While common in commercial real estate, in residential real estate it is very unusual to see private individuals offer high-ticket items to homebuyers. Well it is happening now. Homebuyers in today’s market are being pampered with many attractive incentives coming from the government ($8,000 credit), banks (low interest rates) and the sellers (i.e. 2010 Chevy Camaro). In addition, residential home prices have backed away from the over exuberant valuations, which peaked in 2006.

Some would argue that today’s real estate market is depressed and the home prices have fallen dramatically to their new lows. Well, the latter may be true but the reality is that the home valuation should have never been that high in the first place. US Government market intervention (Fannie Mae and Freddie Mac) mandating banks to lend money to not-credit worthy individuals and many unscrupulous financial institution lending money to those who could not really afford their purchases coupled with lack of personal responsibility (homebuyers) resulted in an unsustainable price hike.

Today the real estate market has retreated to normal conditions, which is constituted by an adequate product supply and qualified demand. Homebuyers must be financially qualified with the minimum 20% down payment and good credit history to purchase properties. They are being rewarded for being able to save enough money for a down payment and good credit. There is good inventory and buyers are able to shop around and find perfect property for their needs and wallet.

Also, in today’s real estate market real estate professionals are required to be more creative and more resourceful to facilitate a sale. Skills and competence are two most important qualities expected from a broker and sought after by sellers. More attention is being paid to the advice from a qualified professional in marketing and advertising a property. More often sellers seek guidance in making educated decisions. Selling a home proved to be an art and must be carefully crafted based on the potential buyer needs rather than the sellers likes.

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Sponsor: Kamil Ashkar of Englewood Auto Group
Tel: 201 871-0606
www.englewoodautogroup.com

Contact: Helena Lobo-Zagorski
Prominent Properties Sotheby’s
Tel: 201 478-3185