If you really want to sell your house in the worst market in the history of the United States, you must be sure that you are doing all of the right things at the right time.  It is readily apparent that you are in a competitive fight with a large inventory created by many overly aggressive home builders. In most cases, if you are a home seller attempting to sell your existing home that is several years old and may need minor repairs, the builders will usually be victorious  because the prospective buyer will, in the majority of cases, prefer a new home over a home that has been lived in and in need of minor repairs.  In addition, builders who are in a precarious financial position and near of edge of bankruptcy, will just about do and/or offer the buyer many benefits that you the average home seller can not and do not wish to offer.  For example, the builder will offer to pay the buyer’s mortgage closing costs and may allow the buyer to buy down the mortgage interest rate just to make the sale.  Just these two benefits offered by the builder will allow the buyer to save thousands of dollars on the purchase of the home.  In addition, the builder may offer to enclose the deck, add a half-bath or even install drywall in the basement, just to perpetuate the sale. This is a “Buyer’s Market”, which allows the buyer to be highly selective and very discriminating when it comes to making a value judgment on which home best fulfills their domestic needs and desires. As you know, a house is a major purchase and is probably the largest single investment the buyer will make during their life time, with the exception of their mortgage loan. If you were to secure a $100,000 mortgage loan, with a 30 year fixed rate at 10% annual interest rate, you will have paid approximately $316,000.00 over that period of time.  You may be wondering why anyone would want to pay all of that money for a home, right?  The answer is that your home will be the biggest and best investment you will ever make in your entire life and all you have to do is live in the home and mantain it.  Your home will repay you many time over with wonderful tax
advantages awarded to you by Uncle Sam and will usually appreciate many time over what you originally paid for it.  How can you not afford to buy a house? I think it is safe to say that this “Buyer’s Market” in the real estate business will not last too much longer and is an integral part of a cyclical process that provides our national economy with periodic readjustments.  We may want to make the analogy with the New York Stock
Exchange, when the “Bull’s Market” gives way to the “Bear’s Market”, which occurs on a periodic basis due to a cyclical readjustment in the national financial market place.
In closing, please remember that your house will sell for the fair market value when the housing market, the economy and the financial cycle has run its course and has made all of the necesssary market readjustments. Always be patient, whatever goes up must come down and visa versa. Good luck on sale of your beautiful home.

Tags: Appraisal, Finance, Mortgage, Real Estate

This entry was posted on Saturday, September 6th, 2008 at 8:33 pm and is filed under Dr. Martin, Mortgage Finance, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.