When Should You Reduce The Price Of A Home Listed For Sale?
When the real estate market is trending up due to being a seller’s market price reductions may not be needed. In a neutral or buyer’s market price reductions will be what helps a home get sold when there is little to no activity. There are always homes being bought and sold. When a home is not selling there are a number of reasons why and price is usually at the top of that list. This article looks at some of the common signals which home sellers should use as feedback to reduce the price on their home.
No Buyers/Been on the Market Too Long
A lack of any buyer coming through to tour the home could point to a pricing issue. Active buyers will be shopping for home in their price range. As mortgage interest rates have trended up over the last few months that means buyers have to look at lower cost homes in order to get the payment that works for them. If a homeowner really needs to sell their home they need to make sure their price is realistic and priced according to what other similar homes sold for recently in the past.
The problem with recent home sales in a downward trending market is that the most recent sales may have been at a time when mortgage rates were lower or there was still strong buyer interest. Sometimes the seller’s market can flip very quickly to a buyer’s...
Three Quick Tips For Getting Ready To Buy A Home
While starting the process of buying a home may seem easy when all one needs to do is click to a local Cincinnati real estate website and start browsing homes, the process is a bit more involved than that. There will be a variety of homes in many different price points. Prior to even getting serious about a home the home buyer needs to follow the below steps to make sure the process starts off successfully.
Step 1. Understand Your Budget
Everyone should have a good grasp of their budget including their debts and monthly expenses. A house payment can take up a large portion of a homeowner’s budget. Buying a home that puts the mortgage expense at the top end of the budget can lead to problems down the line when other expenses increase. Especially in an inflationary environment like we have today in 2022 the cost of daily items like groceries, utility bills, gas and more keep going up. So once where a budget was perfect with the exact amount of money coming in as going out is now a disaster since things cost more.
Even with a fixed interest rate mortgage the payments for a house can go up. Especially if the homeowner is escrowing their tax and insurance payments as taxes and insurance rates go up on the home so will the monthly payment. Even for those who are not escrowing tax and insurance payments if those go up they have to get paid regardless if the budget can cover it or not.
Home buyers need to understand their overall financial picture...
Timing The Real Estate Market
Timing the real estate market like timing the stock market is easy to talk about but hard to do in practice. Even those “experts” in the field while offering predictions rarely will offer guarantees as to performance. For the average real estate buyer or seller, trying to time the market may cause more pain than any gain. Instead buyers and sellers of residential or investment real estate need to look at their current needs and the financials in order to determine if it is the right time to buy or sell as this article explores.
Why Trying to Time the Real Estate Market May Be a Mistake
Trying to time any market for maximum profit can be a mistake as usually it is difficult to do. It may be easier to sell during a long term down trend or long term up trend and make some money. Trying to sell at the high or low for maximum gain can be appropriate where the real estate is for investment purposes. It may be that the price has reached a point where it makes sense to sell and invest somewhere else.
The homeowner hoping to sell while prices are high and then buy when prices reduce may find themselves losing money overall due to high transaction costs and getting the timing wrong. If the homeowner has a reason to sell/buy, like downsizing, upsizing, change of job, etc. then it makes sense to sell and consider everything together. A home should be viewed as something one lives in and not as an investment meant to make money. When it comes to paying interest on a 30-year mortgage, paying for maintenance and upkeep on...
July 2022 Greater Cincinnati Luxury Real Estate Market Report
Median price ticked down a small amount and the average days on market increased by six days. Total quantity of luxury homes that sold did drop by 22%. Whether this trend holds remains to be seen. Mortgage interest rates have settles in the mid-5 range for convention mortgages. For jumbo mortgages rates are also in the mid-5 range for a 30 year fixed mortgage.