Pinetop White Mountain Blog

Good Morning Everyone!

For the last week I have been reading a lot in news articles and on other blog sites about how hard it is to convince Sellers that their "WANTS" or "NEEDS" are not necessarily conducive to the current market conditions.  As much as we would all like to return to the boom days of a few years ago the reality is somewhat different. 

In many areas of the Country home prices have dropped to at or in some cases below pre-boom day levels.  This is very hard for sellers to accept or understand, especially if they bought the home in the past few years.  In many cases they may have purchased the home at top dollar when home prices were at their highest levels and now they are finding themselves in an upside down situation with no easy solutions.  I feel for these folks, I truly do, but "WANTS" and "NEEDS" don't necessarily translate to your agents ability to overcome the reality of the current market conditions. 

The Lending industry is tightening up so much that the only type of loan available to most Buyers are Government backed loans such as FHA. Loan underwriters are watching things very carefully.  They are scrutinizing appraisals and in many cases going back to the appraisers for more comps or other active listings in the area just to verify that the home is priced as it should be.  In some areas lenders won't even lend at the appraisal amount, they will only fund the loan at 10% below the appraised value because the home is located in an area defined as a "declining" market.  Scary, you bet it is, but it is a fact in today's marketplace.     

On the positive side of this is the fact that there are Buyers looking for homes.  They are more careful these days and if they have a good Buyer's Agent working for them, they will find the right house at the right price.  If a home is priced where it should be and it is in good shape, that home could be the one for the Buyer. 

If you are trying to sell your home, you might want to consider a pre-listing Inspection and/or Appraisal just so you know where you stand in your market.  These things will help you know what to expect when that Buyer does come through the door.  If there are some deferred maintenance issues you know about, fix them now.  It will save difficulty later when the Buyer has their own Inspections done and they come up with a list of repairs a mile long.  Most Contracts for Purchase mandate that certain items be in working order at Closing, ask your Agent about those items so you know what they are and can fix them ahead of time.  It will save you headaches later when time is short and you can't find the right person to do those repairs in a timely manner.  

The point of all this is to make Sellers aware that times have changed once again in the Real Estate Industry.  The Boom Days are over and it is time to come back to earth and accept that the market has changed.  If you need or want to sell your property, you need to be realistic about it.  "WANTS" and "NEEDS" do not translate in to "REALITY" in the current market. 

A good Agent will tell you about your market and what you can expect.  Listen to what they have to say, even if it isn't what you want to hear.  The time might simply not be right for you to sell your property.  If the need to do so outweighs the current market conditons, you may have to make some very difficult decisions about what to do.  A good Agent can help you with those decisions and perhaps provide alternatives for you. 

If you have questions about the White Mountains Market, feel free to give us a call.  We will be happy to meet with you and talk things over.  Together maybe we can draw that "WANTS" list a little closer to "REALITY".

SANDRA & BRUCE PAULOW, REALTORS®

RE/MAX Pine Country Realty in Show Low, Arizona.

(866) 537-9001 or (928) 242-0300