Monthly Archives: July 2012
From time to time, people ask us, “How’s business?”
If you look around and ask various Agents throughout the Birmingham area how their business is going, you’re likely to get varied answers. One Agent we spoke with recently has struggled much of the year. Other Agents we know have been doing much better. Colleen and I have had an extremely busy year, for which we’re grateful.
The fact is that—regardless of the economy in general and what’s reported in the news media—homes still sell. That’s because people’s lives change. New jobs, a change in family size or wanting to be closer to a particular area can be among the reasons.
I’ve heard people thinking of selling their home say, “I’ll wait until the economy improves.” To be sure, values are still down considerably, compared to previous years.
But that can also be like saying, “I’m going to buy a new car when the models get better.”
Here in the Birmingham and Shelby Co. area, the number of homes for sale in many communities is down considerably, compared to previous months. In Shelby County’s Alabaster and vicinity, the Birmingham MLS shows 220 homes for sale at present. This continues to be among the lowest numbers we’ve seen.
This drop in inventory is having an effect. Homes for sale that we consider excellent deals don’t stay on the market long. Buyers are out there, and pounce as soon as the excellent deals appear.
I’ve heard some home owners trying to sell without luck lamenting the lack of Buyers. It’s really not that Buyers are scarce. It’s just that they’re finding better deals elsewhere; the homes they wind up buying are in nicer condition, have more features, or are priced more attractively (or maybe all three).
A home needs to have pizazz to sell in the current market, and must be priced to grab a Buyer’s attention.
Homes lacking these attributes typically take much longer to sell (we’ve seen homes remain on market over a year before getting an Offer).
When it comes to getting your home sold, there are definitely success stories in the Birmingham area. Colleen and I recently listed a home in Alabaster that got two Offers and went Under Contract 13 days after going on the market. The Seller was motivated, priced his home so that Buyers had to notice, and has done a lot of fixing up to make his home look nice. The payoff to his work is that his home is set to sell, so he can move.
The drop in inventory being seen in some areas around Birmingham is starting to put a bit of a squeeze on Buyers. The Buyer who sees a really good deal on a home for sale in this area now realizes that there’s a chance to be taken by waiting: Someone else might swoop in and grab the home in the meantime.
If you’re looking to buy a home in the area, our advice is to think about what’s important in a home to you, as well as area, and to contact us (205-356-5412). If you’re planning to get a loan, another critical step to take early in the process is to get in touch with a Lender. Here is a link to some area Lenders we recommend contacting.
Remember that the world of home mortgages can be confusing, because there are so many different kinds of loans and differences in fees, down payments and other charges. A good Lender will be able to sort this out for you to help to simplify your decision.
Getting quotes from other Lenders to compare is a good idea, too; just be sure to understand that comparing different loans effectively means looking at all the overall costs, and not just a single fee that might be higher with one loan. You might also ask about “locking” in your interest rate (which involves being assured of getting the same rate if you wind up buying a little later).
By following these steps, you’ll be on the road to being part of the home sales success stories we’re seeing throughout much of the Shelby Co. and Birmingham area.