One of the most important decisions a home owner who has decided to sell their home can make is what the list price of the home should be. Emotions, financial strains, and decisions based on inaccurate or misunderstood information can lead to a disappointing and frustrating sales process.
In an article published by Realtor.com, Cathie Ericson helps debunk home pricing myths that might have home sellers hung up on their list price. Reviewing these myths and understanding the truth about the pricing, listing and hopefully selling a home will help sellers start out on the right foot.
One myth sellers may believe that if a home is overpriced, it can just be lowered later without any negative effects. As Ericson points out, lowering a price is not a quick and easy fix. Many house hunters notice when a home has been on the market for a while and know when there have been numerous price reductions. As she states, “… buyers presume that something must be wrong with it. As such, they might still steer clear, or offer even less than the price you’re now asking.”
When deciding on a listing price, sellers may be turned off by the idea of pricing their home too low, assuming they will not make as much money in the sale. However, low priced homes might just attract more buyers and the increased interest in the home might result in a bidding war.
The article details the truth behind other myths such as recouping 100% of the cost of home renovations, the real estate agent’s stake in the pricing strategy and the whether all home owners make money on the sale of their home. Read the entire article.
Over the past few weeks, mortgage rate averages had increased slightly. However, the rates actually dipped lower last week and could continue to drop further this week. This decrease is a direct result of the release of economic data which pushed investors to purchase bonds. Consequently, mortgage rates averages dipped in line with the long-term bond yields.
Specifically, the 30-year mortgage rate average dropped to a low 3.61 percent, hovering near the lowest rates of 2016. Similarly, the 15-year rate average drifted down to 2.86 percent. Freddie Mac chief economist , Sean Becketti, summarized the mortgage rate trends for the year, “…Since the start of February, mortgage rates have varied within a narrow range providing an extended period for house hunters to take advantage of historically low rates.”
An article released by the Washington Post by Kathy Orton, also noted credit availability has loosened as a result of programs from Freddie Mac and Fannie Mae which allow for a low down payment. Read the entire article.
Image Credit: Life’s A Beach Real Estate
Even if you think you’ve found the perfect home in a great neighborhood, you owe it to yourself to make sure you perform due diligence to ensure there are no unpleasant surprises down the road. In a new article this week, Realtor.com advises homebuyers to go the extra mile and take six smart steps before making an offer. In addition to doing a nighttime drive-by, the article recommends understanding the neighborhood’s zoning. The area may not have retail shops around the corner now, but if it is zoned for mixed use, you could be subject to high traffic and crowd noise if a strip mall opens behind your home down the road.
To learn more, read the entire article.
Image Source: Joe Mabel