Editorial

Front Page - Friday, March 12, 2010

Real Estate Facts

Making it at the top

Elwynn Schwartz

You may be hearing that things are improving in the residential real estate market, and while that is true, not every area is experiencing the euphoria yet.
Even where sales are making gains, it often still depends on the ranges of listing prices – bargain foreclosures, mid-range homes, or high-end properties.
My last two columns addressed the approaches that buyers and sellers should take when the transaction involves homes in the first two categories, but luxury listings are a different story. Between the economy and the credit crunch, this top 10 percent of listings is suffering, largely because lenders aren’t committing to financing such large loans.
As high-end prices will probably still drop, buyers who do qualify for financing have more power in negotiating these sales. However, seek loan pre-approval before you make any offers. Jumbo loans require larger downpayments at slightly higher rates, and qualification takes time.
As the seller of a luxury home, you may have to bite the bullet and undercut your competition, if you’re truly committed to making a sale.
Use your agent’s Com-petitive Market Analysis to make your pricing decision, and if you can, offer to finance the deal yourself.
The painful truth in this high-end market is that recovery will take longer, so you shouldn’t hesitate to set a lower price and offer other concessions to make your sale happen.
Elwynn Schwartz is the owner of Chattanooga Real Estate Consultants and may be reached at 423-894-3050.

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