Did I hear correctly? The real estate market in Montgomery County, PA is actually picking up?!?! Thanks to the FHA mortgage this is true!
That’s right, I said it is picking up! I work with scores of Realtors and have many buyers who are actively seeking to buy a home. The past month has shown a significant increase in activity by buyers. Most of the listing agents that I speak with on a regular basis are telling me that the number of showing appointments on their listings is skyrocketing. Additionally, they are getting multiple offers on many of their properties.
The buyers that I am working with are seeing an increasing number of multiple offers on properties that they are interested in. Although they may not appreciate the competition for the properties that they like, it is becoming apparent that we are starting to see a bit of a turnaround in our market.
What is making the difference all of a sudden? The availability of the FHA Mortgage for First Time Home Buyers and the First Time Home Buyer Tax Credit!! It’s important to realize that FHA mortgages have become a significant portion of the borrowing market again and that has helped many buyers acquire their mortgage when they thought they might not qualify. Remember that the Tax Credit, however, has a limited time window. Buyers are realizing that if it takes a month or two to find the ‘right’ home and then another 30+ days to close, they are getting awfully close to the deadline for using the Tax Credit!!
What should you do if you are thinking about selling your home? Well, the properties that are getting multiple offers are typically priced correctly for the market. Many sellers have taken the approach of listing their property for higher than their anticipated sale price expecting low offers. Unfortunately this strategy may price you out of the market for buyers in the next, lower price tier. You should have your agent give you a list of comparable sales in your neighborhood and price the property appropriately. Additionally, the properties that are staged or prepared to sell are getting the multiple offers. A coat of paint, a clean-up of the landscaping, etc. can go a long way to helping get your home sold quickly. If you’ve been waiting to sell your home, now may be one of the best times. There is no doubt that the first time home buyer tax credit is contributing to the increased activity. There may be a small window of opportunity for you to get your home sold as the tax credit expires November, 30 2009 so make sure that you factor that into your thought process when listing your home.
What should you do if you are thinking about buying a home? If you find a home that you are interested in you should be aware that there are more buyers in the market now and you may want to decide on putting in an offer sooner rather than waiting for a big price reduction. Also, don’t let yourself become disappointed if someone outbids you for a home. I am a huge believer in the theory of things that are meant to be – you will find another property. If a new home comes on the market and you like it you should expect that there will be other buyers out there who feel the same way. You may want to take action and put in an offer sooner rather than later. Remember that there has been so much inventory on the market for the past year that the newer listings are sure to garner the most interest. Lastly, make sure that you are working with professionals to assist you in your home buying and financing endeavors. You need to understand all of the components of the process so that you can make the most sound decisions about your offer.
If you would like any more information about the changing market or how to utilize your mortgage approval to give you a leg up on the competition please call me right away. We’ve had great success getting our clients’ offers accepted!
Jason Klaskin
215-513-1332
jklaskin (at) in-mortgage.com
www.in-mortgage.com
