Chasing the Market

Pricing a property correctly is so critical in today's market. A home priced above "Market Value," will isolate the home from the market and will end up loosing more money for the home owner. The term "Chasing the Market," is exactly what homes that are incorrectly priced end up doing. Chasing the market is pricing the home above market value, and slowly doing price reductions. This method of pricing a home is not financial responsible because by the time the price is lowered though using price reductions the market price has gone down and will cause a sale at a dramatically lower price than if the home was correctly priced from the beginning.

Real Estate Market Direction

The Real Estate Market is like an ocean constantly over time going up and down. Throughout history the size and magnitude of the waves have varied, and has either made people money or has lost people money. So how do we put aside our "hopes" that the market will magically be better by next year and look at reality? We need to look at the Macro Economy to gauge where is the real estate market going.

This Tuesday the Fed will meet again to decide to lower the interest rates again. Most people believed that interest rates where at the lowest point and may be slowly increased. So what has caused the Fed to consider lowering interest rates again? The lack of liquidity/capital that banks have due to the MASSIVE Foreclosure write downs that banks have incurred. Banks such as Lehman Brothers, AIG, and Washington Mutual are on the verge of collapsing just like Bear Stearn's did (SCARY!!!!!) The stock market and real estate market need a life line to save them from collapsing further.

So what does that mean for a home owner that needs to sell their home. I believe that we will continue in a down trending real estate market until the end 2009. I believe that we will not see appreciation on homes until the massive amount of inventory is lowed and the availability to funds (mortgages) is easier to attain. The best "game plan" in this market is to first qualify your true motivations behind the move. Second, become realistic on the true value of your home and price it to sell vs. sit on the market. Third, the next home you purchase make sure that it is in a great location, is in great condition, and you plan on living there for 5 plus years. Often, you will be able to recoup if not profit more that what you lost if you take your time and study the market and buy your next house correctly.

It is my GOAL to help each of my clients understand the Real Estate Market, their local market conditions, and the best financially responsible decision the sell or buy real estate.

Ryan Boyer
http://www.ryanboyer.com/
Usa 4% Realty