Concerns for selling existing homes

When I was listening to Howard Clark on talk radio yesterday, he highlighted the recent news about new home sales statistics vs. existing home sales. Did you hear the news? The latest reports show that existing home sales are down 13%, but that new home sales from builders are down twice that percentage.

Besides the trauma that home builders feel, it has an impact on the homeowner who is currently trying to sell their home in this market. Unfortunately, existing home sellers can not equally compete against a home builder. He/she is able to offer incentives that the existing seller cannot. Also, they can drastically lower the price to avoid bankruptcy and prepare to fight another day.

Unfortunately, I am starting to see the impact on my current homeowners that have listed with my company. With the last 2 agents that I spoke with to get feedback on what their clients thought of my listings when they showed them this week, both said that their clients were leaning towards the new homes because of the incentives being offered.

Lesson to buyers: bargains to be had in new homes!

Lesson to sellers: reiterate how long it took for your punch list to ever be completed by the builder!

for more information, check out: www.audreybutlerhomes.com

It's a buyer's market

For the last two days, the International Builder's Show has been held at the Orange County Convention Center. Several speakers have addressed the issue on every builder's mind: What is this year's housing market going to look like?

Of course, some level of speculation is involved---no one knows for certain. Yet experts can look at the economic factors, and weigh in on their thoughts about the real estate market in Florida.

Frank Nothaft, chief economist for Freddie Mac, predicted the builders would see improvements on the second half of 2007 and home starts continuing into 2008. However, he reminded them that the "wonderful days" of 2004 and 2005 would not return.

David Berson, chief economist for Fannie Mae, told the builders there would be a gradual improvement later this year after a few more months of a soft market as home sellers lower prices to entice buyers.

Mike Larson, analyst with Weiss Research (Jupiter), warned attendees to not expect miracles.

What does this mean for you, the buyer? It is a good time to buy!

Expect the builder's representatives to bargain with you. Does this mean you don't need to use a realtor when visiting new building developments? No. Rely on a realtor's knowledge of this market and incentives available to negotiate the best deal for you. Make sure you have representation to help you through the complete sale.