Fritz Pfister

Another week, in a most unusual year, continues to challenge the folks of central Illinois.

Another round of gully washing storms. A new record high price for oil. Distressing news on the viability of the housing markets two biggest mortgage financiers, Freddie Mac, and Fannie Mae.

A governor determined to move jobs out of Springfield. A state budget becoming a political football for Blagojevich, and Madigan. The people suffer as the mighty fight for political advantage. Had a friend say he believes Blagojevich is guilty of committing economic terrorism upon Springfield. Can’t say I would disagree.

All in all, not a bad week by 2008 standards!

In the face of these challenges the local housing market keeps chugging along. Yes the number of home sales has slowed significantly from the past four years however more homes are selling in 2008 than than the years preceding the boom. This could be a housing market considered good by historical comparison.

What exacerbates the perception that this is a bad housing market is the number of homes for sale. 1980 homes available for sale with Realtors today is a record for this date. Hundreds more than we would typically see. The problem is you can’t drive anywhere without noticing for sale signs. It is understandable the negative public perception.

If you would look at the whole picture, you would see that opportunity abounds in the market for home buyers. It may not seem to make sense, however the best time to make a move up is in a buyers market.

Here’s the proof. Say your $100,000 home has to be priced at $95,000 to get offers due to the 535 competing homes listed between $75,000 and $125,000. This results in selling for $90,000. OK, you didn’t sell for the $100,000 you would have sold for in a seller’s market. A ten thousand dollar difference.

Let’s say there’s a $175,000 home you want to buy. In a seller’s market you would pay $175,000 or more. However the family that must sell their $175,000 home today faces competition from 289 other home sellers priced $150,000 to $200,000. You end up buying that $175,000 home in a seller’s market for $160,000 in a buyer’s market. This gets you the home you’ve wanted and believe it or not, you’re thousands of dollars better off than waiting for the next seller’s market!

Of course the challenge is getting your home sold. Sale contingent offers are a terrible course of action in a buyers market, so nix the sale contingent option. A sale contingent offer will negate any savings, because the seller will demand a higher price than from a non-sale contingent buyer.

Buying before you sell places you at great financial risk, and at the mercy of the market. You will have no idea what price the home will sell for, and no idea how long it will take. How long do you want to risk two house payments? Two utility payments? Two property tax payments? Two insurance payments? Although the buying before selling option is better than the sale contingent option, it is fraught with risk.

The best option is to sell then buy. No double payments with this option. No guessing how long it will take to sell and at what price.

Get your home in better condition than your competition, price your home slightly under your competition, and hire a top notch real estate professional to market your home.

Today’s market is not bad, it is an opportunity for you to get the home you’ve dreamed of, and get that home at a great price. If you do it right.

Make it a Great week from Fritz and Kristie Pfister and The Pfister Success Team of RE/MAX Professionals. Helping families realize their dreams, and achieve their goals. Call 652-7653 to learn how you can become a winner in this most unusual housing market of 2008. Unusual to most, however not for us. This isn’t our first rodeo! Providing full time service with incomparable results since 1987.