Why, as a prospective home seller or buyer, you need to stop sitting on your hands.
After five years of a tumultuous market, order and opportunity are finally being restored to the housing market. Home prices were expected to rise 1% during the final quarter of 2012 to the end of 2013, according to the real estate research firm Fiserv.
Fiserv’s chief economist David Stiff says that “Housing is finally turning the corner. There is no reason to be fearful of further large price declines.”
This is going to create a new playing field for homeowners, who are finally able to sell, and potential buyers, who've been delaying a purchase with hopes of prices continuing to fall.
Fiserv also predicts that in the next five years, homes will gain 3.3% a year in value. That’s hardly red-hot, but at least the market isn't frozen anymore.
The Action Plan
Sellers- The Price Still has to be Right, Focus on the Appraisal
Homes in many markets are selling in a matter of weeks, often attracting multiple bids, but only ones that are properly priced.
Whoever bids on your home will probably finance the purchase, meaning any deal is still beholden to a third party. Keep this in mind because even if you take the highest offer, in the end, the appraiser still has the final say on the home’s value.
Buyers- Be Ready to Deal
With competition heating up and inventory down, casual house shopping doesn't cut it anymore. If you are serious about making a move, be prepared. Start looking into mortgages three months out.
If you’re interested in a new listing your first offer should be very close to your best. A low-ball bid will be ignored. If the house is on the market for three months or longer, you can be more aggressive, says Chicago Realtor Fran Bailey.
See full article at http://money.cnn.com/2012/12/01/real_estate/housing-outlook-2013.moneymag/index.html?section=money_realestate&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+rss%2Fmoney_realestate+%28Real+Estate%29&utm_content=Google+Reader
Source: CNNMoney.com, December 3, 2012