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.

Home, Home on the Not So Normal Range

A Real Estate Story. Some Say it is true:

A client bought a new home and the broker wanted to send flowers for the occasion. They arrived at the home and the owner read the card; it said "Rest in Peace."

The owner was angry and called the florist to complain. After he told the florist of the obvious mistake and how angry he was, the florist said. "Sir, I'm really sorry for the mistake, but rather than getting angry you should imagine this: Somewhere there is a funeral taking place today, and they have flowers with a note saying, "Congratulations on your new home!"

Real Estate Facts & Comments

The National Association of Realtors has a very interesting website called Housingmarketfacts.com. Here are a few statistics:

• Over the past 30 years, home values have risen more than 6% annually.


• On average, a home price will double every 10 years.
  


• 60% of an average homeowner’s wealth comes from their home’s equity.


• The average homeowner’s net worth is $171,000. Renter’s have an average net worth of $4800.
  So STOP listening to the bad news. Watch the good news channel for a change. People change jobs & families grow making the buying of homes a necessity. The bottom line is take care of your home, do some updating,
  and your home will sell for a good price.

Featured Home is a Custom Built Brick Ranch with everything on the main level....Spacious (dream) Kitchen. Family room. Laundry room. Attached garage. Large yard. Hardwood floors. So many features. So well cared for. $175,900. Located at 2302 185th St in Lansing. More info & pictures at: www.coldwellbankeronline.com/06777536 or www.Cathyhiggins.com (view my listings)

Timing Your Next Purchase with the Market

Should you try and Time the Market for your Home Purchase?

Assuming you can figure out the ideal time to buy - that is, when prices have not only hit their low, but are on the verge of rebounding - by the time you find the house you want, line up the financing and close the deal, the "best" time may have already passed.
We feel now is an excellent time to buy, and a good time to sell if you are going to ‘move up’ — that is, buy a house more expensive than your current house — because you will probably end up catching a proportionately bigger price break on the new house than you may be giving up on the old house.
If the house of your dreams is available, go for it. After all, it may not be available months from now. Plus, interest rates are still fantastic.
As long as you plan on staying in the home for a while, any further drop in prices will be offset by once again rising prices sometime down the road. In all likelihood, you'll make money in the long run. That’s what history has taught us. The bottom line is: the best deal could be right now.

The Condo in the Picture is at 10340 White Oak Lane in Munster's White Oak Estates.
1625 sq ft with 3 bedrooms and 2 baths. 2nd floor with a Private Balcony. Attached garage.
For further information, call us or go to: www.Cathyhiggins.com (view my listings)