Buyers: Why wait for the Sellers' market to return?
By Elizabeth Hanson/The Callan Team Partner Keller Williams Westborough

By Elizabeth Hanson Partner/Agent The Callan Team

Do you really think there is going to be a better time to buy?

Consider this: today's mortgage rates are still at historic lows. Gas prices are at an all-time high. The stock market is so volatile a roller coaster ride on a full stomach would be preferable. Yet the press equates the 2 percent loss in housing prices to the Crash of 1929! You've probably lost more money if you drive a gas guzzling SUV or you've "tinkered" in the stock market. The year 2007 will still be remembered as the fifth best housing year since the keeping of real estate records.

The buyers who were the most likely to be hurt by the stagnant housing market probably bought beyond their means. (Thanks in some cases to sub-prime mortgages.) Speculators drove prices up by upgrading "fixer uppers" beyond a reasonable return on investment, making the resale value too high. Overbuilding added up to losses in many markets, such as Florida and Nevada. Rapid gains in any market are unsustainable and most often "overcorrects" before stabilizing.

Home ownership is still THE smart choice. Quick flips may work for stocks, but not houses. Owning your own home builds wealth over the long term; in addition, owners are rewarded with tax savings. According to Blanche Evans, author of Bubbles, Booms, and Busts, "over 10 years, a $10,000 investment in the stock market at a normal 10 percent market rate of return would yield nearly $24,000. The same investment as a down payment would return nearly five times the stock market return, or over $110,000."

So if you still think there is going to be a better time to buy, think again! Take a look at the chart on the following page and draw your own conclusions: Some advice to sellers trying to sell in a stalled market

Always, always, always use a local broker who knows your marketplace and its statistics. Be prepared to offer seller concessions (such as off ering to pay for closing costs). And if your broker off ers to "cut" the commission, remember that this is the same broker who will be negotiating for you once you get an off er.

Sell more than your home! Throw in the washer and dryer, the swing set, the drapes, the outdoor Jacuzzi.

Make sure your broker keeps the MLS and Internet real estate sites up to date and with photos of the current season.

Visit open houses in your marketplace; this is your competition and although it's difficult to view your home objectively, try to see what a buyer sees when looking at properties in the same price range.

Lastly, but most importantly, don't kill the messenger! When your broker comes to you for a price reduction, or with a lowball off er, remember! This market is not your broker's fault! We know it hurts! Ouch!

To get the latest facts and figures of your marketplace, call Elizabeth Hanson/The Callan Team at Keller Williams . . . the only realty firm whose brokers are partners in the business.

Elizabeth can be reached at elizhanson88@hotmail.com or WWW.personalhomesearch. net.