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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.
---This work is protected under copyright and may not be
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