Buyer Activity Picks Up on Maryland’s Eastern Shore

Spring has returned to Maryland’s Eastern Shore and appears to be bringing prospective buyers to the local real estate market. Interest in homes located in the three closest counties east of the Chesapeake Bay Bridge spiked in the past 2 weeks as mass media reports of lower interest rates, stock market stabilization and tax incentives for first time home buyers raised confidence. Jimmy White, a realtor with Long and Foster on Kent Island believes the recent news is what prospective buyers have been waiting for.   “There is tremendous pent up demand among buyers who have been reluctant because of economic news,” said White.   “The fact is that there are many qualified buyers who are now feeling more comfortable going after their first home or a bigger home, or a waterfront or second home east of the Bay Bridge.  “Those buyers are finding a wide selection of homes offered, many at refreshed prices, ranging from the mid 200’s to multi-million dollar estates. There are a number of condo-town house communities with amenities like club houses, pools, tennis and walking paths.  Several, including Queens Landing and Oyster Cove, offer waterfronts with spectacular views and deeded slips. White says this type of unit is perfect as a weekend retreat and is an alternative to the two or three hour drive to Ocean City. “My wife and I had condos in Ocean City while our children were growing, up but when we became empty nesters that long drive and the crowds were not as much fun, that’s when we bought a waterfront in a golf course community.”

Within a short distance of the Bay Bridge there are several private communitys including Cove Creek Club, SouthWinds, Bennett Point and Prospect Bay, which is home to the Prospect Bay Country Club. Golf is also available at the semi private Atlantic Golf courses of Queenstown Harbor and the private club, Hunter’s Oak. The local towns of Stevensville, Chester, Queenstown and Grasonville comprise the Kent Island area which still has an island feel with many waterfront restaurants and cafes.  ”The Eastern Shore is a wonderful place to live or own investment property and with rates as low as they are, the selection as good as it is,  and the tax incentives now offered, it is a great time buy,”  said white adding, “and ya know, the sky is just a little bluer on this side of the Bridge.”

Okay, it’s a buyer’s market, does that mean we should wait to sell?

It is true, we are are now in a buyer’s market. The tide has been shifting for about three years now and buyers will have the upper hand for the foreseeable future. So if you are a first time buyer it is definitely time to jump in. Rates are currently low and you can get a second chance at homes and prices you may have passed on a few years ago. Do not try to wait for a bottom, you will most likely miss it. Remember those who bought in the last downturn in  the 1990’s? They have come out as the biggest winners. Become a homeowner as soon as you can, even if it means scaling back on that dream house. Get in the market, create equity and then trade up to the next home.

So what about selling in this downturn?

But what if you are thinking of selling your home, should you try to wait it out? Maybe, but it depends on your unique situation. If you bought at the top of the market 3-5 years ago and the only way to sell your house is to drop the price below what you owe and write a big check at settlement then you may want to look for other options. The first is to tough it out and stay in the house. It is only in the past ten years or so that homes became so speculative that buyers were buying and reselling in just a few years. The thought that a home is a long term investment seemed to slip away. The current market urges a return to the long term time horizon. But what if financially  the home is just too much for you or you must move for some other reason? Sellers in this scenario can ease the pain perhaps with a refinance to lower the payments. Another possibility is to turn the property into a rental with income to pay the mortgage until prices recover while taking a lesser priced rental or buying a much less expensive home. In this situation it is important to act before your available emergency fund is depleted and your credit rating is destroyed from missing payments.

A buyer’s market can be good for a seller.

What, how can that be? For sellers who are wanting to trade up to that dream house this market can be a great time make the move. If you have equity in your home sufficient to price it correctly it will sell. It may take a bit longer than it would have 5 years ago, but it will sell. Now let’s say that in this buyer friendly market the value of your home is down 20 percent. Keep in mind that so is the price of the more expensive dream house. That means that you are giving up fewer dollars to sell you home than you are saving to buy the more expensive one. To improve the trade-up scenario be prepared to sell your home before going after the dream home so that you can make a non contingent offer on the next home. A non contingent, settle as soon as possible offer puts you in the strongest possible position to get the price you want to pay. It may mean storing all your stuff and living with the inlaws for a while, but it will be worth it.

Are the winter months a good time to sell your home?

Many homeowners believe that winter is a terrible time to sell a house. The time leading up to Thanksgiving and ending at New Year’s day can be a terribly slow time for buyer interest and activity. Just too many distractions. But January and February can be a good time to have a well cared for properly priced home on the market. Typically there are fewer homes listed during this time meaning you will have fewer homes to compete with. The buyers who are looking at this time of year are generally serious prospects. They are out sloshing through inclement conditions and braving the cold.  They often are being transferred to the area for work, or have finally sold a home they have had on the market and must get into a new home. Often the buyer may have been searching all year and is simply ready to finally pull the trigger. These are the prospects you want to see your house, ready willing and able prospects. If your home is not listed they will not see it. Listing in January or February also gives you a little headstart on the rush of homes that normally hit the market in March and April. It provides your realtor time to get your marketing plan in action, to raise awareness of your home to other realtors through e-marketing, broker opens and lots of personal telling and personal selling. Once you have decided to sell your house and are trying to determine a good time to list it with a broker always remember,,, you can’t sell it if it’s not for sale.