Information for the Slower Markets!   

Prime Real Estate Selling Season almost all over.... (prime time as we have come to know it -- these days and time)

 We can't deny that half the year is over for 2007, and to date many markets are stalled - if not declined.  It has been a hard realization that 2004/2005 is gone and all we can do is hope that it comes back and come soon.  If not as good as it was then, come close to that.  But in the meantime..... we have to work with what we have.  The summer months are coming to a close but there is still time left this year for positive re-enforcement.  Prime time... is usually the spring and summer months in most areas.

Below are a few tips for both owners and agents.  These tips are things that we all probably already know but it never hurts to have reminders and taps on the shoulders. 

Here are few taps.

There are 3 major categories of owners:

1. You have the long-term owners: that can still realize their profit: selling in such a marketplace, appreciation from past years assures profitable sales.
2. You have the short-term owners: that will not realize the profit that they want from their home but still have solid equity to gain from.  Not as good as it would have been by in "the good years of 2004/2005" but yet there's still equity in their home.
3. You have the stressed out owners that are facing defaults, pre-foreclosures and foreclosure.  These owners have no equity to bail out with money in the pocket and some have no idea of what to do to walk away without adding to their loss, their shirts.

No matter what catagory of Owner you are: Make sure your home has the best chance for a top price and a quick sale. Understand the market and face up to what it is.  Then continue educating yourself on what you can do to keep looking forward in a positive manner and do what you can to improve your situation.

            Below are items that you should know and do - if you are not doing them, I believe that you should: 

The market is slow and there are relatively fewer buyers therefore the "FOR SALE" signs will stand longer on your property.  (Days on Market could average from 6-9 months in some areas).  The figures show 85% of the buyers rely on real estate agents while 80 percent reply on the Internet. 

Smart Move for you to Make: Get a local agent. Let an agent list and sell your home. Agents post real estate information to the Internet, most buyers will call an agent.  Also, local agents who actually make sales know the innards of recent transactions are thus are in the best position to provide negotiating advice.

It is a good idea to review your agent's marketing plan.  If they do not show you one, ask for it. The marketing plan developed by your agent should be reviewed as often as necessary to assure that; one, it is being followed and; two, it is changed as necessary.

Know and understand the marketplace. In terms of negotiation it's not good enough to know recorded sale prices because they frequently don't tell the whole story. For instance, two homes may both have recorded with the same sale prices, however, check to see what the incentives were that the seller gave to the buyer (because it is all of value and value = money). You know your property will sell at some price point, but rather than a given price it's best to think of a home as a package of price and terms.

Try this in place of that - when it comes to package price and terms- Tips for Owners:

             >>>> Help buyers off-set closing costs rather than to lowering the sale price. In many cases, the seller contribution may be smaller than a price reduction and much more attractive to buyers who need cash to close.          

*** Have context. It's silly to worry about small costs and concessions when your core goal is to sell the home.

           >>>> Lower deposit requirement rather than a higher deposit. If you're a seller you want the largest possible deposit, but in a slow market you may have to settle for less. Buyers, for their part, want to make the smallest possible deposit if only because a big deposit represents a huge psychological commitment -- and a financial one.

           >>>> Throw in stuff that you can leave behind- especially if the buyer likes it. In some cases it may be best to "reluctantly" part with such items if only a buyer will make an offer. Caution: Only do this "if" it is something the buyer agrees that they want!

You should know what you sign up for, know the terms, know the language of the contract that you will using. 

Smart Move for you to Make: Read the listing agreement and the sale agreement. Ask your agent for a copy of everything you sign and read it. Agents will be happy to give you a copy of the agreement in advance for you to read it and ask questions on items you do not understand, so when you get an offer, you actually understand what they are asking for.  When your agent is explaining - listen.  Virtually all jurisdictions have a standardized real estate contract which over the years have become lengthy and complex. If you use one then you're automatically agreeing to all unmodified terms and conditions, so read the entire agreement so you know what is being said.

** Make sure your potential buyers are Pre-Approved rather than Pre-qualified.  This will help weed out the serious buyers from those that are just shopping around.

Sellers and Agents - Put this on your "to do" list:

Sellers and Agents:  Visit open houses. It's always good to visit open houses or, as they're otherwise called, the competition. It's not easy to be objective, but is there something other owners are offering which might work for your property? Something you can make into a bargaining point? Maybe an offer to re-paint the living room in a color of the buyer's choice is not a bad idea.

Agents: Update MLS photos and Reductions or other important information to your listing. If it's August and your MLS photo shows a home with four feet of snow in the front yard then buyers can guess that the home has been for sale for a long, long time -- meaning the price and terms are, um, flexible. Perhaps more "flexible" than you would like. Have your broker post newer photos.

          As one of my sellers told me, you should see the trees in fall! I made note to take pictures of the trees in the fall to capture that beauty (in case the house is still on the market in the fall).