Jameson Real Estate Chicago
The reality of this market is that there are still many homes for sale holding down the demand to buy and forcing the prices to drop. I make sure to explain this to my clients, and therefore, I am able to offer incentives, credits and bonuses to sell my listings before reducing the asking price. Every buyer is interested in his or her bottom line. My clients do not necessarily have to reduce the price, as offering credits or other incentives work as effectively. Unfortunately, to explain the above to previous buyers who bought at the higher prices is tough. I tell my clients that buying real estate is still a great investment; if they hold it for 20 years, I guarantee that the home will increase in value. Or, if they need to sell today, my advice is to sell and buy, as they will make up the difference lost on the purchase. In addition, many of my clients are ahead of the real estate curve by staying enrolled in a free weekly neighborhood market report, via this web link: signup.jameson.com/ilonamikula.
Ryan Hill Realty Naperville
Today, Realtors face new challenges with regard to pricing since market values are changing each month. Realtors should be armed with true market conditions: the number of competing homes for sale, recent sold comparables in the area and the absorption rate of homes in the area. The challenges facing sellers relates directly to the economy, unemployment and the new guidelines for mortgages. The value of property is determined by what a buyer is willing to pay in todayâ€™s market based on comparable properties in the area. The mind set needed for todayâ€™s agent is to sharpen your pencil when you list a home to save yourself the possibility of future price reduction conversations. Each of us as Realtors are bound to the Code of Ethics, Article 1.3: Realtors, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.
First of all, Chicago has a very high level of inventory. There were so many condos built and converted that when the market began to head south we still had lots of â€œnewâ€ inventory. The supply far outweighs our demand, hence lower pricing. Secondly, the peak pricing of the real estate boom has also led to difficult times. Most people took very high LTV financing options that were previously available. Since many of these properties were overleveraged, they have turned into foreclosures and short sales. Thirdly, the amount of buyers who can get a loan are not as high as the supply is. This will lead to decreased pricing now and through the next two years. Fourthly, buyer attitudes have made it very difficult to get a fair market value offer. Buyers are looking to get a good deal, causing many sellers to drop pricing. Foreclosures and short sales are literally recreating market values in many neighborhoods.