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Copyright © 2006 by Bob Schwartz San Diego real estate broker Certified Residential Specialist
Promotions Unlimited All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement. | | KEYS TO SUCCESS IN SELLING YOUR HOME IN A BUYER’S MARKETBy 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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