By Rich Levin

This is the strangest Real Estate Market in recorded history. Buyers can make huge mistakes while at the same time there is tremendous opportunity for them. Sellers too can make huge mistakes while at the same time this year offers more opportunity than the past five.

The risk for Buyers is overpaying for a house. The market is active. For the first time in years houses in many areas are receiving multiple offers. That can lead a Buyer to overpay.  Buyers who overpaid in 2006 and 2007 are losing their houses to foreclosures and short sales or taking extraordinary personal losses.

At the same time mortgage interest rates are reaching new historic lows. During a brief moment last year when it looked like the economy was recovering interest rates quickly rose to over 4% and were on their way further up when the economic slowdown drove the rates back down. This was a clear indication that as soon as there is recovery we will not see these rates for the foreseeable future.

Regarding property values we believed we had seen the bottom of the market a couple of years ago and in fact we did. Prices dropped from the 2007 through 2010 and have remained relatively stable since. Residential, owner occupied single family homes are driven by supply and demand. There are not less people. The income and unemployment rates are remaining stable.

Residential rental property is seeing a boom in many areas. So, if you are in a position to invest and you are willing to deal with property condition and tenants; that is the place that investors with cash are putting their money.

Notice this does not say homeowner danger. If you are happy in your home and have no desire to move to another home, or the need or desire to move out of the area, your home is still your best investment. However, if you are selling and moving you are very likely to be disappointed with the value of your property. Homes are selling in record numbers.  However,. few Sellers are happy with the price they are receiving. The danger is in overpricing.

Buyers are very well informed about property values. The Internet offers a myriad of websites with information on sale prices and property values. The digital information is more accurate than ever. The days of finding an uninformed Buyer are over. That means that homes even marginally overpriced will receive few showings and no offers. When a property remains for sale for months it takes on a stigma among the Real Estate Agents and the buying public. It is called “Market Wear.”  This causes the property to sell for even less. Price your property right at the beginning. Be careful that your Real Estate Agent does not overprice just to make you feel good about them and hire them. You want an Agent who has done a thorough job of determining the most likely sale price.

At the same time if you are selling and buying you can feel somewhat better about the disappointing value of the home you are selling because you are likely to more than make up for it with your purchase. This is particularly true if you are moving up to a higher price range. In most areas the higher price range houses have declined in value proportionately more than the modest price ranges.

Not all Real Estate Agents or Lenders are created equal. This is a risky market. You want to find the Real Estate Agent who is smart, experienced and responds quickly to you. The market is busy for the best Real Estate professionals. So you want them to demonstrate that they will be responsive to you by returning your communications quickly.

You want to find and work with a lender who is responsive and has a thorough understanding of the increasing regulations that impact a Buyer’s ability to finance. Expect the process to be cumbersome and messy. The rules are changing regularly. Even the best lenders are continuously required to adhere new underwriting guidelines.

From our economy to our politics there is more opportunity and more disappointment than we have experienced in most people’s lifetime.  If you have the intestinal fortitude (guts) and desire to take advantage of a Real Estate market, that market is now.

Rich Levin is a National Real Estate Expert now living in Atlanta, Georgia. For information contact Rich at 585-244-2700 or rich@richlevin.com. Website: www.RichLevin.com