According to our Association of Realtors, who actually looks at trends around the country, we are seeing that in some areas of the country there is not enough of an inventory to meet the demand. In other words, the market is changing somewhat from a buyer’s market to a seller’s market.
Here in Berks we are not seeing that change at this point, however for properties that are priced right coming on the market (especially those in better than average condition), sales are becoming more rapid. The biggest challenge that we face revolves around sellers expecting to get a higher price for their home than what their home will appraise.
When sellers over price their home, even if they can find a buyer who is willing to pay the price, most buyers can’t get approved for a mortgage on those homes. No bank or mortgage company will approve loans for homes where the price that the buyer is willing to pay is greater than the appraised value. The home is the equity that backs up the loan. If banks did loan more money than what the value of the home is, there would be customers who would later decide to walk out on their loan and the bank would be stuck then with a property that does not have enough value to cover that loan. The bank would also have additional legal expenses and expenses to resell the property, which leads to even greater loss. Savvy sellers simply to do not price their home above what it can appraise for.
If you are unsure what your home is worth, or to see if now is the time to put your home up for sale, please call us at 610-779-2500 or 610-921-2400. You can even fill out our online form and we will prepare a FREE market analysis report for you showing the value of your home. You can access that form here.