The roller coaster ride of our nation’s economic health brings to mind that dear character from our childhood, Chicken Little, who screamed, “The sky is falling!”
We’ll perhaps it isn’t the sky, but rather, it’s house appraisals that are falling. As I’ve mentioned in previous blogs, real estate is primarily about supply and demand. Right now we have a huge supply and very little demand. Add to the supply of homes the growing number of foreclosures and short sales, mix in a dwindling number of buyers, and add a dash of fear with the numerous mergers and sales of lending institutions, and what do you have? Steadily declining home values.
What does this mean if you are selling a home? It means that every month that your house is still on the market, the comparables used in pricing your home change – and not for the better. It means that between the time that your house goes under contract and the time that the appraisal is completed, the value might be lower than what you sold your house for. It means that if the appraisal is lower than the contract price, the buyer will most likely ask you to reduce your contract price to match the appraisal price, and if you refuse, you’ll probably lose the sale.
Bottom line here is that pricing your house to sell is crucial in this market because the longer it sits on the “Active” list, the less you will get for it.
If you would like some tips on pricing your home, click here to receive our brochure, Pricing and Preparing Your Home to Sell for Top Dollar. For a FREE, No Obligation valuation of your home, CLICK HERE.
On a brighter note, we’re hoping to see you at the Mays Chapel Fall Festival next Saturday, September 27th, from 11:00 a.m.-3:00 p.m., held at Graul’s Market in Timonium. Lots of fun and food to enjoy. Jesse and I are sponsoring a balloon twister and face painter for the children. There will be a band, wine tasting, food sampling, and freebies, so if you come by, please stop by the face painting table and say hello to us.
Wishing you sunshine everyday and the home of your dreams,
Jeri
