Intro written July 2011

We've seen some headway in the complextion of our local market - a small percentage of the overall inventory is distressed properties.  Traditional sellers have re-entered the market, understanding that recovery for the market is slow.  Several things are still working in favor of the sellers - prices are very attractive, interest rates have stayed at the lows that prompted much activity last year, and inventory is still under 'normal' market levels.  That said, buyers are fewer and far pickier. They expect to buy the best house on the block at distressed home prices.  So more than ever, pricing in step with the market is extremenly important.  As one pundent put it, "We're in a price war AND a beauty contest.    If you have been considering a move, here are some important things to consider.

What are your objectives? 

•·Do you have to move? 

•·Is keeping your home and renting it out something you'd consider? 

•·If you own the home with another person, are you united in your position about selling?

•·Are you ready to break your emotional ties to your home, your neighbor and your yard? 

Focusing on your long-term objective can help lessen the impact these other factors will have. Working through these possible scenarios will help you determine if you have the necessary motivation to move forward.  Having your home on the market will create some inconvenience as agents call for appointments.  Keeping your home guest-ready each day for visitors can also take its toll.   

Pricing is 90% of your marketing plan.  The best staging job, the snazziest flyers and a premier virtual tour won't overcome a property that is overpriced.  Some homeowners have a number in their mind that they want to realize out of the house - often tied to what they still owe, or what they want to buy.  And while important in considering your future buying power, what's more important is the fair market value and what a buyer will be willing to pay. 

•·Are you willing to price your home appropriately to attract attention and more importantly, an offer? 

•·Are you willing to make any necessary price reductions to get the home sold if showings and offers aren't forthcoming, or if competitive factors enter the equation?

What is your buy and move strategy?  If you need the proceeds from the sale of your existing home before you can purchase, you need to carefully consider the competitive factors in the market. 

•· Do you intend to find your replacement home first, and try for a contingent offer?  This strategy can work in some cases, but if the home you're looking to buy is in a market segment that is low in inventory, and high in demand, those sellers may not be open to a contingent offer if multiple offers will bring them a strong buyer now.  Understanding local market conditions will help position you for the most favorable outcome.

•· Will you put your house on the market and sell first?  This option has pluses and minuses too.  If you're successful in selling immediately, but haven't found a replacement home yet, are you willing to rent back from the new owner if they're willing?  Will you rent elsewhere in the interim? 

•· Or will you find a buyer willing to buy your home, contingent upon you finding a replacement?

•· Would renting in your new location make sense?  Especially if you are moving to an unfamiliar area, renting may be a very good option.  You can give yourself a chance to explore the neighborhoods, get a true picture of commute patterns and take more time in making choices. 

These questions and comments aren't meant to scare, but to prepare.  If after careful consideration, you've determined that a change of residence is right for you, then look for the next two installments of this 3 part series. We'll explore next steps:  Preparing your home for sale and Thinking Like a Buyer.