- When most sellers list their home for sale

The first thing they think about is how much will I get and that is usually followed by how soon will I get the money. It's certainly understandable that those two concerns are, most often, top of mind. After all, you're likely selling your home to buy another one or invest the money in something else.

But, if as a seller, you can get into the buyer's mindset, the sale of your home can come faster and for more money.

Understanding the way buyers think involves seeing things not from your perspective but from your potential buyer's mindset. It can sound easy but actually it's often harder to do than most sellers think. The psychology of buying is driven by emotional experiences, money, and timing. With that in mind, sellers can help create optimal circumstances that literally help walk the buyer through the process and completion of the sale of your home.

It starts with a feeling. When you meet someone for the first time, you form a first impression based on a feeling. That's exactly what happens when buyers set foot into your home. Work with an experienced agent to learn exactly what kind of impression your home is giving off. If it's a small home, make sure it's not overfilled and cluttered.

Pick up all the loose clutter that's floating around. Throw out old magazines. People like to see things that are streamlined or clean or fresh looking. There's nothing worse than walking into a place and seeing a stack of magazines all over the place or an unmade bed.

Go the extra step and take care of items that might have been overlooked for quite some time. Steam clean the carpets, the upholstery, the furniture, if that's what's needed. Have the windows cleaned, light fixtures cleaned. Make it feel clean when you walk in.

Go back to basics. You may love your turquoise carpet but do you really think buyers will? Getting inside the buyers mind will help you answer these questions. You can also pick up home décor magazines and see what appeals to the masses. You don't have to change everything in your home, but going back to basics in a few areas will help buyers see how your home can become their home.

As soon as buyers see a really loud red, orange or lemon-green color they automatically think about re-doing. That, of course, means the buyers are already beginning to calculate the amount of money they need to take off of the sale price in order to get the home in the condition they would like it.

If instead you stick with neutral colors such as painting the walls off-white, light beige or Navajo white, you have a better chance in preserving the sale price.

Repair anything that looks torn, worn or broken If you walked into a retail store and saw a garment that you liked but it was torn or missing buttons, chances are you'd search for another one or ask for a discount if that were the only one of its kind.

That's what buyers will do with your home when they spot torn screens, garage doors that don't open, or broken light fixtures that are hanging out of the wall. Buyers, if at first they don't get completely turned off and walk away from the sale, will first begin to think that there is more damage to the home than what they're able to see and then they start to calculate the cost of repairing those damages. But buyers often exaggerate the amount of money needed to fix the repairs.

In today's market people are looking desperately to find out what's wrong with a home so that they can lower the price.

In the buyers' minds, they come up with some kind of incredible price to fix repairs. In their mind, they go way overboard and eventually it affects the bottom line price for the seller.

Don't miss an opportunity to get the word out about your home being listed for sale. It only makes sense to let your neighbors know. By doing this your neighbors can sometimes become great facilitators and supporters of the sale.

Most people are visual buyers. If the home doesn't look clean, spotless, and repaired then the buyer thinks what's behind the walls, how much more money do I have to put into this home.

Remember understanding the psychology of the buyer's mindset can help you sell faster and for the price you really want.

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- What you should know about a buyers market

September 2008

More home buyers have a better chance now than at any other time in nearly a half decade to negotiate a home-buying deal that costs less and comes with some concessions thrown in.

In many locations, buyers will find a glut of new homes, more motivated sellers, foreclosures, auctions, short sales and other market conditions that can make it a really good time to buy.

That doesn't mean throw caution to the wind.

Here's how to begin to navigate today's housing market, step-by-step, and make a good deal without getting taken.

Begin with making a personal "right-time-to-buy" decision. If you stretch financially beyond your means to go after lower-priced homes, foreclosures or short sales, you could be setting yourself up for failure. Today's housing market is littered with home owners who borrowed more than they could afford.
On the other hand, if you wait for prices to fall further you could miss out on a good deal. No one knows when the market hits bottom until it begins a sustained upward turn and you can look back and actually see bottom.

