Affordability is near an incomparable high. With less than 4.5% in 30-year-fixed and below 4% on 15-year-fixed rate loans, interest are at historic lows. Other than the interest, house prices are low in most of the country, likewise, Carmel CA Homes. However, according to data released by National Association of Realtors, home sales are only slowly crawling up. Furthermore, sellers are evidently still feeling pricing pressure; In October, an online real estate service issued a price reduction report, a record soaring 27% of homes, including Carmel CA Homes, listed for sale cut their home prices at least one time.
Here are some of the reasons why Buyers are not jumping in and what can sellers and listing agents do to counteract the problems.
1. Perceived difficulties in qualifying for a mortgage. Mortgage guidelines have tightened significantly over the last few years. Some buyers find it difficult to make the down payment money up; others find that they can qualify, but not for a large enough mortgage to buy any home worth having. Many possible buyers don’t even count themselves serious prospects because they heard somewhere that a 20 percent down payment is required, where in reality, many buyers can qualify for a 3.5 % down FHA loan. Between factual difficulties qualifying and perceived difficulties that do not really exist, lots of buyers are not biting because of loan “issues”.
What sellers can do: Ask their agent to have a mortgage broker make flyers showing different loan options, to give possible buyers a reality check about what it would actually take to buy Carmel CA Homes. Also, consider offering closing cost credits or being willing to chip in for lender-required repairs to empower buyers who are struggling with mortgage qualifying to close the deal.
2. Fear of buying a foreclosure. The ongoing foreclosure freeze is beginning to play a role. If you haven’t heard, two of America’s largest mortgage servicers and Bank of America, have frozen almost all foreclosure, all because comprehensive fraud and improprieties in processing foreclosure documentation have been revealed. Increasing numbers of buyers are fearful that if they buy a foreclosed home, that sale could be reversed down the road if it comes out that the banks wrongfully foreclosed on the former owner.
What sellers can do: If your home is not a short sale, all of your marketing materials should be stating this fact – especially if most of your home’s competitions are REO homes and short sales.
3. Waiting for the shadow inventory to appear. Many buyers who are actively house hunting are fearful because they believe the banks are going to start putting out their ‘shadow inventory’ soon, and that those homes will be better than what’s out there on the market right now.
What sellers can do: Work with your agent to strategically stage your home and even do simple, low-cost repairs, to have more leverage against the competition. Also, ensure that your pricing is in line with similar Carmel CA Homes on the market right now, to make certain that your home seems like a very strong value for the price.
4. Waiting for the bottom. There’s a large contingent of buyers who are afraid that after they buy, home price will continue to fall, given the prices of Carmel CA Homes over the years. These are folks who are still waiting for the bottom.
What sellers can do: This is a hard one to counter, because it’s really more about the possible buyer’s reading of the market than about their reaction to your home. If you live in a market that has had recent increases in home values, include that data in your marketing – make sure buyers are aware that they may already have missed the very bottom, and create a sense of urgency to buy your home before prices go up even more.
5. Unemployment/underemployment. California’s unemployment rate is a whopping 12.8%. The same numbers of Californians are underemployed. Many people who have jobs lack job security. Interest rates could be zero, and people will not buy homes as long as they have no jobs or job security.
What sellers can do: If there are major employers in town that are within an easy travel of your home, both you and your agent should consider selling it straight to employees there. Share your home’s listing with Facebook friends who work there or if you work there yourself, send an email out to your own contacts. Human Resources Departments of major companies might help you spread the word out to their employees.
6. Need to keep options open. It’s not guaranteed that you can resell new home without taking a loss as home values are so unpredictable. Given the changes in the job market Many Americans don’t want to be stuck in one place, geographically speaking. They want the freedom to move across the country or even to the next city or state for a job; if that’s the direction their career takes them. The more mobile the person, the more improbable they are to purchase a home.
What sellers can do: If your home has been lagging on the market, Price it well, make sure you get motivated and slash the price below a common buyer search price point. Even serious buyers of Carmel CA Homes in the market, get nervous about buying a home when it seems a bit high-priced, because they fear the price will drop some more. You could lose buyers who otherwise would have bought your home, because of overpricing.