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Copyright © 2006 by
Bob Schwartz
San Diego
real estate broker
Certified
Residential Specialist
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KEYS
TO SUCCESS IN SELLING YOUR HOME IN A BUYER’S MARKET
By Bob Schwartz, CRS, GRI, San Diego real estate broker
In previous years, the home down the block sold for over the asking price and it
even sold in only 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 amount 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.
In terms of home value, prices in California and San Diego in particular have
declined by as much as 30% in some local communities. Since 2005, many sellers
are experiencing long delays in marketing their homes.
A seller must give careful consideration to properly pricing the home before
placing a home on the market, as well as the improvements and the home site.
Most importantly, one must consider the current market conditions. Whatever your
neighbor may have sold their home for a couple of years ago has no relationship
to what the value of your home is in today's market. Your buyers won't really
care how much your improvements may have cost, how much you originally 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 reached a high} of $800 bought a
one ounce Krugerrand at that time and stashed 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 extensive loss when one takes into
account that during that time period you earned absolutely 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.
Sure, 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. Many real estate agents concur that 95% or more of
proper marketing of a residential property is established 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 establish 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.
As a result, sellers must 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 efficiently market
your property.
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