| $cott 2006-04-06, 11:21 pm |
| According to the National Association of Realtors (NAR), 2005 set the
fifth consecutive U.S. annual record for sales of existing and new
homes. Last October, NAR's chief economist, David Lereah, said, "An
uptrend in mortgage interest rates will cause some slowing of the sales
pace, but we forecast 2006 to be the second highest year on record and
housing will continue to support the overall economy."
That's particularly good news if you are a homeowner who has been
thinking about selling your home but held off for fear you wouldn't be
able to buy another one.
Bear in mind, the NAR's predictions apply to the nation as a whole.
Specific areas, however, have their own market dynamics. You'll do well
to work with a real estate professional who can tell you exactly what's
going on in the areas you want to sell from and buy into.
That being said, when a market starts to shift from the seller's
advantage to the buyer's, moving up to a new home actually becomes
easier. Here's why:
1. A slight shift to the buyer's advantage isn't likely to decrease
the value of your current home. Typically, the rate of your home's
appreciation will just slow down some from what you've been used to in
a strong seller's market. You're still in a good position to convert
the equity from your current home into your next home.
2. You'll find more homes on the market to choose from. Rather than
settling for the only home you can get a contract on, you have more
opportunity to find a home you really want.
3. Sellers will be more likely to accept "contingencies" with your
offer-such as a satisfactory home inspection; sale of your old home; an
appraisal that supports your contract price; and/or your ability to
obtain financing with specified terms. You may also be able to get more
concessions-move-in date, conveyances, etc.-that don't usually come
into play in a strong seller's market. Remember, though, as a seller
you may have to provide some of the same types of concessions to get
your home sold at the price you want in a timely way.
4. In a "slower" market, there's less competition for the services of
appraisers, title insurers, and other "third-parties" to the
transaction. They're likely to render their services more quickly,
allowing you to sell your old home and purchase your new one with less
waiting time.
You can find more articles like this by subscribing to my newsletter or
by visiting www.RealEstate-IQ.com.
Regards,
Scott Miller
National Commercial and Residential Lender/Broker
1.877.716.6495
EZMortgageLoanz@aol.com
www.RealEstate-IQ.com
www.EZMortgageLoanz.com
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