Buy now because it's the right thing to do for you, because you need a roof over your head, because it's more affordable than renting and because you plan on sticking with the home long enough to make the deal pay off. Buy because homeownership is integral to your budget, your lifestyle and your goals.

Get to know the many facets of home buying.
You've got a lot to learn, but obtaining a broad base of knowledge about the home-buying process is a relatively easy task, requiring only your time and attention. You should sit down with your REALTOR® for the most effective guidance.

Next, get to know your local market or the market where you plan to buy, because that's where your action is.
Accept national news for what it is, a broad brush stroke of current events. You want housing news and information that really hits home. Get your housing market information from credible publications and broadcasts covering your local market.

Part of your homework should include learning the boundaries of your buyer's market. Your market can be designated by a ZIP code, a small neighborhood, a greater community or some larger region.

Whether it's a new home, resale property, foreclosure or short sale, learn the true value of any property you are considering. Uneducated buyers tend to low-ball sellers and ask for too many concessions. That can alienate the seller, especially those less motivated with top-value homes. Likewise, knowledge helps prevent you from spending too much.
Your Realtor is schooled in the history of local market trends and statistics. See comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses.

Check your credit. Your credit report is free from AnnualCreditReport.com, the only federally regulated source. You may have to pay a nominal fee for your credit score (a numerical scoring of your creditworthiness) depending upon your state law and other factors. But see both your score and your report. You may need to request corrections or adjust your credit habits to generate the best report and score -- before you start home loan shopping.

Get your cash in the pipeline. Get approved -- in writing -- for a mortgage. Use your newly gained knowledge to shop around -- a lot -- for a home loan. Shop online and off. Shop mortgage brokers, loan officers, credit unions and other lenders. Shop where you bank, shop where you don't. The key is exhaustive comparison shopping to get the most money at the cheapest rate

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- CT Local Housing Market Shows Surprising Strength

August 2008

Connecticut's housing market has lately shown small but perhaps significant signs of resiliency - even as the national housing market continues its long decline. Although new-home starts in the state continue to decline, they are doing at a slower pace than the national average, according to the July Connecticut Economic Digest, which reached that conclusions mostly based on housing permit statistics, median home sale prices and delinquency rates.

According to the state's Department of Economic & Community Development (DECD), the number of housing permits issued by municipalities across the state rose ten percent in June from the same month in 2007. June's total of 740 housing permits also represents nearly a 50-percent increase from the 493 permits that were issued in May.

June's housing-permit total was also the highest since May 2007, when 745 were issued.

However, year-to-date Connecticut building activity remains far behind the first half of 2007. Between January 1 and June 30 of this year, 2,687 housing permits were issued - almost 22 percent less than the 3,444 figure for the equivalent period in 2007.

For the month of June Manchester led all Connecticut municipalities with 141 permits issued. Milford was the second highest, with 106.

- Mortgage application volume drops 1.5%

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Applications drop as interest rate for traditional 30-year mortgage rises to 6.57%, just shy of year's high
WASHINGTON (AP) -- Mortgage application volume fell 1.5% during the week ended Aug. 8 as fixed interest rates hovered near annual highs, according to the Mortgage Bankers Association's weekly application survey.

The MBA's application index fell to 425.9 from 432.6 a week earlier, according to the trade group's survey.  Application volume declined as fixed interest rates rose. The average rate for traditional, 30-year fixed-rate mortgages rose to 6.57% during the week ended Aug. 8, just shy of the 2008 high of 6.59% set last month.
The average rate for 15-year fixed-rate mortgages, which are often a popular choice for refinancing a home, rose to 6.17% from 6.02%. It was the highest average interest rate for 15-year fixed-rate mortgages this year.
Refinance application volume fell 4.2 % during the week, while purchase volume was flat. Refinance applications accounted for 35.2% of all applications during the week.
The index peaked at 1,856.7 during the week ending May 30, 2003, at the height of the housing boom.
An index value of 100 is equal to the application volume on March 16, 1990, the first week the MBA tracked application volume. A reading of 425.9 means mortgage application activity is 4.259 times higher than it was when the MBA began tracking the data.
The survey provides a snapshot of mortgage lending activity among mortgage bankers, commercial banks and thrifts. It covers about 50% of all residential retail mortgage originations each week.

