In This Issue

Whose Market Is It? Capitalizing on the Marketplace Go Green

We are pleased to present you with the latest issue of Life@Home.  Delivered to home buyers, sellers and owners on a monthly basis, this electronic newsletter is designed to give you the real estate information that is important to you.  In each issue, you will find practical tips and articles related to buying, selling or owning a home, as well as the latest news on real estate trends.  We hope that you enjoy this issue of Life@Home.  If we can be of any assistance, please do not hesitate to contact us.

Whose Market Is It?

Real estate is a cyclical business. For months or even years conditions may favor the buyer. Then, over time, the pendulum will swing the other way and circumstances will favor the seller.

The market forces of supply and demand help determines whether it is a buyer's or seller's market. When the supply of homes is high, the sense or urgency for buyers lessens. Because there are more homes to choose from buyers can be more selective and may wield more power during the negotiations. In turn, sellers may need to lower their asking prices to attract consumer interest.

Conversely, in a seller's market, inventory is lower. Buyers have fewer options and the sense of immediacy is heightened. As a result, the number of bids on any given listing may increase, asking prices might rise, and buying terms may become more stringent.

A second factor that influences the market is mortgage interest rates. High rates mean it costs buyers more money to borrow from a bank or lender. Higher rates can lessen consumer demand. On the other hand, when rates are lower and buyers feel they can get more for their money it can propel them into the real estate market.

If you are considering buying a home it is critical that you determine whether it is a buyer's or seller's market. Equally important is to remember that real estate is local. Different factors could make it a seller's market in one city and a buyer's market in another. To help you determine which conditions prevail examine how long listings are staying on the market, compare that rate to six months ago, and look at whether homes are selling above or below asking price.

Your real estate agent should be an expert in your local marketplace. His or her insight will be key. Remember the market climate buyer or seller will ultimately influence your decision when to buy and at what price and terms.

Capitalizing on the Marketplace

The economy and its affect on the real estate market continue to make headlines. So far, the news has been better for buyers. Inventory is high and as a result sellers have had to make most of the concessions.

With such factors at play, you may begin to wonder if you need a buyer's agent. The fact is, it is these conditions that demand expert advice. Here's why:

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1. With more homes up for sale, there are more properties to evaluate, numbers to crunch and data to examine. A real estate professional can help you wade through and make sense of the marketplace.

2. Changes in economy affect list and sales prices. A professional Comparable Market Analysis of similar homes sold in the past six months will reveal whether an asking price is high, low or reasonable. This can be tough to judge if you are not accustomed to following and analyzing market fluctuations.

3. When it comes to negotiations, an aagent's advice is invaluable. Why not make the most of it when conditions are in your favor? An agent can advise you on how much to offer and counter-offer. He or she can also offer advice on negotiating terms like asking for a home warranty, a favorable moving time-frame or adding contingencies that benefit the buyer.

If you are still unsure whether you want to work with an agent, set up a meeting with your local Century 21 office. Learn first-hand how a professional can streamline the transaction and help you get the most of your money.