The Market's Ups and Downs


I don't think it can get much hotter before we all melt. Yesterday my A/C went on the blink so I had a nice sweltering evening under the ceiling fan chugging along at high speed. Thankfully my HVAC guy was out this morning by 10 a.m. and repaired it with just a replaced capacitor (whatever that is) and is finally back to normal.

Which brings up a very important point for home sellers. When you decide to sell it's wise to spend a little money before you put your house on the market to make sure all of your critical systems are in perfect working order. There is nothing more frightening for a buyer than to have their inspector find that the HVAC is not cooling properly during the option period after the contract to purchase is signed, as one of my clients found out recently. The inspector discovered that not only was the A/C condenser too small for his expanded square footage, but that the electrical box was of an outdated and recalled system from the '60s. Most buyers aren't interested in taking on those kind of additional expenses or risks. A lot of folks will take hints from their favorite HGTV home improvement show to spruce up the cosmetics but ignore the primary systems of the home that are the biggest drawback to getting a home sold, especially in today's marketplace. Be prepared with a pre-sale professional home inspection. They're well worth the few hundred dollars to show you what can be a deal killing surprise for a home buyer. And don't forget to keep your foundation watered this time of year. About a foot all around the footprint of the house once a week for 30 minutes will help prevent damaging and expensive foundation shifts.

In terms of the market, it's been a wild couple of years as we have seen ups and downs in the last 2 years unlike no other. While the spring of 2009 brought some relief with the $8,000 buyer credit from Uncle Sam, then the expected dip afterwards and a slight resurgence in late 2010, this year is certainly bringing the hammer down once again. As I research my 5 principle market areas, I see many neighborhoods that normally have about a 5-6% annual turnover rate drop to 1-2%. Excruciating for sure, so even more important to properly maintain your home year-round. Since even in normal market conditions,40-50% of homes that go on the market do not sell due to more competitively presented homes; now that number is rising considerably. I've always been able to boast at least a 90% sales rate on homes I market simply because I can be selective in the homes I choose to work with, and of course in this market, that means having to avoid a lot of homes that aren't in the best shape. So keep an eye on the details.

And as always, please contact me for all your real estate needs and visit my site for featured homes, all current MLS listings and more!.

Best Regards,
Greg Foster