Monday, May 5, 2014

Buyer discount in a slow Market?


Question: In a slow real estate market, what percentage can a buyer expect to save from an original asking price. Can a person save 5 percent? Ten percent?

Answer: There's no general rule which says that buyers are somehow entitled to a given discount in a slow market. Instead, you have to look at every transaction as being unique and consider such issues as the initial offering price, any seller contributions or concessions, the condition and location of the property, demand in the local area, the interest rate and the need for the owner to sell. Add it all up and a 10-percent discount may be too little, meaning you'll overpay for the property; just right, meaning both you and the seller will agree to a given price and terms; or too much, meaning the owner can do better with another buyer and you'll lose the house.

Friday, May 2, 2014

The American Dream

It is so nice to go into the homes of homeowners and actually give them good news. They can sell their home with a profit. It maybe a break even or small profit, but it is a profit. The market, especially in Indiana, is improving. The stalled engine in Illinois is showing signs of starting.          Could increased home values be far behind?
Maybe the Illinois legislators will stop raising property taxes. Increased taxes will cause higher inventory and lower demand. Basic economics says with this formula, home prices will continue to fall. By lowering taxes, demand will increase and supplies will fall. This will raise home values.