Getting Ready for the Spring Market

I have a number of calls recently from sellers who are still struggling with the fact that the marrket isn't what it was 2 years ago. I find myself giving them the same advice each time.

Step one - Determine a reasonable selling price

The first step is to get a CMA. An excellent agent will research the recent sales of comparable houses in your neighborhood to provide you with a market analysis (CMA) and also provide you with an impartial assessment of your property and how it compares to successfully sold properties similar to yours. Your Realtor should also help you understand what happened when houses that were listed didn't sell, and why. You can often learn as much from a history of the houses that didn't sell as from those that did.

Step Two - Objectively evaluate the condition of your home and make necessary changes

Take stock of the condition of your house, both its interior and exterior. The potential buyer's first impression of your house is the most important one, and you only get one chance to make it a good one. You hear a lot about "curb appeal", and it really is important because that's the point where first impressions are formed. So, fix what is broken and spruce up what is needed to emphasize the property's best attributes. If you aren't willing to fix it then be ready to set your price to reflect the repairs that are needed.


Step Three - Understand the marketing plan

When you interview Realtors to make a selection of someone to represent your property, be sure that you get a marketing plan that is specific to the needs of your specific home and neighborhood. Expect that the plan will have a time line that commits not only to what will be done, but also to when it will be done. Hold your Realtor accountable; get a commitment for periodic status reports or reviews of what is working in getting potential buyers through your house and what isn't. Above all, stay flexible on price and terms. In this transition market, the competition takes new forms all the time. You and your Realtor will have to be nimble to keep up with competition.

Just remember that, in this market, you and your Realtor really have to work at taking your property to prospective buyers. Buyers aren't just randomly going to walk into your house.

I think that most everyone would agree that the market is still in its correction phase. We don't all necessarily agree as to whether it's a true "Buyers Market" or not, but we all do agree that there are a lot more folks looking today than were looking a few months ago. Now our job as Realtors is to convert them into buyers.

This year, as the market correction runs its course, a more stable and predictable real estate market will emerge. It will be defined by a state in which your house, your neighbor's house, and other comparable properties are all listed and sold at prices within a few percentage points of each another. At this point, these conditions will again become the norm, not the exception. We will see a correspondence or equalization in what buyers expect and what sellers want.