1. If you’re looking to sell your home, what should you do to get it ready for sale and place it on the market?

The first thing to do is consult a REALTOR®. They will know how to price your home and how to make it appealing to buyers. Statistics show that homes sold using a REALTOR® sell for 17% more than homes sold without.

2. If you are looking to buy a home, what are some of the important factors you should consider?

Location, price, personal financial and family situation Your REALTOR® can provide you with information about neighborhoods, school districts and realistic pricing because of their vast knowledge of the local community.

3. Aren’t REALTORS® just acting as cheerleaders for the marketplace?

We want buyers and sellers to know the facts about the market today and over the long term. Inaccurate stories in the media have turned many consumers sour to the idea of buying a home, and that’s a shame because now is a great time to buy. Prices have moderated and are not likely to go lower, interest rates are approaching 40-year lows and inventory is abundant.

4. Why should a seller use a traditional REALTOR® as opposed to a discounted broker or doing it themselves? Why pay all that commission?

Today’s sellers have more service options than ever, and that’s great! The majority continue to find that REALTOR® add a great deal of value, through their market savvy and by helping the seller navigate the myriad individual steps involved in selling a house. REALTORS® also must adhere to a code of ethics.

Loans/Subprime Mortgages

1. Hasn’t the subprime mortgage mess made it hard for people to get loans?

That’s a common misconception. Lenders are being more diligent about making sure the terms of a mortgage fit a buyer’s financial situation- and that’s a good thing for everyone- but they are still eager to finance home purchases. And with interest rates approaching 40-year lows, it’s a great time to buy a home.

2. How has the subprime mess impacted the local real estate market?

There have been increased foreclosures and vacancy rates nationwide, as well as in St. Charles County. But the research indicates that the impact is mainly in the past and we’ll see a return to normal conditions in 2008.

3. How should buyers choose a lender?

It’s important to warn against predatory “toxic” loans that can trap unsuspecting borrowers into years of financial hardship. Buyers should deal with reputable lenders and seek professional help from agencies like the Better Business Bureau to identify lenders of good standing.

4. What type of loan is best for consumers?

Homebuyers should shop for the mortgage that best suits their needs and their financial circumstances. A REALTOR® is uniquely positioned to inform and guide buyers through the maze of financial alternatives.

Market Conditions

1. With the real estate market in a state of free-fall, how can you still believe it’s a good time to buy a home?

Today’s conditions are ideal for buyers- prices have moderated, interest rates are approaching 40-year lows, and there are more homes for sale than have been in the past 15 years. Basically, home buyers have the opportunity to choose exactly the home they want at affordable lending terms.

2. Isn’t there a good chance prices will continue to drop further?

Research shows that prices have stabilized and price declines are likely over. NAR is actually predicting moderate price increases for 2008.

3. With prices down, why would a seller want to put their home on the market now?

The key is to consult with a professional to protect your investment and come up with a strategy to make your home as desirable to buyers as possible. Statistics show that homes sold using a REALTOR® sold for 17% more than homes sold without.

4. The real estate industry’s predictions have been overly optimistic over the past year or so. What makes you so sure the worst is over?

No one has a crystal ball. However, the industry has some of the best economic research out there, and numbers indicate prices have stabilized and will likely start to rise moderately next year.

5. What is the long-term forecast for the local market?

Homeownership has historically been an excellent long-term investment- providing both equity and tax benefits over time-and we see no change in that outlook. Given the leverage you get in purchasing a home, the average return on a 5% payment over 10 years is usually 3-5 times greater than stock market returns.