Are you confused?
December 5, 2006
If you are following the business and financial news regarding the state of the current housing market, your head may be spinning! One analylst says prices will be stable, another says prices will decline and a third says they will be increasing. How are sellers and buyers and real estate professionals going to make decisions?
For Sellers, the price of the last sale of a comparable property should be a guide to the price they ask. Since Buyers will probably be using financing to purchase a home, appraisers must consider the selling price of at least three similar properties. Since many buyers are leveraging their assets with 100% financing, those comparables are very important to the investor making a loan.
For Buyers, the first and foremost consideration needs to be how a particular property fits their present or hoped for lifestyle. A home is where you live, where you entertain friends and where your family gathers. From an interest rate point of view, now is a fantastic time to make a purchase and lock in a rate. Some loans are now obtainable at 5.6% for a 30 year fixed loan.
Ask your parents who bought in the 1970s and paid at least 9% or in the 1980s and paid 22% if this is not an opportunity.
For professional real estate agents, the market requires an up to date knowledge of the trends and opportunites. The more knowledgeable an agent is about the market, the better advice he or she can give to clients. Buyers and Sellers need to choose the professionals and take advantage of their expertise.
If you are following the business and financial news regarding the state of the current housing market, your head may be spinning! One analylst says prices will be stable, another says prices will decline and a third says they will be increasing. How are sellers and buyers and real estate professionals going to make decisions?
For Sellers, the price of the last sale of a comparable property should be a guide to the price they ask. Since Buyers will probably be using financing to purchase a home, appraisers must consider the selling price of at least three similar properties. Since many buyers are leveraging their assets with 100% financing, those comparables are very important to the investor making a loan.
For Buyers, the first and foremost consideration needs to be how a particular property fits their present or hoped for lifestyle. A home is where you live, where you entertain friends and where your family gathers. From an interest rate point of view, now is a fantastic time to make a purchase and lock in a rate. Some loans are now obtainable at 5.6% for a 30 year fixed loan.
Ask your parents who bought in the 1970s and paid at least 9% or in the 1980s and paid 22% if this is not an opportunity.
For professional real estate agents, the market requires an up to date knowledge of the trends and opportunites. The more knowledgeable an agent is about the market, the better advice he or she can give to clients. Buyers and Sellers need to choose the professionals and take advantage of their expertise.
posted by shirley harry at 8:34 AM
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