The average rate for one-year adjustable-rate mortgages declined slightly to 7.15% from 7.17%.

- Housing Market Shaky Not Plummeting

Housing Market Shaky Not Plummeting
Saturday, March 31, 2007

Two reports that contribute to the picture of the housing industry were released on Monday. After news from the subprime mortgage market, the quarterly delinquency report, and the accompanying reaction of the stock market the two most recent pieces of information were pretty much non-events and the stock market reacted enthusiastically. Two reports that contribute to the picture of the housing industry were released on Monday. After news from the subprime mortgage market, the quarterly delinquency report, and the accompanying reaction of the stock market the two most recent pieces of information were pretty much non-events and the stock market reacted enthusiastically. The National Association of Home Builders and Wells Fargo released their Housing Market Index (HMI) which measures the state of builder confidence in the construction market along several parameters; their perceptions of the current state of the market in terms of sales; their measure of buyer traffic at present, and their predictions for the market over the next six months. The HMI has been hammered in recent months, dropping to 39 (anything less than 50 on the index as a whole or any of its three component parts is considered negative) on revised figures for February which was originally given a score of 40. This month the overall index dropped another three points to 36. This is not terrific news, but is still up from the low of 30 the HMI hit in September. The three component indexes also declined in March after going up in February. Current single-family home sales and sales expectations over the next three months each declined three points to 37 and 50 compared to February's revised numbers and the index measuring current buyer traffic was down one point to 28. NAHB Chief Economist David Seiders said, "Builders are uncertain about the consequences of tightening mortgage lending standards for their home sales down the line, and some are already seeing effects of the subprime shakeout on current sales activity. The fundamentals of today's housing market still are relatively strong, including a favorable interest-rate structure, solid growth in employment and household income, lower energy prices and improving affordability in much of the single-family market - due in part to price cuts and non-price sales incentives offered by builders. NAHB continues to forecast modest improvements in home sales during the balance of 2007, although the problems in the mortgage market increase the degree of uncertainty surrounding our baseline (i.e., most probable) forecast." The second report, the official one coming out of the U.S. Census Department in conjunction with the Department of Housing and Urban Development, is the February count of new home construction including permits issued and homes started. The two were a mixed bag. Permits were issued in February for privately-owned housing units at a rate that was 2.5 percent below the revised rate for January; the annualized estimate is now 1,532,000 and 28.6 percent lower than the number of permits estimated in February 2006. However, this number is on a par with permits issued since September, 2006 after the figures for the previous six months took a precipitous drive from 2,1470,000 to 1,727. In other words, its not 2005 but it's not a disaster either. Housing starts totaled 1,525,000 units, up 9 percent from revised January figures but still 28.5 percent below figures for February 2006. Single family housing starts fared even better, rising 10.3 percent above January numbers. The figures from both studies indicate that the housing market is shaky but not plummeting to the bottom. We will, hopefully, see nothing worse than a few more months of data that goes up and down.

