NH & Maine Real Estate Blog - White Mountains

Some sellers believe that they need to price their properties high in order to give themselves room for negotiation, but then find that they have no buyers to negotiate with! A newly-listed home will generate an initial surge of activity. By overpricing, you deter interest in your home when the market is usually at its peak. Then, when a property stays on the market for weeks, or even months, a perception arises that there is “something wrong” with the property.

Right now, we are experiencing a “changing market” as the supply outnumbers the demand. There are many more homes on the market for buyers to choose from and as the market is leveling off, prices are on the decline. In Fryeburg and Brownfield, there were 56 Residential sales in 2006 vs. 49 Residential sales in 2007. What’s more, in 2007, 3 homes came on the market in January and February, vs. 11 homes for the same period this year. The good news is, this area is not taking a beating nearly as much as in some other parts of the country such as Florida and California.

In pricing your property to sell, you want to be ahead of the curve, not chasing the market downward. If you’re behind the curve, as the market declines, you keep dropping your price, yet you’re still one step behind the market. Eventually your property sells, but for less than it would have had you priced correctly in the first place. By pricing it slightly below the market initially, you’ll hit the correct market value right away, for an easier sale and you will actually end up with more money than you would have if you had overpriced it and kept chasing the market downwards. In fact, pricing your home low may even generate multiple offers, thus driving the price up!

To determine the correct price, you need all the facts. Hire a professional Realtor who can supply you with the facts about where the market is now, where it has been, and where it is going. Don’t try to wing it on your own, hoping to save yourself the commission. Professional advice is well worth it in the long run, as you stand to gain much more than the commission that you will pay a trained professional.

Suzie Laskin

We’ve all heard the media reports, “Now is not the time to buy a home!” If you are a seller, those words make you want to throw in the towel in despair. But, real estate markets are local. National statistics are nothing more than averages that vary from region to region. There are areas in the country where these words may apply, but in the Mt. Washington Valley, the picture really is not all that bleak.
Many of the buyers in our market are looking for vacation homes. These folks often have more disposable income than the average home buyer, and the sub-prime mortgage market failure has not affected these buyers like it has for so many other people.
Prices in our market have indeed declined over the past two years, but the large increases that we saw over the previous 5-7 years far outweigh the recent declining prices. If you purchased your home more than three years ago, you will still earn a nice profit from the sale of your property.
What is true however, is that the time it will take for your property to sell has increased, causing more homes to be for sale at any given time, thus increasing your competition. Buyers have many more choices and can take an extra day or two in making a decision.
The good news is, there are steps that you can take to make your home stand out from the crowd and shine. There are some things that you can control and some that you cannot. For example, you cannot control the location. But you can control the appearance of your home. Just as on a first date, you only have one chance to make a great first impression, the same is true for your home. Make sure that the entranceway is inviting. Shovel a wide path in the walkways. Make sure that your customers have easy access. Paint the front door, and wipe sticky fingerprints off the doorknob. Keep the house clean and tidy and especially uncluttered, inviting the buyers to picture their belongings in your home. Your family photographs are important to you, but they can be distracting to a buyer who is trying to picture their family and their furnishings in your home.
Certain colors are known to be more inviting than others. Hire a professional who can help you stage your home with the right colors and accessories. Although the news reports may make you want to scream, there are definitely many steps you can take to make your home stand out from the crowd and become one of the SOLD statistics.

Suzie Laskin

1. Selection, selection, selection. There are over 1,000 resale homes on the market in Carroll County. Just a few years ago the resale inventory was significantly less. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of single family homes, condos, and townhouses. You can also find large lots, small lots, and a lot that will accommodate your boat or RV. There are lots of options in this market.
2. No Bidding Wars. In 2006 we had one client that received three offers on their home. The property was bid up substantially from the original listing price. Others had escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. There is no competitive bidding in this buyer's market.
3. You can make an offer. A few years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price vs. list price ratio is 93% - 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
4. Patience is tolerated. In the hot seller's market that existed everything was rushed. Find a house before other buyers did. Hurry up and make the offer. Today a buyer can take their time. Look at several homes and think about the decision for a few hours.
5. Due diligence is welcomed. In this market a buyer is encouraged to obtain a home inspection, water test, and appraisal. In 2005 many buyers waived these contingencies in order gain an advantage with multiple offers.
6. Repair requests are welcomed. After a buyer completes a home inspection, they are allowed to submit a repair request to the seller. In the past a seller might insist the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
7. Real Financing is available. The 'wink, wink' zero down, no doc, adjustable, sub-prime loans are gone. Fixed rates are back. FHA financing, Rural Housing loans, first time homeowner programs, special loans for teachers and police officers are back in business. It's a great time to buy real estate!

Joy Tarbell

I have had a steady increase in properties going under contract since Thanksgiving. 2006 was an abrupt stabilization of the market where rapid appreciation came to an end. It's like the first half of 2006 was normal, the second half contracted and rebounded. All markets are cyclical, and this one has balanced out faster than in the past.
In our web stats we're seeing more traffic return and more people are bookmarking the site than ever before. This is an indication that there are more serious buyers coming into the market. They're probably starting to see the opportunities out there.

Joy Tarbell

Welcome to the Prudential Joy Tarbell Realty real estate blog. Here you can post any questions you might have or talk about the areas that interest you. We serve the Mount Washington Valley area of New Hampshire and the foothills and lakes region of Western Maine.