We have now pretty much entered the spring selling season full tilt and the Upper Valley real estate market seems to be very active. The first quarter of 2008 was, in fact, so much better than the fourth quarter of 2007, that it seemed like a return to the old days. Lots of properties were on the market and there were also lots of well-informed buyers out there to buy them. Rates remained low then and are still low today. So a lot of positive results in the first quarter of what many feared would be a very slow year and the trend has continued into the second quarter.

On the other side of the coin, days on the market is up slightly, sale prices are down, but not dramatically so, and as we enter the warmer months, loads of properties are being offered for sale. The increased inventory is good for the buyers, giving them more choices and potentially driving prices down some, which is, of course, not so good for the sellers. The other problem area is getting mortgage financing. Lenders, the ones who are still in business, are a lot pickier than in the past and loan applications that require a little creativity or outside-the-box thinking are having a rough go of it. All the lenders want the borrower, in their parlance, to have "a little skin" in the game; meaning no more 100% loans, credit scores have to be higher than in the past, and the really good rates are reserved for the very most qualified borrowers.

So, what to do?

Buyers - get yourself some representation from an experienced agent, who will help you sort through all of the property choices and navigate the purchase and sale process. At the same time, be sure you have no credit problems and get pre-qualified by your lender with a letter to that effect accompanying your offer.

Sellers - Even though you may not want to hear it - listen to your broker, if you have one. If you don't have one, find an experienced agent who will help you put together a strategy to get your property sold for the very top dollar that can be gotten. The days of set the price high and prepare for a lot of negotiation are over. The buyers have too many choices now and will just move on if your price is way off the market. Set your price within 5% of what you are willing to accept and stick firmly to it. You will sell faster and, in the end, get a better price.

Good luck out there!