You’d like to put your house up for sale but you’ve heard about problems in the housing market. Fanny What?, Freddie Who?
You watch the news and you don’t really understand what they’re talking about, but it’s scaring you to death. You don’t want to lose the fortune you’ve invested in your house. You’ve always heard that real estate is the best way to invest your money?
Is it the right time to sell or not? You may need to educate yourself.
If you know what the stock market is, then you’ve got to realize that housing prices rise and fall just like the stock market. If you still don’t know what I’m talking about, it’s time to go to the library and check out a book Called The Housing Boom and Bust by Thomas Sowell. It’s an excellent primer on the history of housing prices and the current housing market.
On the internet, check out Wall Street Survivor. It’s a website that let’s you use funny money to learn how investing works.
You could even tune your TV into one of the many stock market shows during the day like Fox Business News, Bloomberg TV, or CNBC.
You have to understand if you’re living in a buyers market or a sellers market.
The value of homes depends on the old fashioned law of supply and demand.
Buyers Market: If there are more homes for sale in your area than there are people who want to buy them, that means there is competitive pressure on the sellers to reduce prices and buyers have the choice of homes.
Sellers Market: If there are more people looking for homes in your area than there are people who are trying to sell them, there is competition among buyers to get the house they want and prices go up.
The interesting thing is… it’s completely dependent on your local market. Some parts of the country can but up and others down.
The easiest thing to do is call your local real estate agent and they’ll be happy to prepare a Market Analysis for your home. If they aren’t willing to answer your questions without a big sales pitch, call another one.
Invite them to come out to your home for an evaluation. They’ll measure the size, count the rooms etc. so they can compare your home to others.
Then, it’s time to head to their office. Don’t hesitate. All the tools to determine the value of your home are there. You can get custom printouts, maps and all the information you can want.
They’ll be able to show you ALL the homes for sale in your area but more importantly, they’ll show you how much houses SOLD for in the past 6 months.
After that, you’ll have a good idea of what your home is worth. Good Luck.
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