Real Estate Resurgence – How Buying and Selling Has Changed

The housing market is in turmoil, and lots of sellers are simply unable to get their properties off their hands. On the other side, buyers are less able to NEW RULES FOR BUYERS AND SELLERS IN REAL ESTATE obtain loans and credit for real estate because of a fearful marketplace. In order to make a successful transaction these days, here are the rules that are now in play: FOR New Rules New Rules SALE for Sellers: for Buyers: Quality Buyers Matter The days of letting buyers battle with each other over who can buy from you (resulting in a better price for the seller) are over. With fewer buyers and more desperate sellers, quality buyers who can really pay are the most sought-after. Credit Scores Matter 1 1 Gone are the days when you can get home loans with bad credit. Before, lenders were loaning money against appreciating assets (property), but now that's not the case, so your credit matters big time. Pricing Matters Unlike a few years ago, if you want to have any chance of selling at all, you need to price agressively. Buyers are sacrificing quality for price, and it may cost you more to wait forever for someone to take your price than to price 25 Down Payments Matter Your chances of getting approved for a loan increase dramatically with your ability to front a little money and prove that you're good for it. 20% or more is ideal. lower and sel ight now. Expectations Matter Prices aren't going to return to 2006 next week, and waiting for that to happen will be costly. Instead of expecting to sell for how much you think your property is worth, you need to price for the actual market value today, or you won't sell, period. Income Matters When it comes down to it, your monthly income is the biggest factor toward getting a loan. No more "stated income" loans. Bottom line: you can't afford what you can't afford! ve