Fall’s Fine For Real Estate

By Nellie Arrington

As September begins, the real estate market promises a healthy fall.

Interest rates remain between eight percent and 8.25 percent—less than they were just three months ago although slightly higher than this time a year ago. Real estate conference rooms are full and sales boards look great.

Indications are that the Federal Reserve will not raise its discount rate soon. First, key factors such as decreased sales of existing homes—reflecting May’s interest rate increase above 8.5 percent—argue against further action, and show that the Fed’s previous rate increases are slowing the economy.

Second, the Fed and its leader, Alan Greenspan, are political animals, and historically do not change rates close to a national election.

In fact, the only problem is the lack of listings in all price ranges. Out-of-town buyers often find they have a selection of just five to eight houses in their price range, and one or two of those may be sold before they can return to the real estate office to make an offer.

Some wonderful houses have stayed on the market, despite the activity. In some cases, these sellers “tested” the market and priced them too high. These have since had price reductions. Other houses are in less popular areas, and often represent great values because they are priced less than a similar house in a currently trendy neighborhood. Still other listings, which have been on the market for a while, are now closer to their occupancy time. These are houses that buyers should seek out, rather than dismiss with the thought that other buyers have not liked them and neither will they.

If you are a prospective seller, some actions you take will ensure your successful marketing, whenever you put the house on the market. Even in a seller’s market, these hints enhance your property value.

Make sure the house sparkles. Fresh paint in neutral tones always impresses buyers. Remove scuff marks on walls and floors. Carpet should be less than five years old and immaculate, without stains or traffic patterns.

Tidy the outside. This year’s welcome rains have encouraged weeds as well as flowers. A new layer of mulch dresses up landscaping. Power wash siding and clean windows.

Plant some seasonal flowers, such as mums and asters, to add appeal to the front entrance. Fall landscaping can look straggly as summer flowers die back, and having something blooming perks up the beds.

Curb clutter by packing extras, preferably storing them off the property in a rented unit. The more space visible for living to your buyers, the more they’ll want your house.

Resist the temptation to push up the price for the house. While the market tolerates houses priced at the top of their ranges these days, it does not tolerate overpriced houses. Buyers who see even five houses quickly get a feel for value, and will quickly turn down a property that they find too expensive without even trying to negotiate an offer.

If you are a buyer entering the market, whether now or next spring, you can also do some homework.

Talk with a lender to become pre-approved for a loan. That means you’ve had a full credit report, verifications of your income and cash, and only need a contract and the appraisal of the house you buy when the time comes. If you are not buying until the spring, you’ll get a pre-qualification now. This is especially important if you are short of needed cash or have existing debt, because a good loan officer will help you work through those issues.

Avoid Internet lenders who are not local. These lenders are racking up high “garbage” fees and failing to give accurate estimates of closing costs or timely processing of loans—headaches that can costs you lots of dollars out of pocket or even prevent you from being able to finalize your purchase of a house.

Do, however, use the Internet as well as area homes advertising magazines to get a feel for what you might want to buy and what prices are running.

Drive through unfamiliar neighborhoods—ones you might not know—to see what they offer. Plenty of hidden communities are delightful surprises.

And whether you are a seller or buyer, remember that the fall real estate season is often as busy as the more-touted spring market in Howard County.

Nellie Arrington, CRS, is an associate broker affiliated with Long & Foster Real Estate, Inc. She can be reached at 410-715-2703, or through her web site at http://www.marylandhouse.com.