With home prices back on the rise, this is a perfect time for both buyers and sellers to get off the sidelines and back in on the action. That’s according to CNN, which this week offered an “action plan” outlining how to best take advantage of this long-awaited market upswing.
According to CNN, home prices are expected to rise by one percent across the nation in 2013—though Western locales such as Los Angeles are likely to see an even bigger increase. While that’s certainly a modest gain, it does suggest home prices have hit bottom and there are good deals to be had whether you are a buyer or seller.
To give you an idea on the expected increase in home-sale activity moving forward, the Mortgage Bankers Association projects new home loans are expected to jump by 55 percent (based in dollars) in 2013. That means there are plenty of people expected to jump back into the housing market.
If you are looking to take advantage of this increasing demand, CNN suggests two key elements for sellers to focus on. These include properly pricing your home and focusing on the appraisal.
As an example of properly pricing your home, CNN point out in San Francisco, one of the nation’s hottest seller’s markets, only properly priced homes are receiving multiple offers. That’s because buyers aren’t necessarily getting into bidding wars. The average home in San Francisco is selling for 103 percent of listing price, not the 120 percent level that was previously seen.
CNN suggests when having your home appraised that you always have your agent on hand. Appraisers should also be given an information package prepared by your agent that includes any upgrades or renovations to the home.
The main thing pointed out for buyers in the article was to be ready to make an offer if you’re looking for a home. One agent told CNN your first offer should be very close to your best offer. The only change in that would be if the house has been on the market for at least three months. Then you could be a little more aggressive with your offer.