Think Positive!

Q. Are their any positives in this current real estate market?


A. There sure are! Think about the whole picture. It always makes good sense to trade up in a buyers market. When prices are lower, it’s a one-time shot to get your hands on a bigger chunk of equity. For example, if you sell a $200,000 home at a reduced price of $184,000, you’ve in effect lost $16,000. But, if you immediately turn around & buy a $300,000 home at the same 8% discount, you’ll save $24,000. You have just saved $8,000 ! Remember, prices are not just down in Lansing & Lynwood. You can probably save more than 8% in many markets!

Home Appreciation

Q. On average, how much do homes appreciate each year? I know markets are local, but is the market set to improve this Year as 2008 progresses?

A. No doubt there is some mathematical answer to your question of average appreciation, but the answer is relative for several reasons. First, past results do not guarantee future outcomes. 2nd, all real estate is unique, so what happens on average does not necessarily relate to a given property. 3rd, the assumption that homes will always appreciate each year is simply wrong. Granted, home prices have dramatically increased in the area over the past couple decades, but they have slipped a little over the past year. As to what will happen in 2008, there are predictions floating around, all based on assorted presumptions & assumptions which together are nothing but glorified guesses, hopes, wishes & bar bets. Don’t listen to the sensationalistic news that says the market is crashing. There will always be buyers out there and some years will produce more buyer’s than others.

The Home in the picture is located in South Lansing at 3423-186th St. Very affordable & well cared for home for only $119,800. 4 bedrooms. Huge Kitchen and a 2.5 car garage with a 9 ft high door, perfect for your large toys.

Clean & Updated Homes

Q. Our Home is Clean but not updated. How will this affect the value of my Home?

A. Having a clean home is, of course, very important to prospective buyers. It seems buyer’s these days want a home that is clean AND updated. The average current buyer works 2 jobs and/or has kids with many activities, so they do not have the time to spend updating their next home. So, unless your home is priced much below the updated homes which are your competition, you can probably expect your home to have a longer market time (in this current market). There are many homes for a buyer to choose from. They will pick the home that is the cleanest & the most updated.
How long the current ‘buyer’s market’ will last is anyone’s guess. The best advice we can give a seller in a “buyers” market, is to update your home. You will not only enjoy the great look, but it will pay for itself somewhere down the road.

Where Have all The Buyers Gone?

Where have all the buyers Gone? Many homeowners who are trying to sell their homes have been asking that. The simple answer is that these homeowners need to look in the mirror. That is because every seller is waiting for his or her transformation into a buyer.

The typical scenario is that a seller will put their home on the market and wait for offers to come in. However, in many cases the offers are not coming in due to the current market’s “adjustment”. And this has lead to a surplus of homes for sale and a scarcity of buyers. That is what happens in a slowdown; a logjam of buyers trapped in their current homes as sellers.

As the home seller, if you are going to “wait until the right buyer comes along”, or “wait for the market to catch up to your asking price”, then you could be waiting for a long time.

Unfortunately, many sellers will make the mistake of holding out for an unrealistic price well beyond the point that it makes economic sense to do so. These sellers will be missing the opportunity to get a good deal on their next home. By waiting (and hoping) for the market to change in their favor, these sellers are forgoing the benefits of the current buyers’ market.

You can’t have the best of both worlds. If you are holding out for an unrealistic sales price, then you are predicting that we will find ourselves in a sellers’ market-or at least trending in that direction. And we can’t be in both a buyers’ market & a sellers’ market at the same time.

Featured Home with the Pool Picture is located in Lansing. 2851-193rd St. Very nice Quad level with 4 bedrooms, 2 baths. Family room. Basement. Formal Dining room. Inground pool with slide and all the extras.