The Top Ten Reasons Why It's Still a Great Real Estate Market
We all must be vigilent when we hear stories from national outlets "tearing down" the real estate industry by saying that home sales are slumping, foreclosures are at a record high, and interest rates are skyrocketing. That is simply not the case everywhere in the country, and especially so in Cedar Rapids. Real estate sales are on par with record setting paces, buyers have more to choose from than ever, and sellers would be wise to make sure their house is "move in" ready. So here is the top list of all the reasons why this market is still great and stronger than ever.
Selection: There is more selection than ever for buyers to choose from. Keep in mind, if you are a buyer during this time of year, you are serious and you need to purchase in the very near future. You can afford to be choosy because there is lots of inventory to choose from. That choice in inventory gives the buyer flexibility in negotiating an asking price, and ultimately ending up with a sweet deal at the closing table.
Take your time: Buyers can afford to take their time and locate their perfect home. We are not in a market where you need to immediately try and trump the next potential offer coming down the pike in order to get your house. Relax, find what you're looking for, get your financing straight and make that educated offer.
Interest Rates: Interest rates are still great and have stabilized somewhat after a bumpy fall. Sub prime lenders have tightened their prospective "lending belts" but if you've got good credit, you are going to get the best interest rates.
Financing Programs: Ever hear of an interest only loan. If you have, that might strike fear into your heart but you could be mis-informed. Interest only loans are good if you are disciplined enough to make the principal payment each and every month. However, say you have a bad month and your car needs servicing. You could use the extra money you would have paid into your principal to pay for your car. Then get back on track the next month with your paying of principal as well as your interest.
Don't be afraid to make an offer: Homes are selling for between 97-98% of the asking price in general, but don't be afraid to go lower than that, especially if a house has been on the market for a while. Seller's at this point become extremely motivated to sell the house and get on with their lives so don't be afraid to make such an offer. What's the worse that can happen?
If you are a seller and your house is in tip top shape, you can expect to sell your house quicker and for most of the asking price. Buyers are very educated in today's real estate market, and know a value when they see it.
Location: Homes are everywhere, close to work, parks, major highways, shopping centers, relatives, etc. You can expect to find a home closer to your preferences now more than ever.
Condition: Today's homes on the market are in better condition than ever before. Major mechanicals are being replaced more like furnaces, A/C units, roofs, plumbing, outdated appliances, etc. Buyer's can really get a good deal on a home and not have it be a "black hole" for money years down the road.
Home Warranty: I don't know about other markets but Home Warranties are becoming standard place in real estate transactions, even if homes with newer mechanicals are in place. It is the best insurance policy in the world. Most Home Warranties cost around $350 -$400 a year and if something breaks down like your A/C or furnace and needs replacing, it's a $100 deductible.
Real Estate Agents: Okay, I might be giving away the farm here, but real estate agents are better trained than ever. At Skogman Realty, we have the prestigious SkillPath and Development Center, one of the best training facilities in the state of Iowa. Our agents come out of that training center well qualified to carry out your real estate transaction. For "Service With a Smith," contact Christopher Smith at 329-5988 or email christopher@skogman.com