We continue our discussion about the seven influences of a sale; today we’re going to talk about timing. Thank you so much for tuning in to the Real Estate Today podcast.
I’m Bob Nelson, a real estate investment broker with Pacwest Real Estate Investments. And, I’m Marcia Edwards, residential broker with Windermere Real Estate.
Marcia Edwards: Let’s talk a little more about the influences on a sale. As we look at the market, it will not always be what it is today, and not what it was yesterday. So looking forward, how can you be successful in a sale? There are seven influences that really have the greatest impact on your sales price and the timing of your sale. And one of those is precisely timing, when you put the property on the market.
Bob Nelson: Well, in certain areas, that is particularly important. As far as income property is concerned, everybody in their right mind is looking for a great income property, where they don’t have to go to work 12 hours a day, because the property is generating enough income to support their lifestyle. That’s a great way to look at it.
Marcia Edwards: And that is not always available.
Bob Nelson: It’s not always available. If you bring a property out at the right time, with a financing package that is pre-approved, it goes away fairly quickly, assuming pricing is correct.
Marcia Edwards: That’s right. The other influences we talked a little bit about was location, pricing terms or financeability, marketing condition, and expertise. And what you’re saying is, the timing is always good if you’ve got the expertise to get it in the condition and have financing available, or a package that helps people understand the income and cash flow?
Bob Nelson: Yes, and if you botch any of those up, you’re going to be penalized. That’s just the way it is.
Marcia Edwards: That’s right. So the influences are different in different directions. What you also mentioned was timing is influenced by location. Sometimes it’s very seasonal, real estate is. 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, and they don’t. In fact, more than 50% of the sales are to folks with no children in school.
Bob Nelson: Well, as that happens, there is no seasonality to that particular item. What else are we concerned with?
Marcia Edwards: Well, when you look at timing, you’re also looking at the terms, or the interest rate influence.
Bob Nelson: Right, because that interest rate is gonna impact substantially, what you’re qualified to borrow. Same amount of income, if the interest rate on your loan goes up, now I’m not saying once the loan’s in place it goes up, I’m just saying as the market changes, unfortunately your purchasing capacity changes.
Marcia Edwards: We’ll talk more on the influences of a great sale next program. I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: And I’m Bob Nelson, real estate investment broker with Pacwest Real Estate Investments.
Join Bob Nelson and Marcia Edwards Eugene, Oregon, real estate experts daily at 5:30 on KPNW for the “Real Estate Today ” radio show.