How much is my house worth?

Listing at the right price is one of the most important decisions to make when selling a home. I always tell clients that when they are selling their home, the bottomline is the the price. Be it a beautiful home or a fixer-upper, someone out there will be willing to buy your home....at the right price.

How can we figure out this "right" price?

The right price is not how much you bought your house for (the environmental and economic conditions may have changed from the time you bought to the time you plan to sell). The right price is certainly not how much it cost you to improve or upgrade (some upgrades usually do not add value). And, it is not the price you think it is worth because your home is special to you.

One rule of thumb I look at is price per square footage. In Guymon, this tops at around $100 per sq. ft. This means that the home is move in ready, updated and includes central heat and air and a garage. If the home needs an updated kitchen or a is in disrepair, the price per sq. footage can go as low as $30. If the home has unique features or is in a special location, the price may climb to $120 per sq. foot.

The "right" price is where supply and demand intersect in the marketplace. In a marketplace where there is not much supply of housing (i.e. Guymon), sellers can pretty much drive prices higher. In the past year, while the price of housing has declined all over the country, the price of housing in Guymon has been slightly increasing. This is because there is not enough stock available. Conversely, there is still much demand for housing as the population continues to grow and workers coming in to the community decide to stay.

The best way to determine the "right" price for your home is to look at how much comparable properties have sold in the past 12 months and how much comparable properties are being sold currently in the market. A knowledgeable real estate agent should be able to help you analyze comparable properties in the market.

Are there first-time homebuyers out there?

It is October and one can tell that the seasons are changing- with the erratic hot-cold weather and the changing color of the leaves. With this change in the season also comes the tail-end of the federal government's credit program for first time home buyers. The government offers up to $8,000 tax credit for first time home buyers but, this program will be good only for transactions that close on or before Nov. 30, 2009. That is exactly 40 days from today!

One would think that this credit would entice more first time home buyers. Let me tell you that while we have worked with some families who may qualify and who are actively looking, we have not seen an extraordinary amount of interest from first time home buyers here in the Oklahoma Panhandle.

I have searched the economic and real estate news to see what may be reasons for what seems to be little effect in our hometown. I have heard that the interest rates may have increased. But, looking at national mortgage rates, we are seeing still lower rates than a year ago (although there was a slight increase from 3 months ago). Another factor that has been named as culprit is the rising unemployment. There were reports of increased jobless rates in the past quarter and this may lead to unease and insecurity.

While I think that people may be acting cautiously right now because of fear or reality of job loss, I think there is just not enough information out there about this very attractive tax credit. There is no time to waste- please spread the word. We all know that shopping for a home and the process of actually closing on the transaction takes times. In fact, to avail of the tax credit, one probably needs to make an offer on a home tomorrow. Don't delay!

P.S. The feds are still thinking about the possibility of extending this credit. Stay tuned.