Terry then considered the fine art of ideally pricing a home. Since 60 percent of homes sell for less than the asking price, Terry argued that the right listing can lead to interested buyers paying above that asking price. The trick rests with finding that right amount; ask too much and people will wonder why a house has been on the market for so long; ask too little and you get lots of offers which doesn’t help the seller. Terry added most overpricing dilemmas come from a combination of envy (the neighbor’s house sold for more, so why shouldn’t mine?) and emotional attachment to their own property (mine is better, so why aren’t the offers rolling in?). (0130)

A new rule states that a buyer making an offer can request confirmation from the seller’s broker that the seller has actually seen the offer. Terry confirmed that that can be done only if the offer was done in writing and if it has, the listing agent must then provide written documentation to the cooperating broker stating that the offer has indeed been submitted to the seller. This rule allows a buyer to know where they stand on the offer and to prepare for the consequences. (0116)

In closing, Terry says the first offer is usually the best offer.  If the home is priced right, especially in this softening housing market, motivated buyers will pay fair price, barring the few who come in with ridiculous low-ball offers. (019)

In its last meeting of the year, the Federal Reserve bumped up interest rates and projected two more rate hikes in 2019.  Slightly higher interest rates and talk of a slowing economy could make mortgages less affordable and increase the financial burden on those who qualify. (012)

Steve notes that for the 2018 housing market, mortgage rates were near historic lows.  In the early 2000s, mortgage rates were close to 8%.  Now they are under 5%.  While lower rates help, higher home prices bite into affordability. (1226)

Changing gears, Steve refers to a Business Insider article about a Palm Beach real estate agent who is surprised by her multimillionaire clients’ requests to downsize their homes. (1219)

Terry considered some of the ongoing partial government shutdown’s effects on real estate, noting that while flood insurance presented no concern, loans with the Federal Housing Administration (FHA) would be affected due to employee furloughs at the Department of Housing and Urban Development (HUD). HUD contingency plans would allow for the endorsement of new FHA loans, but slowdowns should be expected so extensions may be needed. (0123)

As 2018 draws to a close, Real Estate Round-Up looks at the 2019 housing forecast, the outlook for mortgage rates, and millennial home buying, and answers a listener’s question on what to do with a real estate inheritance. (1212)

To keep mortgage expenses down, consider buying a fixer-upper home.  But don’t do so blindly.

First, figure out what the home needs to be habitable, safe, and comfortable.  Examine the home’s structural needs.  For instance, does it need new plumbing, a new roof, or other must-haves?  In addition, look at cosmetic changes such as a new paint job, new appliances, a new kitchen, etc.  207

While home sales are flattening, Terry notes that sales of homes priced at or above $1 million have risen by 400,000 across the U.S., to a total of about three million nationally.  This represents close to 4% of the overall market. (1121)