Market News: Spring 2010
Posted on | January 25, 2010 | No Comments
Most of us do not mind paying the bill when we go out to lunch. We might sometimes go to a restaurant where we know the food is good and the prices are modest and feel satisfied that we received a good value, maybe even a good deal. But we don’t really expect to get a “free lunch”.
Selling and buying real estate is pretty much the same as eating lunch. Generally you get what you pay for and you have to give a decent value to find someone willing to buy what you offer. This is because there is a market, there are a large number of players in the game. If you ask too much for your house, the buyers will buy other houses. If you’re not willing to pay what a house is worth, someone else will.
This is especially true at this time in our market, Berkeley, Albany, Kensington, El Cerrito, North Oakland, Montclair, Piedmont. These are all places where people want to live. The houses are nice, the shops and restaurants and entertainment facilities are the height of fashion, there are nice places to walk. Prices are higher here than in other places. If a buyer cannot afford to live here, they can, however unwillingly, move farther North, or South, and find something for less.
Even though prices may be higher here than in Rodeo, or Hercules, or Fremont or San Leandro, the market dynamic still keeps things on track. You can, if you are patient, prepared and ready to jump when the opportunity arises, get a good value, maybe even something we might all agree to call a pretty good deal, but you can’t get a free lunch. If you’re selling and you do a good job of preparing your house for sale, and if you price it realistically, you may very well be quite satisfied with the resulting price you receive. But you are not likely to receive the dream price you were fantasizing about a few years ago.
Our market is very strong. Prices have dipped a little over the past couple of years, but nowhere near like they have in other areas. There is very little inventory, frequently resulting in multiple offers. Some banks are still leery about actually making loans, sometimes skewing their appraisals toward the low side.
Buyers need to have much better credit, higher income and stronger reserves, than they needed during the boom. Down payments need to be higher and pre-approval is a must. A good agent who knows the territory will be one of your best assets.
Sellers need to do everything the can to make their property as attractive as it can be. You do not need to spend tens of thousands remodeling. You just need to spit and polish to the max. Then you need an experienced agent who can help you achieve this level of preparation, help you price the house at the point where it will attract the best offer, and help you qualify the potential buyers regarding their circumstances and financing so as to make sure the sale goes through.
Whether buying or selling your diligence and preparation and your agent’s experience will carry the day.
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