Real Estate

My House isn’t Selling in a Seller’s Market

 

Our market is currently moving at a fast pace, especially for homes less than $200,000. Currently, as of this writing, there are 3292 active single family listings in the Multi-Listing Service (MLS) and 1512 listings sold in the last 30 days.  Meaning that we currently have 2.18 months worth of inventory. Since a balanced market is six month’s worth of inventory, you can clearly see that we have a strong seller’s market.  However during that same time frame we also had 439 homes which were removed from the MLS by expiring or being released or withdrawn. So if the market is so strong why are so many homes not selling.

I believe the expectations of sellers is that since there is so little to buy on the market and homes are going so fast that you can throw anything out there and it will sell.  The homes that are not selling are not priced right or correctly marketed in my professional opinion.  Several of these homes need repairs or a good cleaning. Most buyer’s want something that is move in ready.

Buyer’s are shopping on the internet and want to see a home virtually prior to taking their time to visit the house in person. They are drawn to properties with good pictures and aerial shots if the property warrants it. Although you need to know when to use aerials and when not to.  They want good floor plans, and updated features. And of course they are looking for a great price or at least a fair one.  If the price is out of whack they won’t make an offer.  If the home has outdated features like wall paper and a lot of gold fixtures then the buyer’s are wanting to reduce the price to compensate for the work.  And for the most part these buyer’s are over estimating the cost of these updates.  Too much HGTV in my opinion, or they just don’t know who to call to get a good price on making updates.

Sometimes Sellers seeing other homes in their subdivision selling quicker than their home start to question what their realtor is doing or not doing to get their house to sell.  They demand more open houses, another broker’s open, more fliers.  Surely more marketing will do the trick. Let me assure you that when a realtor, any realtor, enters the listing into the MLS it goes to all the different websites.  There are hundred’s of them that pick up the listing and help to market it. So if your realtor has inputted everything correctly and uploaded great pictures (I use professional ones) people are going to see it. The true issue is most likely price or condition.  And any condition can be fixed by price. Because if it is cheap enough someone will see value in it and buy it.

So if your house hasn’t sold and it is currently off the market and you would like some advise, please feel free to reach out to me. Sandi Walker 405-213-2992 or visit my website http://www.equityhomesteam.com.   This is not intended as an advertisement to list a property currently on the market with another realtor.

 

Real Estate · Uncategorized

What is the difference between mortgage insurance and home insurance?

Sometimes my clients get confused with the difference between the types of insurance products that are part of a home loan. So to clarify the difference between them, I have summarized the difference between the two types of insurance policies.
Mortgage insurance is a fee that the buyer pays to insure the lender in case they default on the mortgage. This fee is needed if the buyer invests less than 20% in the property or obtains a FHA loan. As of June 2013, a buyer will pay the mortgage insurance for the life of the loan on a FHA loan. On a conventional loan the buyer will pay mortgage insurance until the value of the property reaches a 80/20 value rating. If a buyer purchases a home on a conventional loan with less than a 20% investment for below market value and then improves the property significantly (maybe a foreclosure) it would be advisable to get a market analysis to see if the property has a 80/20 value rating after the improvements. This can save the buyer significant money.
Home Insurance protects the home owner from the perils of nature and thief. It is required by the mortgage company if a loan is on the property. And personally I am not sure why you would not have home owners insurance even if your home was paid off. It is a protection for your investment. You will want to shop around for insurance as premiums and what they cover can drastically differ from company to company. Home insurance does not cover everything. One thing that it does not cover is flooding. If your home is in a designated flood zone, you will need a separate flood policy.
If you have questions regarding real estate, please feel free to contact me at 405-213-2992 or visit my website http://www.sandiwalker.net