“The Housing Bubble has Burst”, “Housing Market Tanks” and “Rents Rise as Housing Market Crumbles” are statements made and outline the current headlines.
For those involved in the real estate market in either buying or selling, both sides are currently looking for some way of gaining an advantage in the negotiation process – if the deal ever gets that far.
While lenders are looking more closely at those loan applications in hopes of eliminating the risk of loans going into default requiring foreclosure proceedings, first time buyers and those with little money down are finding homeownership remaining a dream in the volatile housing market.
Sellers, some of whom opted for the variable rate loans that were so easy to get in days past have found the reality of their decision less to their liking and have opted to cut their losses and sell out.
Buyers, on the other hand, are finding properties priced either out of their reach or in need of more money in order to secure financing. Investors for the most part are sitting still and watching what happens in hopes for snatching up properties in foreclosure and flipping them for a profit.
Realtors® are scrambling in their efforts to make a decent living in a very challenging market while Real Estate Brokers look to stem the hemorrhaging of agents from their brokerages on to more steady paychecks. Brokers are also scrambling to educate less seasoned agents and, in some cases retrain more seasoned agents with strategies of how to sell in the current market.
For sale by owner signs are popping up on more corners than ever before as sellers look to increase the money in their own pockets by selling their own homes without the assistance of a reputable Realtor®. While a viable for some sellers, the work associated with this selling buy owner option can sometimes add pressure to an already pressure-filled undertaking.
Realtors® are aware of methods of selling in a hard real estate market and have tools for assisting both buyers and sellers come together in the game of ‘Let’s Make a Deal’ and many do a fine job of doing so using strategies that have been learned only by experience and hard work.
“Tools”, as one agent recently stated, “are an investment, are there to be used, and need to be visualized that way.”
One of the tools misunderstood and sometimes misused is the tool of a home inspection early in the real estate process. Sometimes called ‘Pre-listing Inspections’ or ‘Sellers’ Inspections’, a home inspection is one way of setting the stage for a successful real estate transaction. While not required by law in the State of Tennessee, most reputable agents suggest a home inspection as a part of the process, mostly for buyers, but not actively suggested for sellers.
The inspection is required to be performed in compliance with the Rules of Tennessee Department of Commerce and Insurance Division of Regulatory Boards Chapter 0780-5-12 which is readily available on the web at: http://state.tn.us/sos/rules/index.htm. Essentially, a home inspection is a visual examination of readily accessible systems and components listed in the Chapter along with a report of the inspector’s findings.
The home inspector is required to be licensed by the State of Tennessee AND carry both general liability and errors and omissions insurance.
There are three identifiable and valuable benefits for sellers who hire a home inspector prior to marketing a property:
1. The inspection report informs the seller of any significant defects that might need attention and that could adversely affect their chances of selling the property. It affords the seller opportunity to make repairs prior to sale and use the report in its entirety as a marketing tool.
2. The report enables sellers to provide a more thorough and complete disclosure of the property's condition. This lessens the likelihood of legal problems after the sale, when undisclosed defects might then be discovered.
3. The report provides the best basis for an as-is sale, if that is what a seller may prefer. The seller can decline to make repairs while fully informing the buyers of the conditions that need repair. Being proactive in today’s market is an essential element on the journey to success.
A seller’s home inspection report is the proactive element that can assist in making dreams become a reality. Realtors® are quick to point out the cosmetic elements that improve the curb appeal of a property. Once the potential buyer is within the home, cosmetic fixes such as paint and tile can make the property very appealing to the eye eliciting that ever important emotional bridge between potential buyer and future homeowner.
A seller’s inspection report can seal the deal if used in a proactive manner to gain that end result.