Batting .750 and beating the odds

Oh what a difference just a few short weeks makes in the real estate market. Suddenly, the slow stagnation seems to be over, and buyers have returned in full force once again, lured by the 2001 era pricing, the most attractive interest rates in decades, and a host of federal tax credits designed to make a home purchase more attractive than ever.

Over the last few weeks, the results have been nothing short of spectacular. In Shrewsbury, for example, of my last four listings, three of them had multiple over full price offers the first day - helping to reassert that, as I've said many times, the market will find its own way to values. In these cases, the Sellers really stepped up and did the right thing, spending a week or more getting their homes polished to precision by my team of painters, cleaners, and other contractors, long before ever even hitting the market. Then, we took advantage of some creative marketing strategies and, of course, proper pricing from day one, to ensure a massive turnout on the day we began showings, and the ability to select from multiple Buyers the one that is most qualilender fied to move forward.

For Buyers in such a situation, the question they often ask is how to compete in a multiple offer situation, and ensure success. Naturally, you'll want to get all your financing lined up well in advance of the offer. You should be working with a reputable and obtaining a full commitment letter - as opposed to a "pre-approval." The stronger the financing package, the better chance you have of getting your offer accepted. Next, be fully cognizant at all times of the difference between price and value, and do an objective analysis of both before submitting an offer. Recently, for example, I had a listing that for some very, very specific reasons was priced below market value as a strategy for stimulating multiple offers. As planned, it attracted a flood of Buyers, many of whom recognized the true value and were offering up to $40K more than asking price. Yet even in such a situation, with the "value" clearly obvious to almost everyone, we still had a couple of Buyers making offers for $50K less than asking … just because that's what they do. Many of these folks have offered on properties in our area over and over again throughout the last year, never once making a bid that was accepted - and yet they continue along the same routine, for reasons unclear both to me, and their agents.

For the Sellers out here, now is a very critical time to have input from the most experienced real estate professionals possible. Things are changing so quickly, that it's no longer enough to merely do a "market analysis" to establish the proper listing price. This is often the case in such markets, as I've learned over the 20+ years I've been selling homes here. Now, we must take the market analysis one step further, and consider active inventory, the putative Buyer pool, upcoming supply, and where possible the current pending prices of recent properties which have not yet closed. This data may very well lead us to an entirely different conclusion than the recent comparable sales - many of which sold when the market was at it absolute worst a few months ago - with no apparent hope in sight.

Suddenly even the upper end properties seem to be moving again, likely a domino effect of the mid-range movement coming back, and those upgrading Buyers able to move forward.

Lastly, we're also starting to see a plethora of New Construction coming back into the marketplace - with the announcement of several new subdivisions … including "Nature's Crossing" in Shrewsbury, a luxurious waterfront community priced from the upper $300's, and several estate properties from the mid 500's. E-mail me for details on the many new opportunities out there.

Anyway … after months of gloom, I'm so thrilled to be able to write such an article and bring some sunshine into the lives of my home Sellers at last. Now that the process has begun, it's a time when we must all work together to ensure top market value, a strategic marketing plan, and an easy move for you and yours. Years from now, many will reflect back on those who made the move during 2009, and so I'm sure that together we'll create many stories with which we can regale our friends down the road.

Give me a buzz anytime … and let's chat about how we can work together for a profitable 2009!

Steve Levine is President " of Steve Levine Inc. and an Agent for REMAX First Choice. He's been ranked as one of the Top REMAX Agents in New England since 1999, and can be reached by phone at 508 735- 4663, or by e-mail at steve@ stevelevine.com.