It's No Mystery

You don't need a crystal ball to try to predict the future of the real estate market. Every time there is a downturn, an upward trend always follows. The best course of action is to look at the causes, and make decisions based on unbiased facts and incontestable history.

As the choice of loan options grew these last few years, consumers could buy a home more easily. Wall Street took notice of all the hot action in real estate, and investment firms were able to shift the ownership of mortgages to their managers and clients.

Then about three years ago, the market began cooling, as incomes did not increase at the frantic pace that home prices did. Investors had created an atmosphere of unrealistically high appreciation. The perfect storm was brewing.

This cycle of up and then down seems more drastic now, because we enjoyed a longer than usual boom of activity, a full decade of it between 1995 and 2005. But demand still remains high, and although rising slightly, our historically low interest rates also help to fuel property purchases.

While there is no such thing as a national real estate market, we should be seeing improvement across the board as 2009 draws to a close. If you can, it's wise to buy now - before the ball lands back in the sellers' court.

Raise the Curtains

If you're selling in anything other than a hot market, you might find "staging" your home can help generate more interest and offers. You needn't spend thousands of dollars on improvements or professional consultants, however. There are several things you can take into your own hands to improve your home's appeal.

Begin by removing scatter rugs and knickknacks, which can clutter a room. In the kitchen, remove all appliances from the counters except the coffee maker and microwave. Set your dining table in a welcoming fashion, with plates, flatware and napkins.

You might be tempted to throw everything into the closets, but buyers will look there, too, so box everything up and place into storage. Focus on the "feature rooms" - the dining and living areas and master bedroom - keeping additional rooms as sparsely furnished as possible. Do your spring cleaning now, scrubbing the walls and floors and shining up those windows.

It has been estimated that one out of four homes listed are "staged," and "The Complete Idiot's Guide to Staging Your Home to Sell" states that you could gain up to $9,000 on a $200,000 house if it's properly presented. You might spend up to $100 per room in time and money, but that's a pretty small investment for that kind of return. Your real estate representative will have even more suggestions.

Time to Make Lemonade

When one hears the word "foreclosure," images are conjured of families unable to meet their loan commitments, and forced to consider unpleasant options. However, it's not only homeowners that suffer from a foreclosure. Renters can be "out on the street" if their landlord defaults on mortgage payments.

A report from the Mortgage Bankers Association states that nearly 20% of recent foreclosures have been against investors who did not live in the property, and even tenants in good standing face having to vacate the premises if they're renting one of these properties.

Why mention this gloom and doom scenario? Because home values have declined, and buyers are seeing the best deals in many years. While unpleasant for sellers, price declines increase affordability for buyers, so if you've been renting, now is a fantastic time to turn that monthly payment into equity.

Interest rates have inched up, but still-historically low rates combined with very affordable housing yield a formula that should put you in a home that you own for the same amount you are now paying for rent. Not to mention that at a lower purchase price, you'll enjoy some great appreciation over the coming years.

Just because you're renting now, you’re not necessarily safe from suffering the consequences of a foreclosure. Take matters into your own hands and buy yourself some peace of mind.

And Now, The Good News

Consumer Reports recently published a survey, and the results indicate that there is, in fact, some good news in the real estate industry! While foreclosures and other economic factors still exert some negative impact, those buyers and sellers who have worked with real estate professionals expressed a high degree of satisfaction, both with their representatives and with their bottom line.

Nearly 10,000 consumers were surveyed, and nearly three-quarters of those buyers and sellers reported that they were very or completely satisfied with their agent. More good news: 86 percent of sellers who listed with a professional made the sale! (Many of the remaining percentage still had their homes on the market at the time of the survey.)

Other results showed what all agents already know, because over four-fifths of consumers who listed through a broker netted an average of only $5,000 less than their asking price. On the flip side, two-thirds of buyers who used a representative paid about $5,000 less than their purchase's original listing price. (The remaining third, who negotiated on their own, ended up paying very close to the asking price.)

So what do all these statistics mean to you? Regardless of your market’s conditions, when you face the need to buy or sell your home, you'll get the best results when you seek the representation of a qualified real estate professional!