At best, the information on radio and television airways is befuddling if not utterly useless to the serious buyer or seller.
Consider the findings published by ACRE (Alabama Center for Real Estate) and you just might breathe a sigh of relief. These statistics are gathered from reporting MLS’s around the state and for now are promising.
Moreover, drill down into the market at street level and things get more interesting.
• In 2004, a big brick 4 bedroom 3.5 bath home is built and closes for $305,000.
• In 2012, the owner must relocate out of state and puts the house up for sale. Realizing the languid market, and upon advice from his Realtor™, he prices aggressively at $269,900 (the highest resale in the subdivision at the time of listing was $254,000).
• Contract comes in well below list price, but after much wrangling, buyer and seller agree to a sales price of $267,000.
• Then, the appraisal comes in…………..at a price of $264,000.
The seller is sunk, right? Appraisal falls short, there’s a $3000 deficit between what the lender will finance and what the buyer has offered. Seller must yield to sell for the appraised value, correct?
NOT SO FAST!
In this case, the seller was paying no buyer closing costs but left several pieces of personal property. This (and other factors known only to the buyer) made this property more desirable than its competitors! In the final analysis, the buyer financed the $264K and brought the additional needed $3000 to the closing table. In this case the seller was able to command top dollar for his home.
The sale of a home is always an emotional decision and is always a matter of supply and demand – always. If you have a real estate decision to make, forget the forecasts, turn off the talking heads – they get paid to attract and retain viewers. Carefully consider the home, consider the market you face, talk to your Realtor™, and make an informed decision. You’ll be glad you did.
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