Undecided about selling your home now? You should read this.

There are conflicting reports in the news media about real estate that can make your head swim.

One report says that the real estate market is booming and that home prices have shot up. The next day, there are reports that new construction is at an all-time low and that is an indicator of flailing markets. One says that rising interest rates are hurting the real estate rebound, while another says that mortgage lenders are making more loans!

Here is the view from the field:

A lot of homes have been sitting unsold for months. Real estate signs have faded, info boxes hang forlorn. Summer has turned to winter, but these homes are still waiting to be sold.

Main reason? They are over-priced. It's not what sellers want to hear, but if a home has had a lot of showings, but no offers, then it is the price.

But... that is not what this post is about.

There are a lot of buyers out there. And they are sick of having the same homes come up on their searches. They have seen every home in their price range. They have seen every home with features that they want. None of these excites them.

So what do these buyers want?

They are looking for fresh homes on the market! They are ready and willing to buy, and worried that interest rates are inching up.

Could yours be one of the fresh homes at a competitive price to grab their attention?

For a free market analysis, email me at vsashikant@gmail.com. The analysis is FREE and there's no obligation.

Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

For... all Real Estate matters!

Why Appraisals and Market Analyses are critical!

I just had a contract fall through. It is really frustrating when a contract falls through because the house does not appraise.

What is an appraisal?

An appraisal is the valuation of a property to determine the market price. It is done by a licensed appraiser who compares recent sales in the area, taking into consideration the location, size, age, and features of the house and its comparable houses.

A market analysis is also prepared to determine the market price of a property. It is prepared by a Realtor (like me) but on a simpler scale, and it also compares location, size and features of the subject property and it's 'comps'.

When the buyer showed interest in this particular house, I prepared a market analysis.

The house was listed at $400,000. The most appealing feature was that it was on a small lake (you could see the shores on the other side) and though older, had been maintained well.

My market analysis found that it was worth around $300,000. That is a big difference! In my comparison, all houses were water-front houses, and all had sold in the last 6 months for less than $100/SF. This house just did not justify the price.

My buyer, however, was very keen. Much against my wishes, we wrote out the contract for a price close to the asking price. I suggested that before he spent any money, he gets an appraisal done. Typically, the bank that he was getting his home loan from would order the appraisal.

The appraisal came back at $320,000!

At this stage, we know that the bank will give a loan for only $320,000. And not a penny more.

We had 2 choices:

1.      The seller drops his price to $320,000, or
2.      The buyer gets a loan for $320,000 and comes up with the difference.

In a market like Los Angeles or Chicago, buyers have been willing to come up with the difference. But in the Columbia market, this does not happen.

Well… the seller refused to lower the price, the buyer could not come up with the difference, so we canceled the contract!

For more details on home buying, call me on 803-348-9922 or email me at vsashikant@gmail.com.

 

Check out all homes for sale in Columbia and Lexington at www.homesincolumbiasc.net

 

For... all Real Estate matters!