Tuesday, January 23, 2007

7 For '07 - 7 Selling tip's for selling a home in 2007

So the market has been in correction mode the second half of last year and I'm continually asked when the market will pick up. The market is self-correcting as is the high risk mortgage market. The market correction in Centre County will be more about a softening in price, longer days on market for sellers, and educated buyers having more power in negotiating than in the giant price swings into negative territory that other markets are experiencing at the moment.

1. Market timing - When should I put my house on the market?

There is no time like the present. The market is heading in the direction of increased activity and will build every month into June and July. If you can picture a bell curve with early July the zenith and January and December representing points at the bottom of the curve on either side of July, you have a visual. What this means to sellers is that to reach the maximum number of buyers they should have their home on the market by the end of April. Sellers must realize that there will be more competition at this time, so I counsel sellers to list just ahead of the peak season in hopes that your property will be "sale pending" just prior to the onslaught of properties coming into the market.

2. Pricing

This is always the most important factor when selling your home no matter what the market. Please remember this; the market establishes the price of your home. The economics of home buying/selling mirror that of the commodities market in that sellers come to market with pricing based on availabilty and demand for their product and buyers purchase offers are based on the same knowledge plus the intrinsic value they place on the home

3. Home Inspection

Bite the bullet and pay for a home inspection prior to listing your home. In a competitive market it may come down to the minor details and the easy negotiations to get a home sold. If the buyer has the inspection in hand when considering an offer, it could save valuable time in the negotiation process and eliminate needless delays after a purchase offer is accepted.

4. Offer a Home warranty

When a buyer has narrowed the selection to one or two homes it may be something small like providing a one year home warranty to push the buyer to write on offer on your home and not the one down the street.

5. Prepaids

Be willing to offer buyers assistance with closing costs, inpsections, and interest rate buydowns. Maybe you will prepay the first years real estate taxes and insurance. Don't be afraid to tell them in the marketing material that you are offering items that your competition may not. Remember, you are competing with a limited number of savvy buyers that are aware of market conditions.

6. Negotiate
Sellers that have a serious interest in actually selling their home must be willing to engage buyers when they present an offer. I have been on both sides of the negotiation process when a seller reacts with disdain when presented with an offer that they consider to be insulting. If you simply bury your emotion and engage the potential buyers in a negotiation process, you may be surprised with the ultimate result. If you react like a teenager and refuse to respond, it will be the sellers loss. Remeber, almost 80% of the first offers are the best offers so at least take the time to counter-offer no matter how upset you may be with the initial offer. This is a business transaction. Remove the emotion and treat it as such.

7. Stay another year
If there is no urgent need to sell you may want to stay another year as the market bottoms out and completes the correction. What are your motives for moving? Do you want to trade up to a larger home? Are you empty nesters? You may find a more friendly market next year than you do at the moment. If selling this season is a luxury more than a necessity, you may want to re-think your strategy.
The trick is to get a great realtor, price the property well, and eliminate in advance as many potential problems as you can without spending a fortune.
For help in selling your home feel free to give me a call directly at 280-0054.

1 comment:

workhard said...

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