When you are buying, or selling a home, your most important step to take is choosing the right real estate agent or buyer's agent. The process is very detailed and difficult and you will want someone that could potentially save you from mistakes that can cost a great deal of money.

Saturday, August 23, 2008

Why isn't my house selling???

As a Realtor® I have the benefit of being able to look at the Multiple Listing Service (MLS) database. I can tell you that when you see homes that have been on the market for a long time, there is one common thread that puts them together in the category of hard to sell houses.

Price!

If the home isn't priced to sell, it's not going to sell. It's that simple. Now here is the tricky part, how do you properly determine a good price to sell your home? To answer that, lets first look at the basic common problems with pricing:


  • - Price per square foot is far above other houses selling in the market.
  • - Price per square foot is far above what houses have sold for in the last six months.
  • - Price per square foot is in par with other houses in the market but condition of the house is far below the competition.


Let's take a look at number 1: This usually is the result of two things. The owner added many upgrades to the house such as new additions, pools, fancy floors, appliances, etc. and their investment has priced them out of the market. In other words, they have made the house too nice for the neighborhood. The second reason would be that the owners did a lot of "upgrades" themselves and their pride inflates the real value of the upgrades. Some of these upgrades could be ill advised yet the owners think it was the best thing they could have done for the house.


Number 2: Selling above what has sold in the last 6 months is usually evidence that nobody did a proper Competitive Market Analysis or CMA. This really requires the involvement of a Realtor® like me because we have access to information that home owners typically don't. The CMA also has to properly account for differences in conditions and features of houses used to make the comparison.


Number 3: When it comes to the condition of the house you need to consider two things; perceived condition and actual condition.

Perceived: I'm sure you have watched the show Design to Sell. There are many things that send signals to a prospective buyer to run! Wild colors, extreme personalization, clutter, uncleanliness will affect the thoughts of the buyer. Even if your house is priced right, buyers sometimes can't see themselves in your house because they can't see the house past all your personal belongings!

Actual: Your house maybe priced right according to the market but what if it has real issues like foundation problems, damaged roof or siding, worn out carpets, etc? The owner has to be willing to either fix these or adjust the price accordingly.



In conclusion, it helps to have a Realtor® that is going to be honest with you. They may not tell you what you want to hear but it is also important that you are up front with them. The most helpful thing I find is when an owner tells me something like this: "I owe $100,000 on this house and I want to walk away with at least $15,000." This gives me clear direction and I can tell them exactly what to do to achieve such a goal.

posted by Patti Lora 0 Comments

Monday, August 18, 2008

Frustrated and disheartened buyers

It's all about perspective. Someone in California can't believe what $300,000 will get you in San Antonio but most people in here are looking for houses that are under $150,000. The problem is that everyone is looking for this price range and when you get down below $120,000, most of the inventory available are old houses that need a lot of work. It can be a very frustrating experience for someone who is trying to get a "deal" in this "buyer's market." Add the whole lending situation and you have a recipe for a lot frustrated, disheartened buyers.

I'm not sure when this is all going to turn around, but if you are looking for a home and your budget is below $150,000, here are some things you should consider:

- You have to be willing to make some compromises (Older homes need updates and repairs)
- Forget about $0 down payment, it does not exist any more.
- You have to prove your income, no more stated income loans.
- Be ready for underwriters to scrutinize everything, even if you have good credit.
- It's not your house until you sign the documents and you get the keys.
- Do not make any other major purchase until you buy your house.
- Do not open any credit accounts no matter how small.

posted by Patti Lora 1 Comments

Sunday, August 17, 2008

Hunter's Creek Open House

Come by today!

This wonderful single story home in desirable Hunter's Creek is just right for entertaining. Windows & doors focus on the swimming pool out back. It features 4 bedrooms with large walk in closets and 3 full baths. Recent updates to this home include: hardwood floors, slate, carpet, and designer paint. HVAC ac unit is new in 2007. The master bath has been remodeled with travertine walk-in shower & Jacuzzi tub. This home sits on .27 acres with mature trees. more...

posted by Patti Lora 0 Comments

A new phase for my site...

Hi, this is a new phase for my site. I now have an intergrated blog so I can write down my thoughts and observations on today's real estate market in San Antonio. I'm doing this so that my site remains fresh and is personalized with my insight through what happens to me every week. I'm not sure exactly what I will write on here but I hope that as time passes, it can be useful to others.

posted by Patti Lora 0 Comments