KEYS TO SUCCESS IN SELLING YOUR HOME IN A BUYER’S MARKET
In previous years, the home down the block sold for over the asking price and it even sold in a couple days. before, that was then and this is now. California has entered into a buyer’s market. Buyers have more properties to choose from and properties are staying on the market for a longer period of time. In many cases, it can take up to two or three times longer to sell the average home than it did only a couple of years ago.
Home value prices in California and in San Diego in particular have declined by as much as 30% in some neighborhoods. Since 2005, many sellers are experiencing long delays in marketing their homes.
Before placing one's home on the market, a seller must give careful thought to properly pricing the home. They must also take into consideration the improvements and the location. Also, and most importantly, take into account the current 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 rush to sell immediately.
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 an 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 considerable loss when one takes into account that during that total period of time 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 established 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.
Of course your home improvements, upgrades, location, general upkeep and landscaping all account for the value of your home and its salability. The most important factor that still remains is what the current market for your location will pay for homes similar to yours. Most real estate agents concur that 95% or more of proper marketing of a residential property is determined by the initial proper pricing for the home.
In order to be successful and get top dollar for your property in a buyer’s market, a seller must first step back from the home. They must emotionally separate themselves from the property and determine what the market is willing to pay for the property. The best way to do this under the current market conditions is to team up with your local realtor, who will provide a no cost or obligation CMA. CMA stands for comparable market analysis which is an objective assessment of what you can expect to realistically get for your property under the current market conditions. Aside from seeing homes that have sold in the CMA, {{you will also see something just as important,}) how long homes were on the market, what homes expired unsold and/or were canceled during the listing. All these factors will come into play to properly determine 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. Consequently, sellers must never list their property for sale based only 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 competently market your property.
ABOUT THE AUTHOR Bob Schwartz, is a Certified Residential Specialist, and a CA licensed San Diego real estate broker with. Bob has over 27 years of residential real estate experience, authored a number of published articles and served as an expert witness for San Diego lawyers. You can contact Bob via his highly popular San Diego real estate website.
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