Please bear with us as we are having some technical issues with our formatting.

SHE SAID: Buyer's Side

About three years ago, I met a buyer who told me he was waiting to buy his first home because prices were too high. Since that time, we’ve seen record inflation in home prices. Even though the past year has calmed the crazy in the market, prices remain relatively steady. We’re not seeing that decrease the buyer had been hoping for. So what do you do if you want to buy in the next year?

What is really making the pinch in most buyer’s wallets is the increases in interest rates, not overall home pricing. Higher interest rates make our mortgage payments higher too. We don’t want to overpay for a property, and we also want to afford our monthly bills.

The good news is that with a normalized market, we’re able to take some time to do more financial calculations when considering a purchase. On the REALTOR® side, we want to pull 2-3 comparables for every property to assess the seller’s pricing. Some sellers are still hoping to earn top-dollar for their property. Usually, we check for pricing before we show you a property and can advise you as we’re discussing the other features of the home.

Next, buyers should have their lender run a few “what if” scenarios for payment and total closing cost options. In many cases, asking the seller to pay some closing costs or buy down an interest rate can be more affordable than asking for a price drop.

Long and short of the story is that pricing is only one component of the overall cost to buy your home.

--Alison

HE SAID: Seller's Side

Price means everything!

We have had several listing appointments in the past two weeks. Everyone is concerned about the status of the economy and the effects of inflation on the buying power of the dollar. National trends are not always the same as local ones, but we continue to hear the same question.

How do you price a property in our area?

The real estate market is currently divided into three distinct levels. The first time homeowner, move up or middle market, and the luxury market. The first time home owner market is very competitive with inventory being supplied by new construction. The builders are using rate buy downs to entice purchases and keep the inventory moving.

How do you price is still the question. Since buyer demand is slower right now, strategic pricing is extremely important. We have been advising to price aggressively. For instance, we usually give a pricing range, based upon sold comparables and active listings, at listing appointments.

Sellers wishing to sell within a strict time-frame, especially those beyond the entry level properties, will want to price near the lower end of our suggested range. For a “normal” sale, we’re suggesting a price just below the higher end of the range. Doing so will attract the most buyers.I can’t think of a property this year that we’ve suggested pricing above the comparables.

I admit, It’s difficult to generalize advice on pricing. For each property, we help devise a strategy for the time frame that meets your goals. Call us today for a simple, personal approach.

--William