October 5, 2007

Real Estate Update

Excuse me, your slip is showing... and other mistakes

By Donna Nardi
Special to the Times

With the onset of the loan crisis, many sellers and buyers are panicking. Many fearful buyers think prices will drop further, and sellers fear their home won’t sell in a timely fashion, if at all. While the “crisis” certainly has an impact, it need not cause unnecessary worry. We will explore ways to “outsmart” it.

Even during this so-called crisis, recent national survey results show 86 percent of respondents say they are getting at least 90 percent of their asking price. In California, the percentage rate is even higher – 95 percent of the asking price is being offered. Rather astounding, after all the bad press about the loan crisis.

More than ever, sellers need to prepare their homes carefully to attract the right buyer. Now is the time to market the home, not merely advertise it. Marketing appeals to the right audience and buyer. Or, as we could call it, smart advertising.

If the home is in a great school district, appeal to families with children. Capitalize on the schools’ high ratings. Prepare the flyers with school statistics. List the many parks and family attractions surrounding the neighborhood.

Not all homes need full-blown staging. The majority of homes can be “staged” by the homeowner and their realtor, who should have a wealth of information and experience along these lines. Cleanliness and good repair cannot be over-stressed.

Many sellers pass up the first offer, believing there must be a better one right behind it. Not necessarily so, especially in today’s climate! If they have a good down payment and are pre-qualified with a solid lender, work with them. Another advantage - if you receive another offer, you can disclose you are working with multiple offers.

Be leery of buyers adding contingencies – especially when the contingency is for their current home to be sold before they can purchase yours. In this market, no one knows how soon a home will sell. It would be wise to counter back with a 72-hour release clause, which will allow 72 hours to exercise the purchase contract, or rescind their offer should you receive a ready, willing and able buyers’ offer.

Let’s talk about buyers. There are still loans available to qualified borrowers. If you want to purchase a home:

Don’t over spend on “things” right now

Don’t make big-ticket purchases- i.e.; car, furniture, etc.

Don’t apply for credit cards, or any credit, besides the mortgage at this time

Do run your own credit report and repair any errors

Do verify how much money you have available for the down payment

Do choose your loan broker very carefully

Do choose a realtor with integrity

And so we see, there are still many ways to buy and sell a home. It all begins with thinking differently than in the past. By following these guidelines, you should be able to successfully complete your next real estate transaction with ease.

Donna Nardi is a Realtor and Senior Real Estate Specialist with Prudential California Realty in San Jose. You may reach her at (408) 313-3169, or donna.nardi@prurealty.com, www.HappyWayHome.com.