Erickson Tribune

Charlestown

UPDATED: Friday, March 30, 2007

Home sellers look to spring for market renewal

Posted on Friday, March 30, 2007
 

By Julia Boyle and Jeff Ostroth
THE ERICKSON TRIBUNE

With blooming flowers, longer days, and warmer weather, spring has arrived. And that means the most popular real estate selling season is already underway.

“We experience that spring is a very popular time to move, particularly if we’ve had a harsh winter when people have had to deal with shoveling, ice, or anything that didn’t allow them to leave the house,” says Brad Andrus, sales and marketing director at Charlestown.

This spring, real estate agents like David McIlvaine of Keller Williams Realty in Ellicott City expect a market that will benefit both buyers and sellers, making moving even more appealing to many people who have been putting it off. “I anticipate a very strong spring because it’s a great time to buy and sell,” McIlvaine says.

Turning point?
The residential real estate market took a bit of a breather over the past year or so, but many, like McIlvaine, see hopeful signs of an upturn this spring.

“When existing-home supplies become more balanced between buyers and sellers this spring, we’ll see some modest price gains,” says National Association of Realtors’ (NAR) chief economist David Lereah. “Some of the monthly gain may be weather related, but it appears buyers are becoming more comfortable, sensing the timing is good and that their local market has bottomed out.”

According to NAR’s senior forecast analyst Lawrence Yun, the market will soon reach this neutral state because more affordable housing will create increased demand, therefore decreasing housing inventory.

This balancing act may have begun late last year. According to the Maryland Association of Realtors, November sales of existing homes in the state shot up 5% from October. While overall sales were still lower than a year ago, the NAR’s Pending Homes Sales Index—a measure of homes contracted for sale—showed future sales trending upward.


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Local outlook
McIlvaine cites a local reason for the Maryland market coming back into balance. “Base Realignment and Closure (BRAC) involves closing and relocating military bases mostly in the Northeast to Aberdeen and Fort Meade,” he says.

The Maryland Department of Planning reports gains upwards of 13,000 civilian and military personnel over the next few years. “With the influx of the BRAC-type scenario, we’re going to see a strong economy here in Maryland. That means housing prices are going to grow over the next five years, which is good for sellers,” McIlvaine says.

This growth may spur people to think about selling their house within the next few years. Some people, like those considering moving to a retirement community that has a waiting list, such as Charlestown or Oak Crest in the Baltimore area, may start planning now.

“Depending on the apartment a person wants, the Priority List waiting time ranges between six months and four years,” Andrus says. “Even if a person is not ready to move right now, he or she can join the Priority List in order to get the ball rolling without making any commitments.”

Oak Crest Move-in Coordinator Laurie Bender says once an apartment becomes available, the time between reserving an apartment and moving in usually matches the time required to sell a house in today’s market. “Once a person reserves an apartment, he or she has two months to take possession of the keys and three months to pay the 100% refundable entrance deposit,” she says.

The right time
Bender says although spring may seem like the most popular real estate season, in her market any time has potential. “For us, it really depends on when apartments become available because many people on the Priority List wait for specific styles or locations,” she says.

To these people, like most, a home is much more than an investment—it’s where they carry on their lives. By planning ahead, being prepared to sell their house when the time comes, and not waiting for that elusive “best time to sell,” they are able to settle comfortably in a home that will serve the way they want to live.

Whether you’re moving to a retirement community, a new house, or a new area, “Your best bet,” according to journalist Holden Lewis in a column for Bankrate. com, “is to time the buying and selling of your home based on your needs.”


Tips for selling in a competitive market

Be wary of going it alone.
The “for sale by owner” route has always been for the strong of heart, and in a market where buyers have lots of other choices, there is much less margin for error. Most would do well to get a reputable professional agent who understands the local market as it is today.

Price your home correctly.
A house that is priced too high is going to sit, and a house that lingers on unsold becomes a stale property. On the other hand, a right-priced home gets attention and perhaps even competing bidders. Listen to your agent’s recommendation, and don’t fight it too hard.

Make your house stand out.
With lots of other houses on the market, it’s crucial that your house shows its best. You don’t, and shouldn’t, have to spend a lot of money—fresh paint or a thorough cleanup can reap big returns in a home’s final selling price. Firms that specialize in “home staging” and the best real estate agents will help you dress your house for success.

Think creatively.
Your competitors in the market for newly built homes are throwing in free swimming pools, granite kitchen counters, and vacations. You and your agent might also think about added-value deal-makers—from basic things like a home warranty to helping with the buyer’s closing costs. A more unusual offer might be that extra car sitting in the driveway—perfect for that couple moving from the city.



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