I received an email alert from Keller Williams that gave good tips on how to approach the changing real estate market. Both buyers and sellers can still fair well!
Texas sellers were experiencing a very hot market from 2005-2006. Although the investment and relocation markets in Dallas, Houston, Austin and San Antonio are still doing well, sellers must be aggressive in their pricing.
Tom Sherman, President of Mortgage Services Unlimited in Dallas, emphasizes the importance of educating clients. Hot tips for home sellers across the country:
- Home values can stay stagnant or potentially decrease. The inner loop in Houston, Downtown Dallas and Central/South/Lake areas in Austin may be less affected.
- Qualified borrowers are looking for deals.
- Fewer borrowers are qualifying for home loans.
- Rising foreclosures tend to negatively affect home values.
- Increased “days on the market” (DOMs) increases the likelihood that buyers will aggressively negotiate prices down.
- Continued stress in the financial markets will affect consumer confidence.
- Loans may take longer to close.
- Appraisals are becoming more difficult to obtain.
- Properties should be funded before contract contingencies are removed.
It’s critical that sellers price homes to sell -- and sell quickly -- decreasing the need for price reductions. Commercial property sales are actually fairing very well since most lenders typically required 20% down. Condo version opportunities are still popular, for instance.
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