If you have read recent headlines you would know one thing for sure, that credit right now is TIGHT. The financial markets have been rocked by investment fallout due to what analysts like to categorize as "sub-prime lending" in the real estate market. What had recently become America's new favorite investment is now turning into many Americans biggest nightmare.
The unfortunate truth of the matter is that sub-prime lending is only one part of this difficult story. It seems that a majority of qualified homeowners also took advantage of the "easy money" financing and refinancing days and are now finding themselves with zero equity or even worse upside down. It turns out that borrowing equity to remodel a kitchen, pay a college tuition, consolidate other debt, or worse by a second home, might not have been the best idea.
What does all of this mean for sellers in towns like Harvard? Back to basics really - location, price, and condition. Borrowers today see the market declining which means that they won't be able to refinance and borrow from their equity anytime soon. Therefore, basic affordability and condition is paramount. Where once a borrower could refinance to update a kitchen, a bath, or install a new furnace, they now need to use their own cash. Since utilizing credit/equity is no longer possible, pricing is everything. So buff up that 1970's Colonial and price it as best you can, and remember, top dollar days where a home sale could augment your retirement is now "so 2005".
