CREST Team Blog

This month we have re-arranged our Web Site to focus on the seller. What follows are some of the reasons why we are dong that.

A couple of weeks ago as I was looking for material to write about I read that home prices continued to fall. I read that Banks were hoarding cash due to their recent losses. The analysis was that Banks are trying to recover from recent losses due to short sales and defaults. At that time the Fed had made their seventh rate cut since September. As of last week I guess it is now eight rate cuts. Standard & Poor’s of New York at that time was predicting U.S. home prices may decline as much as 20 percent by the end of 2008 from their peak of 2006. Data Quick reported Orange County home sales were down 39.9% from a year ago. The National Association of Realtors reported the first increase in sales of existing homes in seven months. OK, that’s a bit of positive news.

Since some unplanned events interrupted the writing of that article I sat down today to update my information and post a new article. The information I found continued along the same lines. Data Quick reported that last Quarter Foreclosures were at their highest level in the last 15 years, March 2008 recorded the lowest number of sales in Data Quick History, and sales are down 46.9% over a year ago. Prices are down 19.6% over March of 2007.

OK, there has to be some more good news in here somewhere.  Nope, the Fed lowered their rates to Banks but CAR reported that Mortgage Rates on a 30 year fixed increased to just over 6%. The Orange County Register today reported that vacancy rates for rental properties are up. One Bedroom rentals have the highest vacancy rate. CNNMoney.com is reporting that mortgage applications fell by 11.1% for week ending 4/25 and quoted the Mortgage Brokers Association as their source. The same article reports Refi apps are down 16.7% and Purchase apps are down 4.8%.

Finally I found some small but encouraging news bites. The Daily Rate lock on our Web site, as of Friday May 2nd, quoted a Labor Department report of stronger than expected employment rates. The Dow is up 66 points, Nasdaq is up 2 points, and factory orders are up slightly. Who can say what the news will be on Monday?

So what can we take away from all this information?

My “take away” is that if you are planning to sell, be well informed, be prepared, and get good help. Unfortunately, you can no longer depend on putting a sign in the front yard and waiting for multiple offers to arrive.  Start with complete and thorough information on your property. A well researched CMA (Comparative Market Analysis) by an experienced Realtor is a good idea but an actual appraisal by a professional appraiser would be better. Remember, your house is only worth what a qualified and willing buyer will pay.

Get a good Realtor that will aggressively market, advertise, and show your home. Read the tips and use the checklists on our Web Site. Spruce up your home and make it look as good as possible. If you are facing a short sale or foreclosure our sympathies are with you, but don’t do it alone. Work with your lender, work with a Realtor, but don’t work alone. Of course we would be happy to be your representative, but whoever you choose must do a thorough job of marketing, advertising, and presenting your property.

Granted, these are not ideal conditions for selling a property. With good preparation and the right help you can complete the sale.