How To Survive on a Sluggish Real Estate Market

If you’ve been reading the recent news of the swooning markets, it’s likely your head is swimming with new terminology: Subprime mess. Credit crunch. Discount rate.

For help, I turned to real estate expert Barbara Corcoran.

IF YOU’RE BUYING:

Shop for a mortgage, then the house. Don’t settle for being pre-qualified - get pre-approval for a certain amount of money. Knowing exactly how much you can spend will give you leverage in negotiations with the seller.

However, these days, it’s not uncommon for mortgage commitments to last only a week, as opposed to the old standard of up to three months. Stay in touch with your lender to keep yours updated.

Gauge home prices in your area by going to open houses of homes similar to the one you’re eyeing. Then, get three competitive brokers to give you an estimate of what the home is worth. These steps will help you make a smart offer.

A nice place to start is 15% below the asking price, if it’s properly priced or 15% below what you believe the value is, if it’s not.

IF YOU’RE SELLING:

Price it like you mean it. Almost two-thirds of homes for sale are overpriced because sellers’ emotions get in the way.

Sure, the house holds important memories for you, but they’re no selling point. When you’re selling, it’s no longer a home, it’s a house.

Even if you’re willing to negotiate, if you price too high, you run the risk of closing the door on potential sales. Get expert opinions on your home’s value. You can also check Zillow.com for a rough estimate.

This post was found on FSBO.FizBer.com
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