Greenville Home Search Online

Archive for May, 2009

Sellers…Beat the Homes-For-Sale Statistics!

Thursday, May 28th, 2009

If you don’t make it shine, you’re wasting your time!

 

This phrase sounds like part of the chorus from the newest pop song.  But it’s not.  “If you don’t make it shine, you’re wasting your time,” is the simple real estate truth that home sellers are learning right now.

 

Take a look at the statistics for the Greenville SC area.  If you do the math, there is about 20.2 months of inventory on the market right now.  That means it will take more than 20 months to sell all the homes that are currently on the market for sale (if we continue to follow the current trend).  That is almost 2 years of inventory.  And, the issue is compounded when you understand that the population of homes on the market will most likely grow as we get into the Spring season.

 

To say it is competitive if you’re selling your home right now is an understatement.  It is extremely competitive.  There are buyers in the market right now, but these buyers are very picky and feel like they can wait if all of their buying criteria doesn’t line up exactly right.

 

But, notice this next point: the average days on the market for the homes that have sold in the last 3 months is still right at 100 days.  I bet you would have guessed that the average DOM was higher than that.  What this means is homes that do sell typically sell quickly.  The ones that don’t sell, don’t even make it into the DOM calculation.

 

The point I am making is that buyers are still buying homes (albeit, fewer homes than they were buying last year).  The ones they are buying are the best homes that are currently available; homes that have been prepared and priced properly.

 

If you’re a home seller and you haven’t done your homework (i.e. properly prepared your home for sale and priced it based on current conditions), then you’re going to fail the test.  Staging, which is a term we are all probably familiar with, used to be optional.  But it is not optional any more.  Not being accurate on your pricing used to mean that you would simply wait longer for your sale.  Now, pricing incorrectly can be a recipe for disaster.  To get the serious attention of buyers, successful real estate agents are helping their seller clients package their home as the product that commands the buyer’s dollars.

 

Even with the troubled economic times as they are, one of the basic real estate truths is still true…the buyer wants to fall in love with the home they buy.  If you don’t make your home shine, you’re wasting your time.

 

(This information is based on HomeSOLDin60TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.  To learn more about our 60-Home Sale program, visit www.HomeSOLDin60.com or contact Aaron at (864) 616-1504.)

Posted in Sellers Market | No Comments »

What’s the deal with foreclosures?

Thursday, May 28th, 2009

According to a recent article in RISMedia, buyers’ interest in purchasing foreclosed homes is up.  No surprise here.  Foreclosed homes are at the heart of our housing crisis in the US.  In some areas, foreclosure sales make up a large percentage of the sale activity; getting the foreclosure inventory off the market is sure to bring good news for our economy.

 

The article says first-time homebuyers are a big part of the foreclosure market. Between 50 and 60 percent of foreclosure sales are going to first-time homebuyers (many first time home buyers will be taking advantage of the $8,000 tax credit available to them through the US government stimulus plan); another 30 percent is probably going to investors who are reselling them at another discount or hanging onto them as rental properties. Most of the financing for foreclosures is cash from investors and FHA loans for first-time homebuyers.

 

But, are foreclosed homes good deals?  The answer is: it depends.  Think about the lending climate in recent years.  Purchasers of homes tended to borrow higher percentages of their home’s value, so that left the borrower little equity in the home.  If the borrow fell behind and ultimately got foreclosed upon by the lender as the lender recovered the home, the lender’s investment in the home (the loan balance and legal costs for the foreclosure) may be so high that once the home hits the market for sale the price may not be a very good deal for a buyer.  The RISMedia article confirms this as one of the contributors to the article states, “In some cases, people are overestimating what they might expect in the form of a discount on a foreclosure property.” 

 

Another issue that hampers the “deal” associated with purchasing a foreclosure is correctly estimating the cost for repairs.  According to the article, more than 50% of purchasers of foreclosed homes underestimated the costs to repair the home.

 

So, what’s the deal with foreclosures?  They are a great place to look if you want a deep discount.  But remember: they may not always be a great deal and you should accurately estimate your costs.  Other sources of discounted homes can be pre-foreclosures and short sales.  And you should be sure to not overlook the motivated home sellers that are currently in the market.

 

You may also want to consider my ”Hot List” which tracks some of the best deals available in the Greenville area.  The “Hot List” is updated weekly and is available on www.GreenvilleHomeSearchOnline.com.

 

(Aaron Cole, the author of this information, is the creator of HomeSOLDin60TM, the simple six-step process that guarantees a home seller the best chance of getting the best price in the shortest time.  To learn more about Aaron’s 60-Day Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 616-1504.)

Posted in Buyers Journal | No Comments »