KEYS TO SUCCESS IN SELLING YOUR HOME IN A BUYER’S MARKET

Two years ago the home down the block sold for over the asking price. Plus, it sold in only a couple days. Unfortunately, that was two years ago. In today's market, buyers not only have more properties to select from, but those properties are also staying on the market for a longer time. In many cases, it is taking two to three times longer to sell the average home than it did only a couple years ago.

Home value prices in California and in San Diego in particular have declined by as much as 30% in some communities. Since 2005, many sellers are experiencing long delays in marketing their homes.

Before putting one's home on the market, a seller must give thorough consideration to properly pricing the home. They must also take into consideration the improvements and the location. Also, and most importantly, consider the present market conditions. The price your neighbor's home was sold for a couple of years ago has absolutely no relationship to the value of your home in today's market. Buyers aren't concerned with what your improvements cost, how much you paid for your home, or the fact that you're not in a hurry to sell right away.

Your home value is determined by current market home sales in your area within the last few months. About 20 years ago gold hit a peak ounce. Let’s say you bought a one ounce Krugerrand at that time and stored it away in a safe deposit box. Though you had kept the gold in extremely good condition, today, 20 years later, it would be worth around $670. That is a substantial loss when one takes into account that during that time period you earned relatively no interest on that money. Does anybody really care what you paid for that Kruggerrand or that you maintain it in excellent condition? No. All that buyers care about is what the market has determined the value of that Krugerrand is today! Another analogy would be the stock market. What you paid for your IBM shares last week has absolutely no relationship to what you can sell them for today.

Your home improvements, upgrades, location, general upkeep and landscaping do figure into the value of your home and its salability. However, the most significant factor still remains what the current market for your location is willing to pay for comparable homes. Most real estate agents will agree that initial accurate pricing for a home accounts for 95% or more of good marketing of a residential property.

To be successful, and to get top dollar for your property in a buyer’s market, sellers must first separate themselves from the home. It's important to emotionally detach themselves from the property in order to determine what the market is willing to pay for the property. Under the current market conditions the best way to do this is to join up with your local realtor, who will provide a no cost or obligation CMA or, comparable market analysis. This is an objective assessment of what you can expect to realistically get for your property under the current market conditions. Not only will you see homes that have sold in the CMA, but just as importantly, you'll see how long homes were on the market, what homes expired unsold and/or were canceled during the listing. All of these factors will come be important in properly determining the price for your property.

When interviewing agents/brokers, sellers must keep in mind that many less experienced agents (due to lack of experience or just wanting to please their client) will suggest a listing price that is unrealistic for the current market. As a result, sellers should never list their property for sale based solely on the recommended selling price of the property. It is imperative to consider agents by their experience, knowledge of the neighborhood, analysis of the market, and perhaps most importantly, their specific and detailed marketing plan for your property.

The key to success in today's buyers market is properly pricing your home from the outset and selecting an experienced, competent realtor to professionally market your property.
 

NOTE: The opinions expressed in this article are the author's own and do not necessarily reflect the opinions of this website or Brokerforyou/Promotions Unlimited.

Disclaimer:  The information provided in this article is general information on the legal issues presented and should not be regarded as a  substitute for individual legal advice from an attorney.

The above article is presented as a community service with the permission of the author.

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