Debbie Ferarri Debbie Ferarri
email: Debbie@DebbieFerrari.com
Home Page: http://www.debbieferrari.com
Newsletter

October 1, 2003

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 Question of the Month

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"Is it advisable to close before doing the walk-through and taking possession?"

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Answer

It is advisable to do a walk-thru inspection prior to closing.  A walk-thru inspection is different with new homes than it is for resale homes. 

With new homes, the walk-thru is usually your first time inside the house, so you are looking for all problems.  After you identify problems, the builder's customer service personnel will correct them.

With resale homes, you probably negotiated a home inspection that occurred early in the closing process. 

So the walk-though serves two main purposes.  It gives you the opportunity to check on problems that were identified during the home inspection.  You will want to ensure that anything that was supposed to be corrected has actually been handled.

You also  want to check the general condition of the property to make sure the seller is leaving it in the condition required by the contract.  At the same time, they may not be done with cleaning and packing, so expect to be a bit flexible.

The main point is that the final walk-thru is not a time to be looking for new major problems.  That should have been accomplished earlier in the process and is why you should always perform a home inspection.

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Interest Rate Forecast

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Jobs, jobs, jobs...

...until there is growth in jobs (or an expectation of job growth), rates will stay low.  But since the economy is growing, look for rates to remain stable with occasional trends to the up side.  

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Interest Rates went up in July, stayed up through August, then fell in September.

Why?

Because interest rates are not based on what is happening today.  They are based on expectations of the future.  When investors and lenders thought the economy was picking up, interest rates increased.  When those hopes met reality, interest rates fell a bit.

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National Home Sales Record

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Though local interest rates vary widely from place to place, national home sales set another record.  Most recent figures are for August sales, which showed an annual pace to sell 6.47 million homes, beating July's record by 5.5%. 

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Regionally, the West led the pace at a 7.98% sales increase, followed by:  South 6.50%, Midwest 2.99%, with the northeast showing an increase of only 1.43%.

September Sales figures will be released in late October.  You can read about it here.

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 Appreciation Rates Climb

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Nationwide, the most recent sales figures released show that the average sales price of existing homes increased 9.35% over the last year, with all regions showing dramatic gains.    

Annual sales price increases by region: Northeast 10.7%, South 9.41%, Midwest 9.05%, and West 8.7%.

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 Quick Quote

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This was from a real estate agent in Florence, South Carolina, evidently dissatisfied with a lack of service from his client's online lender:

"It seems that there is always an advantage to having your loan officer within choking distance." (humor).

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 Hints & Insights - Should You List Your Home at a High Price?

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The initial listing price isn't that important because the price can always be adjusted down later.

Many homeowners believe this.

It is a myth.

Not true.

If most buyers first viewed your house because of a newspaper ad, a magazine, the internet, brochures, or the sign in your front yard, the initial listing price probably would not make a difference.  The house would always be "new" to those seeing it.

But most buyers see your house for the first time because a real estate agent showed it to them.  An agent working with buyers.  So the most important people to impress with your house are the other agents who belong to the local Multiple Listing Service.

When you first put your home on the market, agents pay attention.  It is like going to fancy steak house and your server brings the steak to your table while it is still hot and "sizzling." 

New listings receive priority.  They are on the "hot" sheet circulated in real estate offices.  The MLS computer identifies new listings.  Your listing agent may hire a service to distribute fliers to all the buyer's agents.  There are office previews and MLS tours.

Sure, you can market later, too - but agents pay attention when your house is new to the market.

You can only be "new" once.

If the house is priced correctly for its condition and location, agents will show it to their clients.

If it is overpriced, they won't.

Dropping your price later deprives you of the best opportunity to market your house when it still has "sizzle."

Later marketing is less effective.

.© copyright October 2003 RealEstate ABC

 

 
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