What's Your Priority?

Do you remember the sayings, "Don't put the cart before the horse," or "Which came first – the chicken or the egg?" They have to do with priorities, don't they, like deciding which task to accomplish first?

Those same sayings can apply to buying and selling homes. If you presently own a home, and plan to buy another, which do you do first – sell your existing home or buy the new home?

If you sell before you buy, you might worry that you could be left "out in the cold" with no place to live. But if you buy before you sell, you may end up owning two homes at once. It has all the makings of a dilemma, doesn't it?

Try this solution. First, measure you personal commitment to purchasing another home. If you are firmly determined to change your residence, then ask yourself this question: Am I financially able to purchase a second home while still owning the first one? If your answer is "No!", consider selling your present home first.

Selling your existing home first will reveal the solution to the dilemma. First, you will have no double financial pressure. Second, once your home is sold, you will know exactly how much money you have to spend on another home, and when you will need to move. In the current market there is generally a good supply of homes available in any city or town, so you can choose your new home with ease.

To get started, call your professional Realtor® for a free market analysis of your home's value. You'll soon be on your way to that new home of your dreams.

Great Party - No Friends!

Imagine giving a great party for your closest friends. To save the expense of printing you buy some generic invitations. To save time you write "occupant" on the envelope and ask the post office to see that they get delivered.

When the time for your party arrives, you are in for a surprise. As guests begin arriving, you don't recognize any of them. You had planned a black-tie affair, but they're dressed for a back-yard barbecue. Before long, you realize they are perfect strangers, not at all the guests you had planned to entertain.

Sounds ridiculous, doesn't it? Yet, when homeowners decide to sell "by owner," they create a similar scenario. The generic sign appears in the yard as an invitation to complete strangers to knock on the door at all hours for information. The other invitation, an ad, goes in to the local newspaper.

The "guests" arrive right on time, too. They are an interesting collection of bargain hunters, investors, and "tire-kickers." Each plans to feast off the homeowner's equity – by making a low offer to purchase the home or, in the case of the tire-kicker, to just enjoy the free hospitality.

When it's time to sell your home, choose an agent who understands the invitation process. "Black-tie" buyers work with agents who can introduce them to homes that are the "talk of the town."

Knowing Exactly When the Market Will Change

How would you like to know when the real estate market has hit the bottom and prices can be expected to appreciate again? Wouldn't that knowledge be worth a great deal? Well, believe it or not, I can tell you when that will happen. And if you want, I will share my knowledge with you.

You see, it's actually not all that difficult to forecast. The reason for our current depreciating real estate market is simply that more homes are coming ON the market than are going OFF the market. About 19 months ago in the area I sell real estate (the Massachusetts North Shore), for the first time in more than 10 years, more homes came on the market than sold. And this trend then continued for the next three months. That was the beginning of the decline in home values on the North Shore and we quickly went from a Seller's Market to a Buyer's Market. The trend continues today with 404 new (single family) listings coming to market in January on the North Shore (22 towns) and only 209 properties going Under Contract.

So . . . Still want to know when prices will begin appreciating again? Quite simply, when we have three consecutive months when more homes are selling than are coming on the market the trend will have reversed and you can expect the return of an appreciating (Seller's) market.

I carefully track the inventory data every month so that I will know and be ready for the shift. If you would like to be ready as well, feel free to contact me. I am pleased to share the data and with it the knowledge of when the market will change.

Regards,

Jay Burnham

How Do You Conduct a Harmonious Sale?

When you sell your home, how many individuals will have an impact on the final sale, the closing date, and the amount of money you receive from the sale? Five? Ten?

You may be surprised to know there are over twenty of them:

• Your real estate agent
• The buyer
• The buyer's spouse
• The buyer's attorney
• The lender
• The lender's attorney
• The loan originator
• The loan processor
• The loan underwriter
• The credit bureau
• Home inspectors
• Termite inspectors
• Your attorney
• The Registrar of Deeds
• The local property tax authorities
• The federal government
• Title insurers
• Property insurers
• Escrow agents
• The buyer's employer
• The buyer's creditors
• Bankers
• And numerous others!

Just imagine how difficult it must be to coordinate the activities of each of these individuals so that the final result is the satisfactory sale of your home, at the right price for you. Is there any one person who can oversee the entire process for you and make it happen?

There is one person, the first on the list – your professional real estate agent. Choosing your agent carefully can be compared to selecting a conductor for symphony orchestra. That single individual can blend together many musicians playing different instruments, each of which plays a different tune, and produce a harmonious and gratifying concerto – a pleasant and profitable home sale for you!