By Sara Huebener
Inventory in West Savage has begun a slow upward crawl, up two listings from last month’s inventory, as those getting a head start on the spring market seek to take advantage of the narrow window of opportunity afforded to existing homeowners. (Those who have lived in their home at least five years and purchase a new primary residence with a binding Purchase Agreement secured by April 30, 2010 are eligible for a $6500 tax credit.)
Sales for the past 45 days hover at zero, but do not let this number discourage you. The holidays and frigid temperatures stalled activity for a time, but that will not likely hold for long. The highly-reduced level of foreclosures in our West Savage marketplace compared to 2008 and early 2009 is leaving sellers feel like they can perhaps hold their heads above water in the marketplace. And the $6,500 tax credit is just an added boost.
Prospective sellers in our current market should eliminate pricey updates to their home in preparation for selling. The dollar return will not be there. Instead, they should focus on inexpensive updates that go a long way. Replace brass fixtures for brushed nickel or oil-rubbed bronze, or swap out linoleum for tile. The money spent on granite countertops or finishing a basement in this market will not be soon recouped. Those planning on staying in their homes and wishing to add expensive updates should do so, and enjoy them to the fullest.
What to watch for: Watch the effect of the new regulation requiring lenders to “freeze” most of the costs disclosed to buyers in the Good Faith Estimate (GFE). A few costs can be modified within 10% of the amount stated on the GFE. Some unanticipated cost overages will have to be “eaten” by the lender. Expect some confusion and uncertainty in explanations of these documents, as well as possible delayed closings, as lenders and title companies work to sort out these new requirements. More about this will follow in time….
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