WHO WINS?
Solid advice from the LDM Team-the residential experts!
I am seeing some interesting things happening in the market...
When sellers are holding onto the glitz of yesterday's prices and buyers are in a "wait and see" mode and more and more property comes on the market, we are in for the tipping point towards a declining market. It is normal for people to take a bit of time to digest what is going on before they become proactive. We will see the market transitioning and no matter what, the SMART ones are going to do well!
Be AHEAD of the rest!
Right now the amount of property on the is market double compared to last year, and the amount of sales are much lower than the amount of property coming onto the market...
WHAT DOES THAT MEAN?
If you are SERIOUS and need to sell now, the only way to SELL is to price where buyers PERCEIVE it's a value! The SMART buyers will see that it's not only a good value BUT that the interest rates are still LOW.
Smart sellers know that most other sellers will hold their prices-while they price competitively-and will be ahead of the game... They also know they are going to be buyers...usually they'll see MORE savings on the new home they buy. If we assume they sell for 10% less and buy a bigger, more expensive place thats 10% less-this could be a GREAT OPPORTUNITY!
Buyers will BUY if they PERCEIVE value- like a shoe SALE.
When buyers don't see value...the feedback we get on a property is..."needs a doorman", "not big enough", "not renovated". I found this meant the property was overpriced- because it's amazing how flexible buyers are when they see it's MORE VALUABLE than all the other properties they've just seen!
Although buyers say they want a deal, they really want to bid and buy in a market they have faith in....that will continue to be strong....and they have power when it's their time to sell!
Did you know if the interest rates increase 1% the monthly payment is 9% higher? SMART BUYERS DO! So if they see 10% savings on top of low interest rates thay can see VALUE. We all know the MONTHLY PAYMENT is what's most important for people when assessing what they can and cannot pay for a home-those buyers can see the opportunity, an have room left for more GOODIES!
Usually when sitting with sellers, we explore their needs and motivators- if they don't HAVE to sell it's probably better they stay put or lease out their property. Not only does this become a great opportunity for someone else to pay your mortgage( see Laura for details)..but you can choose to sell when you feel the market is best.
In past emails we mentioned buying a coop can be risky in a declining market-why? Because on three recent instances, those individuals are forced to sell- or do anything but sublet their property- which is such a SHAME because property has and will always be a GREAT LONG TERM INVESTMENT - remember, through the course of time property has steadily increased AND is one of the few tax shelters us normal humans have left!
Below is an intersting report- if you are SELLING, you can see what buyers feel is most important so you will be as competitive as possible and if you're buying....it's good to know what to buy for a better resale value AND to know how much competition you're up against!
So if you want to be on the SOLD list instead of the NOT SOLD list...call us.
If you want to hear how LEASING can save you thousands instead of SELLING now, call us.
If you want to BUY and you want a great professional-that can sniff out all the VALUE packed properties...call us!
...917 658 4755 for more market info too!
All the best,
The LDM Team
Laura Denise Milkowski,
Christina Prostano, Michael Beam
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