It’s a market full of hard decisions and sometimes tough love is necessary, especially when examining your home’s value compared to last year. Last weekend when one of our listings sold the seller said to me "that’s the most excited I’ve heard you get." The deal was done, so why not share in our client’s excitement? We’ve certainly had plenty of reasons not to be excited as we have had to sell and resell a number of properties several times over. Perhaps it’s just that I’m not the cheerleader type. 
Why (you might ask) have we had to sell a number of properties multiple times? Its ususally that we haven’t found the right buyer, or found out later that the buyer or the other agent weren’t honest with us, or there was a legitimate problem with the property. In any case conditions weren’t removed and the property goes back on the market.
Another challege is the length of negotiations – compared to the compressed negotiating times of ’06 and ’07 (which seems light years away) negotiations are now uncompressed taking days or longer, depending on the location of the parties.
I really do feel for the do it your selfer now, but find myself oftern referring the unrealistic or unreasonable sellers to a certain private sale site suggesting that they are a perfect match );
I know its not my quote but its so true, “Don’t sweat the small stuff”. This is definitely a negotiator’s market, and if you get overly excited you are in for a rude awakening when and if the buyer comes back to you to renegotiate. Nobody sums it up better then Kenny Rogers, - You got to know when to hold them, know when to fold them and know when to walk away”
Are you guys finding it more difficult to sell right now with all the inventory than in the pre-boom years? (2004 etc. )
Or has it just returned to the standard negotiations where buyers don’t have to go through a bidding war for every home they’re interested in?
Interest rates heading up, might light some fires under the butts of both buyers and sellers.
http://www.reportonbusiness.com/servlet/story/RTGAM.20080612.wbcmortgage0612/BNStory/Business/home?cid=al_gam_mostview
***The answer to your question Nate is No. I am not finding it difficult. Some sellers might be but you analogy to pre boom years in 2004 are right on except the abnormally high inventory. If certain factors change then it might become more diffucult. Overall it feels pretty normal.
As for the rate increase. My expectation is as per other markets we will see a slight, I repeat slight surge in sale as people take advantage of their rate holds and then a trough in sales as the buyers who moved their decisions ahead aren’t included in upcoming sales numbers.
What would you experts recommend to use when purchasing a rental property, a conventional morgage or a HELOC? (home equity line of credit) Our principal residence is paid off and we have enough of a HELOC on it to cover the rental property after we put down a sizable cash down payment. We just are not sure whether its wiser to use the HELOC or get a morgage? Input?
***My expert advise is go get an expert to give you advice based on your financial and investment goals, your credit options and the property.
Sheldons
Anne,
I am certainly no expert and agree with Sheldon’s advice to talk to your financial advisors.
One thought, however: Why would you want to tie the fate of a rental property to your primary residence?
Is it that your HELOC allows you interest-only payments, while a mortgage immediately requires repayment of principle?
In that case, your projected rent is too low, or the property is too expensive for your purpose.
Talk to a tax expert as well. While you can deduct interest you pay to finance the rental property, having this mixed in with personal use of your HELOC might make things messy when you file your taxes.
It makes it tougher when you have to sell the properties multiple times.
It makes it tougher when you have to sell the properties multiple times.