It seems that almost every day for the last few weeks, the news about the chaos created by the sub prime market mess has been more and more despairing.

How bad is it? Well, thank goodness it isn’t as bad as in the 80’s when interest rates shot up to the mid to high teens; but, there is no question that getting the funds to purchase a home has gotten more difficult. Quickly receding are the days when a bank or Mortgage Company would lend 100%. Even 5% and 10% down loans are more difficult to qualify for and those that do qualify have to pay a premium interest rate. Let’s face it, the more risk or perceived risk that a lender sees the higher the interest rate will be and the more stringent underwriting criteria the purchaser will have to meet.

SELLERS: If you are a home seller, you will find that the pool of qualified buyers is shrinking because buyers may now qualify for less than they qualified for just a few short months ago. To the seller who has been digging in his or her heels regarding the asking price of their home, it’s time for a reality check. Do you want to be stubborn about what you think your house is "worth" or do you actually want to sell it? Don’t get caught up in that madness and pay the price of having to settle for a whole lot less when months go by with no offers and desperation sets in. And, if you’re a For Sale By Owner seller, don’t underestimate how buyers are going to lowball you even more than buyers have in the past.

BUYERS: If you are a home buyer, it’s time to fish or cut bait. Don’t make the mistake of thinking that the buyer’s market is going to favor you interminably. It’s true that buyers do somewhat have the upper hand when it comes time to negotiate price and terms, but, if you’re playing the waiting game, hoping that the asking price of the home or homes you’re looking at will drop more, you risk losing your gains by quite possibly having to pay a higher interest rate and larger down payment by the time you get off the fence. In other words, don’t try to time the market. It’s much too volatile to take that risk.