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The third and last Realtor provides a figure that is above or very similar to yours. You immediately agree with this Realtor and start making plans on the next steps.

In most cases you would pick Realtor Three. This agent most likely seems compatible with your plans and is willing to work with you. This agent seems determined to meet the same goals that you have set, which is making the most money possible off your house. And should the house not sell, you can just easily drop the price a bit later. Is it too good to be true?

The reality is that this Realtor might be doing a sales practice called buying a listing. He or she bought you by suggesting a high price that is higher that the other agents and is one that you would immediately agree with. It is highly probable that he has no faith that your house will sell at its current price and his or her goal in the beginning was to convince you into lowering the price.

For many Realtors this is a often practiced strategy to get clients, though for others it might just be that they feel for the home sellers and are only trying to help. In either case, it is not necessarily bad because it will get you to sell your house!

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Here are some tips that you might want to use if you happen to make or receive a lowball offer.

To the Sellers:

While as a home seller it is to have a personal affection towards your homes, try not to feel insulted when someone gives a low offer. Look at it optimistically in that they are interested in your property.

To begin with, you should try to understand why the homebuyer’s offer is so low. In several occasions it is their misunderstanding of the condition of the house. One dislikable aspect might cause them to think that several other things need changing when they actually don’t. Also try to make sure they know all the positive facts about your house.

Even if the offer is far below a price that you can permit, still make a fair counteroffer instead of your lowest acceptable price. Homebuyers often make lowball offers in anticipation of further negotiation.

Another important tip is to ask your homebuyers or their agent if there are any other factors of the deal that are of importance such as closing costs, move-in date, or owner financing.

Try to find other services that you can offer to keep the asking price. Such services could include furnishings or other things that you no longer need. Try different lures, anything that might work as long as you make money from doing it.

Making low cost fixes and upgrades to your property can also increase the price of your house. Homebuyers are often impressed by home improvements and could cause them to offer more.

If you continue to get lowball prices then perhaps it is time to study the facts and ask yourself a question. Is your home higher in price that other similar homes? If so then it is time to take it off the market and let things cool down for a bit. Perhaps go on and fix a few of the grievances that the potential homebuyers have expressed. When you are complete and re-list, be sure that the quality of the house can explain its price.

To the Buyers:

When looking at a real estate, always compare it to similar houses to ensure a fair asking price. Asking prices decently higher than other houses provide you with more negotiation room.

Also check the history of the house and how long it’s been on the market, as well as the changes in price if there are any. If it has a long history of price cuts then perhaps it is as low as the home sellers are willing to go.

View the public records that can be found online using sites such as RealEstateABC.com and Trulia.com. Public records will reveal how much the owner originally paid for it. Home sellers who have owned the property for a number of years will have the most negotiation ability, while those who have only owned it for a short amount of time might actually owe more than the worth of the house.

Try to understand the home seller and figure out the reason of the sale. Often times, home sellers are more willing to accept a low offer when they have a good reason or need to get rid of the house. You also might find ads that express their willingness to sell the house.

Keep in mind that the majority of sellers believe that their home is better than others. By making a low offer, they can get the idea that it is not necessarily true, especially if you or your agent justifies your offer by making claims that extra amounts need to be spent to make the house worthy of the asking price. Such claims could include needed remodeling or fixing.

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He was about to loose his home due to a foreclosure and did not have too much time. He had only one month and a half left before the redemption period ended and the bank repossessed his property. Short sale was the only option and there was no time to think but to take action and we were ready for the challenge. That same afternoon the property was active in the MLS and we started to promote it in every possible way.

I must say that no much time to perform a “short sale” is a little difficult task taking in consideration that we had a dead line for the closing date, and we could not go beyond that specific day otherwise the bank repossesses the property even if they have an offer accepted so everything had to work at perfection. This is not a quick process since the bank is the one that approves the offer sent by the buyer(s), make sure the seller had a good reason for going in foreclosure such as loss of job, cuts in work hours or overtime, retirement, illness, injury, death of a family member, or divorce or separation so they are able to forgive the difference between the selling price and the payoff of the mortgage (If you’re selling the house yourself to avoid foreclosure, make sure you get all “promises” in writing), they also make inspections in the property, and most important they make sure it is not a big loss for them.

Good work pays off - A week or so after listing the house and over 80 showings, including the open house we had three offers on the table. We sent them to the bank for approval and then follow-up for a painful and stressful long month. After that everything was ready and we finally close and sold this property the last day of the redemption period.

The Seller could not be happier and relieved. Even though he had to move out his home, and no profit out of the sale, he knew that when time comes he will be able to overcome his problems and start a new home without the hassle of having a foreclosure on his record.

Short sale or Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

You may qualify if:
1. The loan is at least 2 months delinquent;
2. You are able to sell your house within 3 to 5 months; and
3. A new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.

Remember do not lose your home and damage your credit history. You can call or write your mortgage lender immediately and be honest about your financial situation, DO NOT IGNORE THE LETTERS FROM YOUR LENDER. Also explore every alternative to keep your home. Do not sign anything you don’t understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation. Act now - Delaying cannot help. If you do nothing, YOU WILL LOSE YOUR HOME and your good credit rating.

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The report issued monthly by the National Association of Realtors, a professional association which tracks such statistics as number of sales, prices, and inventory said that April sales dipped sharply by 2.6 percent to a seasonally adjusted annual rate of 5.99 million homes. That level is the slowest and weakest pace set since June of 2003.

In addition to the sharp decline in the number of sales, sales prices also dropped sharply. The median sales price of a home in this country fell to $220,900 which reflects a reduction of .8 percent from April of 2006.

Adding to the difficulties besetting the U.S. housing market are the increasing troubles in the subprime market. Delinquency and default levels are rising dramatically, with a prospect of even more foreclosures threatening in the next 18 months. The subprime mortgage market is aimed at the group of home buyers who may not be able to obtain so-called normal credit or mortgage loans.

Because many subprime mortgage loans made two to three years ago in a booming housing market are now coming up on balloon payments or the first round of rate increases, it is increasingly apparent that the mortgage industry is going to be hard hit in the near future.

Many of the subprime mortgages were placed at the maximum ability of the borrowers to repay with the assumption that salaries would increase, credit picture would improve or the house would continue to increase in value as it had in the previous 2-3 years. None of those things have happened. In addition, because of the type of mortgage, many homeowners now find they actually owe more on the property now than when the loan was first taken out.

As more houses are lost to foreclosure and more people are trying to market the properties quickly in order to avoid foreclosure, property prices continue to slide, while the inventory of unsold homes climbed to 4.2 million in April also an unfavorable record.

The market is hit with a three fold problem for which there may not be an easy solution. Because of the declining prices, first time home buyers may decide to wait a bit longer before purchasing in order to take advantage of even lower sale prices. Those who are at risk of foreclosure, or already in foreclosure will not be able to purchase easily and in the meantime, the lenders are holding an increasing number of foreclosed properties which they are unable to sell except at heavily discounted prices, which drives the average sale price of a home even lower.

Gus Taperman holds a Bachelor’s degree in Commerce and completed his master’s in Business Administration . He is working as writer and financial consultant http://www.taperman.com

Article Source: http://EzineArticles.com/?expert=Gusi_Taperman
http://EzineArticles.com/?House-Sales-And-Prices-Fall&id=602200

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