Golden Realty Blog

Selling a home in today’s Buyers market can be challenging. Understanding a little bit about the dynamics of real estate sales, can mean the difference between success and failure in selling a home during a buyers market. The secret to selling in any market is PRICE. With the market changing daily it is important to find the “sweet spot” in the price where the buyer’s interest is maximized and the seller’s expectations are met.

Here are some mistakes that sellers often make when pricing their home:

• Setting a price on how much money they need or want to make from the sale
• Setting a price based on what the neighbor’s house sold for
• Setting a price based on what they owe on the mortgage of the property
• Setting a price based on what they paid for the house
• Setting a price based on homes that have sold in a different area of town or neighborhood
• Setting a price based on the tax assessed value
• Setting a price based on what zillow.com or trulia.com shows as comparables
• Overpricing

Here are some suggestions to set the right price for your home:

• Determine the current value of your home for the current market conditions by consulting with a professional realtor
• Set the price right from the beginning
• Set the price below other comparables
• Look at the absorption rate (the length of time it would take to sell the current inventory of homes for sale). This will give an accurate snapshot of what the market is really doing.
• Set the price based on the value of the home
• Be realistic

The bottom line to successfully selling a home in a buyers market is to price it right. Setting the right price requires careful and detailed research of the real estate market. An experienced, knowledgeable realtor should possess the tools to assist a seller in maximizing their profits and accomplishing their goals.

Spring is in the air and it is a great time to buy! The $8000 tax credit for first time homebuyers, record low interest rates, record high inventory and lower median house prices, all contribute to why now is the time to buy.

Home values long-term have and will continue to rise. Although values fall in some years, on average over the past 30 years, the median price of existing homes has increased more than 6% every year. To learn more click here Housing Market Facts.

To stay updated on the latest market trends in Lane County, Oregon - Click on the link below to view the latest Market Action trhrought the 1st Quarter of 2009. 

1st Quarter 2009 Market Trends

The most trendy buzz words being thrown around with regard to the real estate industry these days are short sale, foreclosure & REO. Although these terms are heard multiple times a day, does the general public really understand the meaning of these words? Assuming that it is understood that these buzz words relate to the housing crisis and the decline of house prices throughout the nation, here is a quick, in a nut shell explanation that should help explain the basics of each.

A short sale is the sale of real estate in which the proceeds from the sale are not enough to pay off the balance owed on a loan. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosure. A short sale typically is executed to prevent a home foreclosure. In a short sale situation, the homeowner/debtor sells the mortgaged property for less than the balance of the loan, and based on the lenders approval, turns over the proceeds of the sale which is generally less than the full debt amount. The advantages of a short sale to the home owner are the avoidance of a foreclosure on their credit history, partial control of the monetary deficiency and it is typically faster and less expensive than a foreclosure.

Foreclosure is the legal and professional process in which a lender, bank or any other lien holder, obtains a court ordered termination of a home owner’s interest in a property. The process begins when a homeowner defaults or falls behind on their payments and a notice of default is filed with the courts by the lien holder. There are four option in resolving a foreclosure including; get current on the loan by paying all the missing payments, selling the property in the open market, selling the property at auction, or the bank repossesses the home after a sale at auction was unsuccessful. This now becomes what is called an REO or Real Estate Owned property. When the foreclosure process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs incurred.

REO or Real Estate Owned is a class of property owned by a lender or bank after an unsuccessful sale at a foreclosure auction. The bank repossesses the property and begins the process of trying to sell the property on its own. It will remove some of the liens and other expenses on the home and try to resell it to the public, either through future auctions or direct marketing through a REALTOR. Generally speaking, bank REO properties are in poor shape in terms of repairs and maintenance; however, banks are not in the business of owning homes and so, in some cases, the low price can more than compensate for the condition of the property.