According to Realestate.com, buyer’s remorse is one of the top ten mistakes made when purchasing a home. Finding the perfect home and making the decision to buy a home are not easy tasks. First, you spend hours on the computer researching South Central VT real estate and neighborhoods, perfecting your search criteria on MLS websites, and viewing many virtual tours. Then, you begin making appointments to go take a look at the ones you think stand a good chance at being the future home of your family.
As you walk through the house you envision the happy life you and your family would live and the future décor for this room and that room. You see houses that “require too much work,” “don’t have enough storage,” ones that are “too small” or maybe even one that is “do-able but not perfect.” Finally after weeks or even months of searching, you find “THE house.” Now you send in a promising offer and anxiously wait for feedback. You and seller come to an agreement and the offer is accepted. Once the papers are signed you can relax and enjoy the excitement, right?
A real estate Appraisal is not the same thing as a Comparative Market Analysis (CMA). A real estate Appraisal determines the market value of the property, which is an estimate of the sale price of the house. An Appraisal is mandatory when you are borrowing money from a lender to purchase a home. An Appraisal is done by a specially trained and experienced individual known as an appraiser.
On the other hand, a Comparative Market Analysis is used to determine a reasonable asking price based on the selling and listing prices of comparable real estate. This is conducted by the real estate agent listing the property. The sole purpose of a CMA is to help the real estate agent advise the sellers when trying to come up with an appropriate asking price. This is different from an appraisal because a Comparative Market Analysis helps determine the actual asking price, where as the appraisal reveals the property’s actual value. Appraisers usually use similar research on comparable properties as a factor in determining the property value.
Here are some myths and facts to help you lean more about the Appraisal of your Rutland VT real estate.
Many Rutland and Okemo Mountain VT home sellers look at the first offer on their home as just that, the First Offer with many more to come. You know what they say, ‘A bird in the hand is worth two in the bush.’ And in the current Buyers Market, offers are few and far between. Rutland and Okemo Mountain VT home sellers will want to consider the first offer very seriously. Here are reasons why:
- An early offer (if you’re lucky!) doesn’t necessarily mean buyers are lining up to follow suit. It could just mean that your home meets the needs or preferences of that one particular buyer who made the offer.
- Your home will get the most interest from buyers just after it goes on the market. The longer it stays on the market, the more “desperate” buyers will think you are, prompting lower and lower offers.
- Even if the first offer is thousands lower than your list price, consider carefully whether it might be enough — in terms of price and contract terms — before rejecting it out of hand. After all, the longer your home is on the market, the more it costs you in mortgage payments, taxes, insurance, upkeep and sheer inconvenience.
- If the offered price and contract terms are less than ideal, start negotiations by making a counteroffer, being as flexible with the terms as possible. It isn’t uncommon for buyers to offer a price below what they are truly willing to pay, sometimes much below, just to see if they can buy under market.
An offer indicates serious interest in your home — don’t underestimate that but don’t take it for granted, either.
Thinking of selling your Rutland or Okemo Mountain VT home? We’ll be happy to work with you to fine-tune your home’s listing price so it fits our local market. We can also advise you on what would make your home more saleable at low cost to you. Most importantly, we can put our expertise to work for you when it comes time to negotiate with potential buyers. Learn more about us by visiting ISellVermontRealEstate.com.
According to the recently released Real Estate Roundtable’s Sentiment Survey, real estate experts think market conditions are improving despite the credit crunch.
Nearly 60 percent of the survey’s 120 respondents expect market conditions to improve within a year. Although 88 percent of the respondents think loans are tougher to get now compared to a year ago, 68 percent predict conditions will improve in the next year.
Their optimism is based on an uptick in the Overall Q2 2009 Sentiment Index. Measured on a scale of 1-100, the index evaluates surveys from recent quarters and calculates an overall average. Currently the index rests at 41, up from 38 last quarter and 33 six months ago.
What do these figures really mean for Rutland VT home buyers? It means the market is bottoming out, prices have reached bottom or close to it and now is the time to buy a Rutland VT home. Don’t be one of those people next year who has to say, “I wish I had bought last year when prices were low.” Give me a call today and for the best deal on your next Rutland Vt home!
Pending home sales rose with many first-time buyers taking advantage of historically good housing affordability conditions, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, increased 3.2 percent to 84.6 from a level of 82.0 in February, and is 1.1 percent higher than March 2008 when it was 83.7.
Lawrence Yun, NAR chief economist, said it should take a few months for the market to gain momentum. “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a down payment,” he said. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”
Rutland VT real estate sales statistics for March indicate the local real estate market may have bottomed out and is once again on the upswing.
Rutland VT Real Estate Residential Sales Statistics
New Listings – March 2009: 45
New Listings – March 2008: 41
Sold Listings – March 2009: 12
Sold Listings – March 2009: 9
Median Sale Price – March 2009: $172,500
Median Sale Price – March 2008: $140,000
Average Days on Market – March 2009: 119
Average Days on Market – March 2008: 91
Learn more about Rutland VT real estate by visiting ISellVermontRealEstate.com.
If you are buying Rutland VT real estate, you will want to know what your credit score is. Lenders look at your credit history, debt-to-income ratio and your credit score when qualifying you for a home loan. Credit scores range between 200 and 800, with scores above 620 considered desirable for obtaining a mortgage. The following factors affect yourscore:
1. Your payment history. Did you pay your credit card obligations on time? If they were late, then how late? Bankruptcy filing, liens, and collection activity also impact your history.
2. How much you owe. If you owe a great deal of money on numerous accounts, it can indicate that you are overextended. However, it’s a good thing if you have a good proportion of balances to total credit limits.
3. The length of your credit history. In general, the longer you have had accounts opened, the better. The average consumer’s oldest obligation is 14 years old, indicating that he or she has been managing credit for some time, according to Fair Isaac Corp., and only one in 20 consumers have credit histories shorter than 2 years.
4. How much new credit you have. New credit, either installment payments or new credit cards, are considered more risky, even if you pay them promptly.
5. The types of credit you use. Generally, it’s desirable to have more than one type of credit – installment loans, credit cards, and a mortgage, for example.
For more on evaluating and understanding your credit score, visit www.myfico.com.
Are you thinking of buying Rutland VT real estate. Learn about the home buying process at ISellVermontRealEstate.com or give me a call for more personal service, 800-659-1819 .
Reprinted from Realtor Magazine with permission of the National Association of Realtors.