Even though it was only a few years ago, the days of the Honolulu real estate bubble now seem like a lifetime ago. Only a few short years ago houses were selling like hotcakes, and it was not unusual to see a bidding war break out during a Sunday open house. Sellers could name their own price, and buyers were stretching further and further to buy the home of their dreams.
How things have changed - these days it is the buyer who is in the driver's seat, and with so many unsold houses on the market prices in many markets have fallen sharply. In addition it is taking longer and longer for sellers to find a qualified buyer, putting additional stress on an already difficult housing market.
Fortunately there are some steps both sellers and buyers can take to navigate their way through these treacherous waters There is no doubt that buying or selling a home today is much more complicated, but by making the right moves you can end up on the winning end of a great deal.
Know What the Lender Knows- Know Your Credit Score It has never been more important for potential homebuyers to know where they stand in the lender's eyes. Banks and other mortgage lenders have been burned badly by the current mortgage crisis, and many of those lenders are taking extreme measures to ensure the creditworthiness of their borrowers. Many would be homebuyers are finding that their stellar credit scores do not necessarily guarantee a great interest rate - or even a mortgage.
This means it has never been more important for would be homebuyers to check their own credit scores before getting started. Knowing that credit score will help the buyer get the best loan at the lowest possible interest rate.
Pre-Approvals Matter in the Current Housing Market
Buyers who are able to provide proof of mortgage eligibility will definitely have an advantage in this market, particularly when it comes to suddenly hot foreclosure properties There are bargains to be had out there, but it is important for buyers to be prepared. While it is a buyer's market, keep in mind that lenders are understandably nervous. Providing proof of creditworthiness is one of the best ways to make the buying process go more smoothly.
Price Your Home to Sell in a Tough Honolulu Market
If you are planning to sell your home it is vital to set a realistic price- a price that is neither too low nor too high for the currently weak market to bear. When pricing your home it is important to keep in mind that home values have fallen dramatically in some markets Chances are your home is not worth what it once was, so set your asking price with an eye to the current market.
The good news for those planning to move up to a bigger home or downsize to a smaller one is that you may be able to get more home for your money when it is your turn to buy. The real estate crash has worked both ways- allowing buyers to get more for their money while at the same time forcing sellers to take a lower price for their properties
One of the most important steps would be sellers can take is to check the recent sales of similar properties in the neighborhood. The keyword here is "recent" ó home sales from a year ago, or even a few months ago, may no longer be valid. Comparing recent like sales and pricing your home accordingly is perhaps the best way to sell a home in this challenging real estate market.
