Gina Schaal's Homeplace

We will survive this mess...... Here's a few suggestions!

As I write this letter I hope that everyone is doing well, despite the fact that our national economy seems to be falling apart at the seams.  With a little hope, perseverance and changing of the guards in Washington DC, we will see the future in a much better light soon.  I know that it has been hard listening to the Doom and Gloom portrayed by everyone from Wall Street to our own backyards, but from my perspective things are looking better going forward.

Adversity is an opportunity to see the real issues upon us and to make some better choices.  The reality of our past decisions good or bad will have to be dealt with now.  Mortgage companies and consumers have to face the consequences of their actions and eliminate using credit that was wasteful and irresponsible.  If you are like most Americans that are doing all the right things to stay within your budget and pay your bills on time you are going to be fine.  You may have to tighten the belt a little more but take a deep breath and remember that what has passed is past.  Keep moving forward because to look back and complain only wastes time and energy.    

You know it’s true even if it isn’t convenient.  The same can be said for your home values.  I won’t tell you that you’re going to see double digit gains in housing values that you saw in the last 5-10 years but what goes up must come down.  Did you know that the average increase in home values over a 30 year period is about 6%?  That figure does take into account that there are years that we see little to no gain and then some years are much more profitable.  What we saw in the more recent past is almost unprecedented in gains but because of those enormous gains we were bound to see it reverse itself eventually.  So here we are, in the correction stage.  OK, so now what? 

Don’t Panic!  If you take smart steps to control your spending, particularly by using your credit only when absolutely necessary and not at all for the immediate future, you will be in much better shape when things get back to normal.  Continue to pay your bills, contribute to your retirement account where you can, and take care of your property like always.  Don’t invest in home improvements that aren’t necessary but Do maintain it.  Regular maintenance is the most important step in realizing the full value in your home and that will increase again when our markets are free from the extra Foreclosures that we have now.  It is expected to take an additional 21+ months to sell off the home inventory of today.  I know that it sounds like a long time but in reality it’s just a few months down the road.

In the meantime if you know that you need to sell during this time frame then for heaven’s sake be prepared for the market in realistic terms.  First, talk your mortgage expert about the viability of financing your next home.  If you have equity in your home, pay your bills on time, have good credit scores and a verifiable income, the mortgage bankers are looking for you.  The mortgage process isn’t as easy as it would have been a couple of years ago but it’s possible to get a great interest rate and maybe better than what you currently have.

Don’t even think about selling without having your home in tip top shape.  Don’t expect a buyer to overlook the imperfections because they won’t and don’t need to with all of the homes to look at now.  If your home isn’t perfect then you open the door for a lower than expected sales price.  Take the time to pack up unnecessary items in your home or even better sell, store, donate or dispose of them completely.  Depersonalize all rooms.  This includes family photos and anything else that tells a buyer that the home belongs to someone else.  The main objective is to turn your home into a house and a product, devoid of your personality.  Allow the buyer to visualize the house as theirs and not be distracted by you and your stuff.  Do CLEAN, CLEAN, CLEAN, as in Q Tip clean.  No corners or crevices untouched. 

Last but not least, do use a Professional Realtor® and an ASP, Accredited Staging Professional who can give you a thorough Market Analysis of your current property and has the knowledge and expertise to help you prepare for the buyers eyes.  When a house is properly prepared for market, its chances of selling in the first 30 days on the market is, greatly increased.  Do know that what you perceive as a loss in value on the sell side of your transaction maybe easily made up on the buy side of the deal.

There are some great bargains out there right now and you along with your Local Realtor® can turn the doom and gloom into something that is really a win, win for you in the housing market, despite what you hear.

Also, if you know of a First-Time homebuyer who is looking to buy, please encourage them to do it now.  The FHA lending rules are now more than ever focused on first-timers, but the minimum down payment is scheduled to go up from 3% to 3.5% in January of 2009.  The Federal tax credit of $7500.00 for first-time homebuyers offers some unique opportunities for those who could use an interest free loan, to pay off student loans, and other debts.  F.Y.I. This tax credit is retroactive to those who closed on their first home in April of this year and will continue till July of 2009. Please check with your local mortgage professional and accountant on how these programs will benefit you.  Give me a call if you have any questions or need to be referred to an expert who can help.

As always……………..The heart of my business depends on people like you confidently referring loved ones, friends and others you know who need a Realtor® that will give them the respect, time and consideration that they deserve.

I appreciate your time!

Published Thursday, October 09, 2008 12:35 PM by Gina Schaal