- For the investor

Rents On Increase In Much Of Area As People Delay Buying
By ROBIN STANSBURY, Courant Staff Writer
 
Strong growth in the apartment market last year is leading to rent increases throughout most of the Hartford region in 2007 - with hikes of as much as 8 percent. But just how much more you pay this year will depend on where you live. ADVERTISEMENT SPONSORED LINKS Landlords say demand - and occupancy rates - for apartment units is strongest in the West Hartford-Farmington Valley area, as well as the Wethersfield-Rocky Hill corridor. There, renters can expect to pay an average of 3 percent to 5 percent more this year, and in some of the best buildings with the best locations, as much as 8 percent. But demand in the Manchester area, and in the Norwich-New London area, has slowed in recent months, the landlords said, because of an increase in the number of apartments, as well as condominiums. As a result, monthly rents in those areas will, in most cases, stay flat this year, and in some cases owners are offering a month or two of free rent, or reduced security deposits, to attract new tenants. "Last year started out with a bang, but then those markets started softening in the later part of 2006 as more product came on line," said Marie Mazzotta, vice president of Konover Residential, which owns almost 3,000 apartment units in Connecticut. "I think New London and Norwich will have a resurgence in 2007, but I'm not sure about Manchester yet," she said. "I don't see that percolating." Overall, the apartment rental market has strengthened dramatically during the past 12 months because of a slowdown in the purchase of homes and because there has been little construction of apartment complexes in the area. Fewer home buyers has meant more renters, and more renters means that occupancy rates in mostparts of the area are increasing. "In the midst of the housing boom, people moved out of apartments and into houses because interest rates were low and they were able to afford it, and so the apartment market suffered," said Ron Van Winkle, a West Hartford economist. "Now, mortgage rates are rising, costs of houses have risen, so people are holding off on purchases and the apartment market is doing better again. " That is not always the case. The apartment market can mirror the home purchase market. At those times, when one slows, the other slows, as well. Or, in areas with strong population and job growth, a strong home purchase market and a strong apartment rental market can exist side by side. But in central Connecticut right now, the slowing market is benefiting apartments. "The apartment market here is a fairly stable market, without significant ups and downs," Van Winkle said. "It should remain that way for the next couple of years." That stability has led investors to see a lot of strength in the local multifamily market, making the purchase of apartment buildings a good bet for 2007, said housing expert Steve Witten, senior director at Marcus & Millichap Real Estate Investment Brokerage Co.'s National Multi-Housing Group in New Haven. "It's my honest feeling that the bulk of the apartment sales for 2007 in the state of Connecticut will take place in Hartford County," Witten said. "The perception of the Hartford market is extremely positive. This is a burgeoning or growing market where stability will lead to reasonable appreciation. When you have investors who perceive you have a strong market, that is a good thing." Witten said the Hartford area is seen as so positive because for many years the market was undervalued, and at the same time development from private investors is finally taking place in the capital city. "Hartford's time is coming, and people are looking to position themselves in a market where they see excellent growth and appreciation of value," he said. In his report on the 2006 Connecticut apartment market, Witten said sales of apartment buildings statewide remained healthy, with 5,617 individual apartment units traded in 2006, compared with 5,676 units in 2005. At the same time, average per-unit sales value increased, from $88,368 a unit in 2005 to $122,803 a unit in 2006, a jump of 39 percent. That does not mean the typical value of an apartment unit increased by 39 percent; it could reflect the sales of higher-priced complexes. For example, two upscale apartment complexes in Middletown with 518 units sold for $73.2 million, or about $141,000 a unit, in early 2006. And already this year, a newly built 180-unit complex in Meriden sold for $30.2 million, or about $168,000 a unit. In addition, The Hawthorne at Gillette Ridge, a 246-unit upscale complex on CIGNA's campus in Bloomfield, is now under contract. The sale price is expected to value units at more than $200,000 apiece. In downtown Hartford, hundreds of upscale apartment units have been built in several projects, including Northland Investment Corp.'s Hartford 21, a 36-story, 262-unit rental tower with full amenities at the site of the old Civic Center mall. It remains to be seen how that market shakes out, although Northland and other developers say their rental plans are on track. ADVERTISEMENT SPONSORED LINKS Brokers said one area of weakness is in the development of condominiums. Although the condominium market in the area is still strong - sales of condos in 2006 outpaced sales in 2005 by about 6 percent - demand in recent months has softened, leading some projects to be scrapped. In other cases, developers have said they will build apartment units instead of condos. In recent months, about a half-dozen plans to build condos have been canceled or changed. Among them: Plans to transform the former Capewell Horse Nail Co. factory in Hartford into moderately priced condominiums was scrapped after investors cited concerns about the strength of the marketplace and profit margins. Another project that would have turned the city-owned building at 101 Pearl St. into condominiums also collapsed after the developer encountered escalating costs. A developer's plan to take a 12-story, city-owned building just blocks from Hartford's Bushnell Park and turn it into a few dozen luxury condominiums has collapsed - a victim of the project's small size, high remediation costs and the rising cost of construction. And in West Hartford, plans to build a second complex of condominiums at Blue Back Square were changed to include apartments instead after rising construction costs caused some concern about the ability of the units to sell. "There is no question there was a softening of the condo market," said Van Winkle, the West Hartford economist. "Condos did well for most of 2006, but by the end of the summer, sales started to slow, and they fell precipitously by the end of the year. When the market slows down, it makes a lot of developers rethink their market until it picks up again. " As sales slowed, construction prices increased - a bad combination, the economists said. "A lot of projects planned at a certain dollar value weren't able to be built," Van Winkle said. "With rising costs and slowing demand, you don't have to be an economist to figure out why the projects were canceled. It will come back. I think the market will revive itself later in 2007."

