Hey Bob, How’s the Market?

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Prices are coming down…

The market in Frederick MD is not doing too bad. You always her from the National Association of REALTORS® that it’s a great time to buy…and it is.  Sure it’s marketing, but it is applicable here.  Prices are still coming down in the area.  And there are some great deals to be had…I can speak to that because of the latest contracts that I have helped buyers negotiate.  A few are better than 10% less than asking price.  You have to do your homework.  Don’t waste your time by just going out and trying to find the lowest priced home and then making an offer.  Why? Chances are if the home is priced very low…you are not going to be the only one trying to purchase it. Yes, in this market there are multiple offers on homes. Banks have been creating a stir by offering homes at a very low price and causing buyers to compete for the home. So low ball offers are a waste of everyone’s time.

Price is not everything…

When you find the right home, you will know it.  You will get that “I feel like I am home” feeling and want to make an offer.   Do your research.  Make sure you are making a legitimate offer.  Sure it’s a buyers market, but that doesn’t mean you can disrespect the sellers asking price.  Granted there might be times when the seller is not in touch with the market and be asking way too much for the home.  Help them understand why you are offering what you are offering.  Have your buyers agent provide supporting documents on recent sales.  (aka CMA)  Banks even reject low offers without countering.  But now back to why price is not everything… Sometimes price is not the only factor in a sell.  Banks lose money the longer they have it on the market.  They are paying insurance, interest, utilities etc.  This cost adds up quickly.  So, if you are competing for a home…time is money too.  A quick closing date might mean a world of difference.  This also applies to homeowners selling too.  They may need to get out before a certain time for either financial reasons or business reasons.  In this case, they are less susceptible to accept an offer contingent on the sale of your home.  In other words, it is best that you sell your home first then go looking.  Would you wait for someone to sell their home so you can move?  That could take a long time and there is no guarantee that it will sell. You will lose valuable time.  Contingencies are another factor in your offer that might mean more than offer price.  If you are willing to reduce the amount of contingencies, that also might help you win the offer.

It’s all about the negotiation…

First and foremost you can speculate about what the market is doing, but until you go out and buy or sell something…it really doesn’t make a difference about what it’s doing.  It has no impact on your home what so ever.  Really, it doesn’t.  Think about it.  If you are not selling right now and don’t plan on it, then the price of your neighbor is not going to affect you…right now.  You didn’t lose any money and you won’t make any.  What really counts in the real estate market is the day you buy your home and the day you sell your home.  Between point A and point B has relevancy but no impact on your wealth.  (unless of course you refi and cash out…that’s the gamble you take)   In the end it comes down to negotiations.  The Sellers Agent is doing all eh/she can do to keep as much equity in the sellers pocket and the  Buyers Agent is doing that for the buyer. When the two finally meet they have to agree upon all the terms of the offer.  This is all done through the negotiations of all parties involve.  A little give and take.  And again, price might not be all that important.

Most importantly…

You have the desire to buy or sell a home.  Get out there and find the right home for YOU and then make it the deal of a life time.  Interest rates are low and prices are…negotiable!

Call me when you’re ready…

Bob Carney 240-285-4918

Oh by the way here are some numbers for Frederick County.

  • Total Homes on market today - 2,298
  • Number of Single Family - 1,366
  • Number of Town Homes - 504
  • Number of Condos - 162
  • New listings the last 2 days - 7 (low due to holiday weekend)
  • Under Contract the past 7 days - 42

Have a great day.

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July 7, 2008 · Filed Under Frederick MD Real Estate

Comments

One Response to “Hey Bob, How’s the Market?”

  1. Rick NHS on July 9th, 2008 1:55 pm

    Great advice, Bob! Your advice can be applicable to home buyers from coast-to-coast. I too think that now is a great time to buy, even if home prices continue to drop… the decrease (for most communities) will not likely be significant. With that said, when the market does rebound, people who buy a home now will find they’ve made a great investment.

    Rick NHSs last blog post..Thinking About Remodeling Your Existing Home?

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