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 January 26, 2009

The Today Show Says San Diego Real Estate is Already Showing Signs of a Rebound
Here's some good news that was discussed recently on the Today Show. The focus was on some of the real estate myths that are out there for buyers and sellers. Several topics were discussed, but the one that stood out was when they were talking about how some people think that now is the worst time to try and sell your home. The myth was debunked by saying that it was not necessarily true for all markets. They went on to say that markets that were hit the hardest like Phoenix, Las Vegas and yours truly, the San Diego real estate market are already rebounding and that if you have been wanting to upgrade your home, now maybe the right time. The logic behind their reasoning is even if you take a loss on your current home by selling it now, you will be gaining when you purchase your new home by getting it at a great price.
In the rest of the article, I will give a summary of the remaining myths that were discussed.

The myths for buyers were:
If a home is on the market for a long time, it is easier to negotiate the price. The myth was debunked by saying that the longer a home on the market may mean that the seller is not open to price reductions.

The second myth was that all home sellers are desperate to sell their home. Most of them are not, but it says to make sure to ask why they are selling their home. A person who is selling to move to another city will be much more motivated than someone who wants to move into a bigger home.

I don't have twenty percent, so I can't buy a home nowadays. Not true. If you were to get an FHA loan you would only be required to put down 3 1/2 percent and you can also ask the seller to pay for the closing costs.

My credit is not good enough. The FHA can help you and they do make loans to those with bad credit.

I'm waiting for the housing market to bottom out before I buy. You can't predict when the market will hit bottom and by the time it does, prices will already be on their way up.

The rest of the myths for sellers were:

The myth of never responding to a really low offer is debunked by saying that you should respond with a realistic counter offer and most of the time buyers will come up on their price.

Nevers respond to the first offer. Many sellers think that another better offer is just around the corner. Statistics state that 4 times out of 5, you will not get a better offer than the first.

I'll reduce my price later, but, for now, I want to test the market and see if anyone bites. By doing this, you put your home in the wrong category when people search for homes. All that will happen is that buyers will disregard your home while being impressed by the others in the same category because those homes are priced correctly.