- Home Prices down 7.6%

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Foreclosures are driving down prices in the last 12 months, with cities in the Sun Belt leading the decline. Real estate prices continued to post steep year-over-year declines during the three months ended June 30, according to a new report from the National Association of Realtors (NAR). Nationwide, the median single family, existing home price plunged 7.6% to $206,500 from $223,500 in the second quarter. The median

price is one in which half of all homes sold for more and half sold for less. A record numbers of foreclosures is helping to drive down prices, according to NAR. In fact, foreclosures and short sales accounted for about one third of all existing homes sales.

"In many areas with large concentrations of foreclosure sales, homes are being purchased below replacement cost values," said NAR president, Richard Gaylord. "Many buyers with long-term expectations are getting exceptional value in the current market."

Sun Belt metro areas led the decline. These areas ran up fabulous gains during the mid-2000s boom, but are experiencing even more severe declines during the bust.

In Sacramento, Calif. prices plunged 35.6% year-over-year to $$229,500. Cape Coral, Fla. recorded a loss of 33.1%, prices in Riverside, Calif. dropped 32.7%, and Los Angeles prices are down 29.6%. Las Vegas prices fell 23.6% and Phoenix was down 22.5% for the quarter.

More bargain hunting buyers are coming into the market, according to the Realtors. "The biggest home-sales gains over the previous quarter have been in some of the markets with the steepest and fastest price drops," said Lawrence Yun, NAR's chief economist. "Buyers in these areas are responding to deeply discounted home prices."

Existing-home sales increased 25.8 percent in California, 25.0 percent in Nevada, 20.5 percent in Arizona and 10.1 percent in Florida during the quarter.

The biggest regional home price declines have occurred in the West, where homes lost 17.4% of value to a median of $290,500. Prices in the South, at $177,000, were almost flat, down just 0.9%. The Northeast median home sold for $269,000, down 9.6%, and the Midwest came in at $161,500, down 4.1%.

Among metro areas, Yakima, Wash. posted the largest percentage increase. Prices there rose 8.9% year-over-year to $162,300. Binghamton, N.Y. was second with a price jump of 8.7% to $120,900.

Condo prices fell much less than single family homes, down just 3% year-over-year to $220,000 from $226,900. A couple of cities recorded double-digit condo price gains, led by Syracuse, N.Y., up 17.8% to $144,900, and New Orleans, up 15.9% to $192,100. Houston condos rose 9.9% to $141,100.