How to Sell a Home in a Declining Market! Ken Courtade, Keller Williams, Arlington

Dealing with an Adjusting/Declining Market

If your geographical area is now considered or perceived as a declining market, you must consider this in your home sale pricing strategy. You must have a STRATEGY (this is where your expert Realtor comes in) to effectively and efficiently win - or to win at all usually! If your market is adjusting, or some might call it declining, here are a few important steps that you can take to not become a "victim" of downward price pull.

1. Don't "Test the Market"

This is a mondo (big) misstep. Many sellers wrongly think that the initial activity on their property will continue throughout the entire listing period. Note true. When you first list your property, there is pent-up demand among current buyers in the marketplace who haven't found the home that fits their requirements. Once this initial surge of possible interest dwindles, showings will decrease to only NEW buyers coming into the marketplace. And this might be a small number, especially considering your seasonal timing. Missing this initial out the door period which generally is a maximum - and often less - of the first 21 days your property is listed, OFTEN results in longer market time (DOM - Days on Market) and a SUBSTANTIALLY lower price. Do not make this  COSTLY mistake.

2. Price your home BELOW the comparable sales for a given period

List your home property slightly below comparable sales (Also not at what the current listing prices of active listings are - these are not comparable "SALES" because they have not sold yet.). Today's comparable sales represent what the prices were for whatever period you have considered them within - IN THE PAST.  Because you can only pull sales for actual sales - which are always in the past.  Keep in mind also that a sale price is set at the contract ratification date - NOT the date it settles/sells.  Some adjustments may have occurred, but many homes sell for the original contracted price. The settlement date can be a month to many months later than the date that the buyer and seller agreed on a price! In a market that is adjusting downward and is not static, the homes sold could already be valued at a lower price based on market value when the next comparable homes sell - hopefully yours. 

So, simply stated, if the market is adjusting/declining, then your property is actually worth less than what comparable home sales have acquired. So, have your Realtor determine your market's average percentage adjustment and build it into your list price. 

3. When you consider a needed price reduction, reduce to win the game - remember the competition next door

When property values are declining and you are mistakenly above the current market value, reducing your home sales price to current market value is not going to "cut" it (HA). You need to be slightly below market value to actually engage a buyer to purchase your home NOW. Beat out the competition before it beats you out and leaves you with no buyers.  Only so many buyers are in the game for a LIKE property at any given time.  You want to win those buyers over - over the neighbor's home offerring! 

So, price and play to win - - and you will - - - in this OR ANY market! Best to you in your home sale! Comment here if you are a home seller or Realtor - let's hear additional input and recommendations!! Thanks!!

Ken Courtade, Keller Williams, Arlington

703.981.4646

KenCourtade@gmail.com

www.KenCourtade.com