The Changing Face of Real Estate!
If there is one lesson to be learned In the past several years, it is that the face of Real Estate never stays the same. Historically, markets tend to run in about ten year cycles. They go up and they go down. The difference with the latest cycle is that values accelerated at an extremely fast rate, and then crashed back down just as quickly. Everyone is feeling the frustration of these rapid changes from Seller to Buyer, Lender to Consumer, and throughout the Real Estate Community.
With all the changes it is no wonder the consumer is a little wary and unsure about what to do in such a volatile marketplace. Buyers and Sellers alike are uncertain what their next move should be.
There are no easy answers. A lot depends on your individual circumstances and what your goals are for the future. If you need a place to live it is a great time to buy. Home prices are the best they have been in over a decade. Interest rates are very low and that gives you more buying power.
It can also be a good time to buy that Second Home or an Investment Property because prices have fallen back to near pre-boom levels in many areas. You do need to think of the purchase a long term proposition though. The days of buying, flipping, and making a fast buck are behind us. You need to be prepared to hold that property for several years before selling. Values are stabilizing and in some cases increasing, but it is happening at a very slow pace. Real Estate was never intended to be a short term investment. Values will fluctuate with the Economic Conditions of the day and that means over the long haul it will likely increase in value, but there may be times when that does not occur and in fact can lose value over the short term.
Another consideration is your own personal economic situation. Lending is still very tight and lenders are scrutinizing files very carefully. They will ask for the same information over and over during the loan process and while it is frustrating to keep providing the same information over and over, Government regulation of the lending industry has made it necessary. I read an article recently in Forbes Magazine and the title was something like, It isn't about the perfect loan, it is about the perfect loan file. That is really the truth of the matter, they have regulated the lending industry to death all for the sake of finding someone to blame for the Economic Crisis we have endured for five years now.
If you are a Buyer your best asset is an experienced Real Estate Agent or Broker who knows the market and can help you negotiate the hurdles in a constantly changing market. What is true today may change tomorrow and it has been that was for the past five years. You need an Agent who can council you on values, assist you in making an offer, and help you through the process from Contract to Closing.
If you are a Seller, you need an Agent or Broker who is going to "Tell it like it Is" even if it isn't what you want to hear. The market changes constantly and where in the past few years the market was inundated with Foreclosures or Short Sales, in 2012 the exact opposite it true. It may or may not be the time for you to sell. If the time is right or selling is a necessity, you need a professional who will do they very best for you and help you get the price, terms, & conditions that are acceptable to you.
In a changing market, you need an Agent with the the experience to help you negotiate the obstacles in the marketplace. Those obstacles may seem insurmountable. However, if there is way around or over or through that obstacle, I will help you find that path.
Let's talk. Change is a reality in life, nothing ever stays the same. With the right Agent working for you something that appears negative can turn in to a Dream Come True.
Sandra Paulow, Associate Broker, GRI, SFR, REALTOR®
From Contract to Closing, "Experience" makes the Difference!