An Honest Look at the Real Estate Market

[GaryMike44]

Speculation and lies seem to be what makes the real estate market. With all of the rumors relating to foreclosure and interest rates, should you buy a home, should you sell a home, how long will a home sit on the market before selling and the list goes on and on. The one thing nobody is asking though, is does any of these speculations actually matter and how do they affect the average home owner?
Without beating around the bush here I can tell you that the real estate market does fluctuate, it always has and yes I mean always, all of the drama taking place in the real estate industry is nothing new. If you haven't already noticed, the housing market moves in tandem to the economy, its the way it works. Therefor, when the economy is going great, there is an abundance of jobs and workers are spending their money like its going out of style you will see the housing prices climbing up rather steadily. While this is taking place you will see that there are much less homes for sale, home sellers definitely have the upper hand on home buyers, at least where pricing and negotiations are concerned, and mortgage companies begin offering incentives on a regular basis just to get your business. During this cycle the real estate market and the economy are completely zen with one another.
However, as many of us already know, it can't always be good there has to be a change to stir things up. So as it often does, a downswing follows, those great incentives from the mortgage companies turn out to be really great for the mortgage company but not so great for a struggling family. The home that was bought when all was right with the world is suddenly a lodestone so heavy that it drags the owner toward foreclosure, and bankruptcy. Selling that same home becomes a nightmare, because often the price paid for it isn't anywhere near the price it will sell for now. Bank owned properties and foreclosures rates rise. Homes for sale sit on a market that is sluggish to non-existent. The job market falters, mortgage companies tighten the requirements for loans, and some close altogether. Food and gas prices rise. This sounds familiar, doesn't it?
If you need to sell your property, by all means put it up for sale, my suggestions are talk to a few agents, get a realist vision of the current market in your area and price your home to sell in that market. Listen to your Agent, they are after all the authority in this instance. Keep your home clutter free, and be open to showings at a moments notice. Don't price yourself out of the market, thinking that you'll take a lower offer, because the offers probably won't come and the house will set for months on end. If you owe more that the current market will support, you will either have to bring money to the closing table or hold on to the property until you are able to break even - that is your call, only you know your financial circumstances.

[george01]

Hey,

Such a nice informative article.

However, I just want to say if you are thinking for investment, it's the right time.