Many issues impact real estate sales. Bob Nelson, Eugene real estate investment broker, with Pacwest Real Estates Investments, and Marcia Edwards, Eugene residential broker with Windermere Real Estate, break down the reasons why properties sell. They look at timing in part 5 of this series.
As you anticipate selling, what you do to be successful in a sale? There are seven influences that have the greatest impact on your sales success: location, timing, pricing and positioning, the terms in financing, the marketing exposure, the condition of the property, and the expertise in the transaction.
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Get the Timing Right
Let’s examine timing—when you put the property on the market. In certain areas, this is particularly important. Real estate can be seasonal. For example, Chicago shows a market that is robust seasonally just by logistics, because of the weather. Our area is not quite as sensitive to timing. People think that kids have to be out of school for residential real estate, but they don’t. In fact, more than 50 percent of sales are to folks with no children in school.
When you look at timing, you’re also looking at the terms, or the interest rate influence.
Bob Nelson, Eugene Commercial Real Estate Investment Broker:
Interest rate makes a substantial impact on what you’re qualified to borrow. When interest rates go up, your purchasing capacity changes, despite your income remaining the same.
Also, consider that pricing terms, financing, marketing condition, and expertise have an impact on timing. If you have the expertise to get a property in the right condition and have financing available, or a package that helps people understand the income and cash flow, then that can minimize the influence of timing. In other words, the timing can be right at any time.
How Timing Impacts the Sale of Your Property is from Bob Nelson and Marcia Edwards “Real Estate Today ” Eugene, Oregon, radio show, which airs at 5:30 daily on KPNW.