What is a "Buyer's Market"?

Most real estate practitioners consider a typical market to be one in which homes take an average of six months to sell. Realtors keep track of this number by keeping up with the days on the market (DOM) of every home listed and sold.

If the number rises above six months inventory on hand, then the market is swinging into a buyer's market. If it falls below, it is becoming a seller's market.

A buyer's market is one in which there are too many homes on the market for the number of buyers. Homes take longer to sell and prices fall.

Sometimes buyers believe that winter time is a buyers' market. Homes offered for sale during slower times of the year are generally aggressively marketed, and may not sell for a significantly lower price than they would if they were marketed in a busier period.

In the spring, a seasonal adjustment occurs, and more homes come on the market. Buyer activity picks up as families with children (still the single largest buyer demographic) buy homes so they can move during summer vacation.

A buyer's market can easily exist in the spring, if conditions dictate that there are more homes than buyers, falling prices, and longer DOMs.

Sometimes a buyers' market can be created that lasts for a long time. The exit of one or more major employers from a community, a natural disaster such as a flood or earthquake, or some other catastrophic event can affect home values in an area for years.

As homes become more competitive, buyers realize that their interest is at a premium and they will increase their demands to sellers. Those nice chandeliers that normally would not be included in the purchase price of the home, now become a bargaining chip for the buyer.

The buyer may ask the seller to provide a home warranty at the seller's expense, or for the seller to pay more of the closing costs than usual out of the settlement proceeds, or any number of other contingencies.

The one certainty that can always be counted upon is that one side of the market will never stay on top forever. In fact, it can turn on a dime. The same area that remains depressed for a period of time can make a comeback as lower prices stimulate reinvestment. Contact your REALTOR® for more information about market conditions in your area.

-From my Newsletter @ http://www.SoldByWallen.com

Why Do I Need a Realtor for New Construction?

Most people think that they only need a Realtor to Buy or Sell an Existing Home - Not True! A Realtor can be a lot of help when dealing with New Construction. In the case of New Construction, the Home Buyer may think of the Realtor as a "Middleman", which I can understand the assumption, but it is far from reality.

An Experienced Realtor can be an asset when purchasing New Construction due to the fact that we deal with Buying and Selling Homes everyday. We can be a great help in determining Location or Lot Selection, which can affect the Resale of your home down the road, along with is a "Premium" Lot worth the higher price. Evaluation of Models regarding Lay-outs or Floor Plans in regards to Flow, Ease of Entertaining and Privacy. Determining "Upgrades" - what Bells and Whistles are Wise Upgrades and Desired Features that you will Enjoy, that will help you Sell your Home whenever you decide to Sell, and what "Upgrades" are Good Values and Money Well Spent!

A Realtor can also help you compare Builders, and developments. We can set appointments and show you existing homes built by the same Builder. This gives you an idea of how the homes may hold up over time, workmanship and materials used and what their completed developments look like. We can also help you make comparisons of similar developments based on Price, Size and Location.

One of the Main Reasons a Buyer won't use a Realtor is they believe it will cost them more money to buy New Construction using a Realtor than without using one, this is not true. The Builders appreciate working with Realtors. They know that we bring them qualified Buyers and can make their Sale go that much smoother. The commissions that they pay are paid from their advertising or budget. The Home will cost you the same whether you use a Realtor or not, so it doesn't cost you anything to have a Realtor represent you. If you do not use a Realtor you may be paying an unknown fee (for advertising) and not getting all the benefits of having an experienced Realtor representing you. Many Buyers feel that since there is an "On-Site" Salesperson, that is who they should work with in their Purchase. The "On-Site" Salesperson (at the Model Homes) works for the Builder and acts as the "Sellers Agent" (Builders Agent). Though they must treat everyone fairly, their purpose is to put together the best deal for the Builder - not you. Just as the Builder has their representatives, you are entitled to have a Real Estate Agent, a Realtor, a "Buyers Agent" to represent you, while also looking out for your best interests.

As you can see, there are many good reasons for using a Realtor to aid you in your purchase of New Construction. The most important thing to remember is to Contact a Realtor First, before visiting the Builder, or Builders Models. Even though Builders are happy to work with Realtors, many of them require the Realtor to accompany and register the Buyer on the first visit. If you meet with the Builder first, he may not allow the Realtor to represent you, leaving you to represent yourself. Remember, our Job is to represent YOU, so use a Realtor and you won't be sorry.

Written by Bob Wallen

New Listing

Are you looking for a Very Nice, Recently Updated Ranch Style Home in Mundelein, Illinois? I have a New Listing that if you are Looking up to $249,900 this is the one for you!

You will Love the Openness and Brightness of this completely remodeled Home that sits on a Quiet Cul-De-Sac Street. The Homeowners have put alot of Time, Thought and Hard Work into this One. This Home boasts a Completly Remodeled Kitchen with 42" Light Oak Cabinets (featuring an Appliance Garage and Pullout Shelves in the Cabinets), Planning Desk, Ceramic Backsplash, Ceramic Floor, All the Appliances, Can Lighting, Pantry and a Large Eating Area which makes a Great Country Kitchen, or could be used as a Dining Room. The Two and a Half Bathrooms have also been Totally Remoded, You'll find Ceramic Floors, Newer Tubs and Showers, Oak Vanities and a Pedistal Sink in the Powder Room. The Hardwood Floors have been Re-Finished and give the Home that Special Touch. It doesn't stop there - wait until you see the Basement. You'll find a Light and Bright, Spacious Second Master Bedroom, that could also be used as a Family Room if you choose and a 5th Bedroom or Home Office/Den/Craft Room. Throw in a Beautiful Full Bathroom and it becomes a Great Get Away Level with lots of Privacy! This Home has Newer Windows, Doors, Furnace, Central Air, Humidifier, Central Vac, Kitchen and Baths and the Roof and Gutters are Brand New- what more could you want, except to move right in.

Call me, or e-mail me to set up your Private Showing!

Welcome!!

I am your Real Estate Information Source, a Place for you to "Get Your Questions Answered" and find out what's Happening in Lake, McHenry and Northern Cook Counties.

The Media is really playing up how the Real Estate Market "Bubble" has popped. I think that if everyone starts believing what they are hearing, it is possible that it will happen - remember the story about "The Sky is Falling, The Sky is Falling". I am still seeing quite a bit of activitiy in our geographic area, my office is Century 21 Market Place, Ltd in Mundelein, Illinois. Sellers are still putting their homes on the Market, Buyers are still looking for a new home and Interest Rates are still at Great Rates and have even dropped recently, too. So is it a "Bad Market? I wouldn't say it's Bad. We do have a larger Inventory of Homes on the Market compared to Last Year, but as a Buyer, that gives you more to choose from, and due to competition you may get a little better price. As a Seller, you have more Competition, so you need to make sure that your home is Priced Fairly, Ready to Sell (in the Best Shape Possible - Clean, Staged, No Clutter, Looking it's Best) and Marketed using all the Tools. I don''t think we are going to see the glut of "Multiple Offers" that we saw over the past few years. This may slow appreciation down to less than 5% or make it flat this year - but did we honestly think that appreciation could keep going at the double digit rates it has been growing at? I think that we are seeing an adjustment - but nothing like the Stock Market - people will always need a home and our personal situations will make moving to a new home or new area a necessity.

Written by Bob Wallen