Golden Opportunities

The year’s half over. Has anything improved in the real estate market? Or is it actually getting worse? Here with our mid year forecast is Rachel Torchia from Gateway Title Agency.

Question: The year is half over. How’s the real estate market doing?

Answer: The market has changed, and changed for the better. We started seeing these changes at the end of May and through June. The consumer has accepted that the market is different than it used to be, and the changes that go along with that.

Question: What adjustments have people made?

Answer: Many sellers have lowered their price. They’ve finally accepted the fact that they can’t get the same prices that sellers received a few years ago.
Sellers in many cases have a bottom line based on the equity in their home, and buyers are recognizing this. So if the seller has a $100,000 mortgage, it’s unlikely the seller will sell him less than that.
Many sellers have decided to sell by owner. That way they can avoid paying a hefty sales commission.
Buyers are willing to share more of the costs and are no longer looking for sellers to pay for everything. Again, the buyers are accepting that the sellers have lost equity and may not be able to afford such demands. In turn, the sellers are more willing to listen and make concessions. Both sides are talking now, which is a win-win situation.
Attitudes have changed. Sellers have accepted that buyers are first approaching with a “testing” number. They aren’t being insulted by the first offer anymore—they are willing to use it as a starting point.
Sellers are ordering inspections before putting their homes on the market and are making the necessary improvements. They are making their home a good product to sell.

Question; What evidence is there of these changes?

Answer: First, I’ve seen much more activity in the market—more filings, more sales.
Second, purchase agreements are becoming more reasonable. The buyers are negotiating more realistically, rather than trying to get a “steal.” They see and understand that the sellers may not have a lot of equity with which to work. We were not seeing this behavior 6 months ago.
Third, at Gateway, we have seen a huge increase of activity in our workshops. More and more people really want to get educated about the reality of today’s market—an amazing amount of people. People really want to know how to sell in today’s market. In fact, we’ve even had lenders ask us to bring the workshop “on the road” with them; there’s that much of a demand. We’re also having more topic-specific seminars, on topics such as reverse mortgages.
These are all very positive signs! We’ve had people come to our office with their purchase agreements, looking for a neutral ground where they can sit and go through the material. People are being more civil. It’s good news.

Question: What's the real estate forecast for the foreseeable future?

Answer: The market is loosening up. For those who adapt their buying and selling strategies. Based on what we talked about, I see that it’s improving and is on an upswing.
What’s really promising? Lenders are now caring much more about consumers; consumers are getting much more respect than they used to receive. In fact, there seems to be more care and concern from all parties involved.

Question: How can our viewers learn more?

Answer: Give Gateway Title Agency a call for a free newsletter, or to find out more about our educational workshops.

You still can sell a home if you follow the right advice. To learn how you can get education, and to receive a free newsletter, give Gateway Title Agency a call at the number that’s next. My thanks to Rachel Torchia.