agent knows what sells and will guide you in the right path to a top-dollar sale. You must have trust in your agent and their abilities.
Treat the home that is for sale as if it's not your own. It's now a museum. It is not to be lived in sloppily or casually while it's on the market. This can be difficult with families but it's a must.
Understanding that home buyers today have many options and your home must stand above the rest with all things above included in that presentation.
The reporter typed away as I talked and I left the conversation with an answer to another of her questions. "Where do you see the market headed?" I answered honestly and explained to her that right now with the economy and mortgage losses, prices are near the complete bottom. I'm optimistic that we're heading back the way we came and not lower. We've seen a large increase in supply and drops in prices. I do feel though that the media plays a part in where home buyers and sellers view the process. There's been a very negative cloud looming over Cleveland and the nation for a while now that the real estate market is shot and it's "the end of the world!"
It's really not.
Home's are selling and buyers are buying. People will always need a place to live and there's still no greater investment or freedom in one's life than owning their own home.
What buyers need to be aware of in order to assist the current market conditions are loans that are sharked and one sided. If you're not ready to buy, don't buy.
Don't just walk into a perfect temporary situation loan in order to make a loan officer or REALTOR happy. This is your future and your life Mr.and Ms. Home Buyer.
If you're taking on a risky ARM (adjustable rate mortgage) or an interest only payment, or perhaps borrowing 100% of the purchase price and overpaying to begin with, you may be facing a possible road to financial concerns and unexpected spikes in payment.
If home buyers and sellers are ready, rational, responsible, and realistic, we wouldn't see as many horror stories as we do today.
Things will come around for the better. Many lenders have already shut their doors and part-time agents have left the industry. This is good news. If you're shopping for a new home, make sure you're lender and agent are seasoned, and understand YOUR situation and needs. Have fun home shopping and don't be too discouraged by all the negative press. If you're a seller you're probably buying something new. Enjoy the process. Enjoy some of the deals that are out here right now, and enjoy a realistic payment per month! We've all heard the expression, "House poor." it's not a simple phrase anymore. It's reality for many.
Interest rates are amazing right now and as long as a monthly payment is in place that fits your budget and income comfortably, there's no reason to worry. The worry and panic comes in if you're stretching to buy something larger or more expensive when you're just not ready.
posted by Cleveland Real Estate at
1/20/2008
4 Comments:
My brother is actually going to be moving from Utah out to Cleveland in January to attend Case Western. He'll only be there for 2-4 years.
I know homes there are incredibly cheap, and there is a plethora of inventory there. Do you think properties there will appreciate there during the next few years to make a home purchase a worthwhile experinece for him?
Yes, I do.
I think we're seeing the bottom of pricing declines in this area and for him it's the PRIME time to purchase. He actually has a few benefits on his side.
1. He's planning on being here for at least a couple of years. That's money worth investing as opposed to throwing away for temporary housing/rental. If not that long, I'd say probably rent.
2. He's going to Case which is a market in its own. There is always a demand for housing and most that come in from out of town purchase or their parents do for them. The ones that aren't in a position to do so, rent. There's a supply/demand situation going for college students.
3. If the market hasn't turned around as much as expected, he can rent it! Right now, long term real estate investments and rental property that will be held is the greatest investment one can make.
He's in a win, win situation and I think he should take advantage of the market and incredible deals available. He can get into something cheaper than rent and have the freedom to do with it as he pleases. It will be his and that's a great way to continue establishing credit, and a perfect first investment for his future.
If he needs my help, let me know!
Good to see the optimism on the real estate front. I think that, while there are obviously problems in that field, there is a lot more being made of the problem than what really exists. I, of course, am not the expert, but it was still good to see the "yes" answer.
Thank you for stopping by my blog, and for the comment you left and the entrecard recommendation. Happy blogging.
I couldn't agree more - homes are still selling, just not at the inflated prices that they would 3-4 years ago. I hope the interview came out the way you wanted it to.
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