Rob & Jeannie Steward

It is a far worse thing is to stay priced over current market values and to continue the downward spiral of decline while attracting no offers than to price your home according to the current market conditions.

While the mortgage market has become more stringent with loan approvals, the general consensus of any number of market analysis trends continue to show less stability on the horizon. With that we may expect to see the downward trend continue (see article links below). The recommended correction to attract offers is a price adjustment of 5% to 8% assuming that they were priced near market to begin with, or to put it another way, priced close to appraisal value. Now please don't shoot the messenger. These are statistics specific to our region, though similar stats span the entire country. And mortgage lenders utilize all of these factors to determine risk.

The danger that comes with not making any adjustments until all the others follow suit is what we refer to as 'chasing the market'. These are the homes which are always the bridesmaid and never the bride. Previous homes which were priced to the market 'sold comps' 6 to 12 months ago have for the most part sold. Of course the planets were in perfect alignment, they were marketed appropriately and they had a buyer come through in the right place at the right time. However if the three legged stool of 'Price, Terms and Condition' were in place, it would be safe to assume that offers would follow. In any market people are always buying and selling houses. And everyone is looking for a deal. I don't know of anyone who would pay 25% over the sticker price of a new vehicle. The same theory applies to the housing market. And as recent predictions have the housing market declining a bunch before years end and a minimum of 10% after the first of the year, the need to price accurately according to market conditions is increasingly imperative.

Will people come out of the woodwork for a fair market value deal? Maybe as it will be most attractive. Will more come out for a 'value priced' deal? Perhaps, and even multiple offers have been know to occur. Do you have to accept any offers that come in? No! Yet once people become vested in the contract process spending several hours pre-qualifying, writing the offer and providing the earnest money deposit, it is surprising how they can begin to bid themselves up when they meet up with seller resistance. Once on paper they have made the decision to pursue a home purchase which is perhaps the largest purchase they will ever make. They have researched the area and resolved to reside there for a committed period of time. They will be educated by their Realtor if the property is priced correctly to the market and that it wasn't over priced by the seller to end up at a price the seller expected to get after negotiations. They will be made to see the value. The decision to bail and find another property and begin the process of jumping through those hoops all over again is not appealing in the least.

Anyhow, here are some interesting articles. I hope that the financial world stabilizes sooner then later. The "R" word (recession) is being bantered about more and more in the news these days. Even more frightening when they use the word 'global' in conjunction with it.

YOU’RE INVITED!

Come And Find Out...

• • What’s happening with today’s real estate market.
  • Available financing options.
  • How Weichert simplifies the home buying process.

Free Home Buying Seminar ~ Saturday November 15th ~ 11:AM to Noon

20400 Observation Drive - Suite 200, Germantown, MD. 20876

Topics discussed:

Process of buying a home ~ Current Market Statistics & Trends ~ Benefits of using a Buyers Agent ~ Benefits of Loan Pre-approval ~ Benefits of Owning vs Renting ~ First Time Home Buyers Benefits, Incentives & Special Loan Programs ~ New Tax Credit For Home Buyers (Up To $7500)

Our Weichert Financial Gold Services Manager Will Be Available To Answer Any Questions.

Useful information for the experienced buyer and first time homebuyer. Light food and beverage served! Please call or e-mail Rob & Jeannie to RSVP. Rob.Jeannie@gmail.com ~ (301) 213-7351

Buyers Prefer One-Stop Shopping

According to the National Association of Realtors’ One-Stop Shopping Consumer Preferences survey. The survey determined that a large majority of recent and future buyers would consider using one-stop shopping, like that offered by some of the larger brokerages, in the homebuying process. Results also showed that of the majority of buyers who were happy with their latest real estate transaction; the most satisfied buyers were those that used one-stop shopping.

Statistics from the survey include:

• 93 percent of homebuyers would consider using one-stop shopping. The number of recent buyers who used a one-stop shopping service increased 45 percent from 2002 to 2008.
• Nearly twice as many recent buyers in 2008 report using a Sales Associate whose office offered a full range of buying services compared to 2002.
• The biggest perceived advantages of one-stop shopping are saving money (77 percent), increased efficiency/manageability (73 percent), convenience (73 percent) and things not falling through the cracks (73 percent).
• The average satisfaction score for overall experience of buying a home was 7.9, on a 10 point scale where 10 meant “completely satisfied.” Recent buyers were most satisfied with their Sales Associate and homeowner’s insurance (8.3).
• One-stop shoppers were more satisfied with their overall experience than those who used multiple sources (8.3 vs. 7.6). When it comes to buying a home, they were also more likely to report that they would prefer service providers to be affiliated with a Sales Associate (35 percent vs. 18 percent).

October is National Fire Prevention Month, which makes it an opportune time to review fire safety and prevention in your home. According to Meri-K Appy, president of the Home Safety Council, the time it takes to prevent fires is time well spent. In fact, Appy points out that purchasing only a few items can make all the difference in keeping every household safe.

Every household should have a fire escape plan, proper fire extinguishers, carbon monoxide detectors and smoke detectors on every floor. According to the United States Fire Administration (USFA), different types of fires require different types of extinguishers, so do your research. (Click here to review the different types, as well as other information on fire extinguisher safety.)

Other tips to keep your home safe from fires:

• Watch what you eat: According to the USFA, cooking equipment left on the stove or range is the leading cause of reported home fires and home injuries. Always stay by the stove when cooking. If you do have to leave the room, make sure to turn off the fire.

• Use caution with electric space heaters: In the winter, heating surpasses cooking as the most commonly reported cause of home fires. Make sure space heaters are positioned at least three feet away from furniture and draperies, while always out of reach of children and pets. Never use a space heater when you are not in the room or when you are asleep.

• Follow electricity code requirements: Old wiring, flickering lights or too many things plugged into each outlet may be signs that you should consult a licensed electrician. Never use frayed or cracked extension cords and try to only plug one cord into an electrical outlet.

• Light with caution: Candles, fireplaces, oil lamps and chimeneas should be carefully monitored when used. According to the USFA, candles cause an estimated 15,600 fires in residential structures each year. Try to use battery-operated electric candles or place wax candles and oil lamps in a sturdy, non-flammable holder.

For more tips on fire safety and prevention, please click here to visit the United States Fire Administration Web site and click here to visit the Home Safety Council site.