How Can I Sell My Home in the Current Market

By
Real Estate Agent with Berkshire Hathaway HomeServices PenFed Realty RE Lic# 0225102216

Selling your home in a declining market can be a challenging proposition. However, if you view it as a business transaction and look at the big picture it can still work out.

The factors affecting the sale of your home are location, price, condition, and market. Let's look at each one individually

Location - You've always heard the phrase location, location, location. This remains true in any market. Location affects value of your home based on your home's location relative to its surrounding community and its desirability to the buyer community.

Price - Price is the value of your home determined by a comparative market analysis (CMA) conducted by your REALTOR. This information tells you what your home is worth based on recent sales of comparable homes in your neighborhood. The current market (what buyer's are willing to pay and seller's willing to accept) determines your home's ultimate selling price.

Condition - How well the property has been maintained and taken care of determines its condition. Houses in top condition sell sooner and for a better price. A home must be maintained in ready to show condition at all times during the listing period. Your REALTOR can make suggestions about how to improve your home's saleability.

Market - Selling your home in a buyers market is very different from selling your home in a sellers market. Right now we're in a strong buyer's market. This means as a seller you'll need to be flexible on price and terms. Buyers will look for every opportunity to buy a home at a discounted price. Your REALTOR is a professional and will present you with options to consider in order to make informed decisions regarding pricing your home to sell.

Selling in a declining market:
Competition in the current market is based primarily on price and condition. To sell in this market your home must be priced right and priced well relative to your competition (other homes like yours available for sale) and...your home must be in top condition: well maintained, clean, and clutter free. Selling in a declining market may take longer. Also remember, if you sell in a declining market, you'll be buying in the same market, thus having more leverage in buying your next home. So, no matter what market you're in it all works out. You may get a lower price, but you'll be in the driver's seat to buy your next home at a competitive price and on your terms.

What to expect:
Go in with eyes wide open. Don't expect to sell your home for what you think it is worth, rather, expect to sell at what the market determines to be fair market value. You and your REALTOR should "right" price your home based on competition in the marketplace and market conditions at the time.
Accept the fact that your home may take longer than the typical 30-90 days one would expect in a normal market.

Once your home has sold, you'll have more choices of homes to buy. Interest rates are at historical lows and mortgage money is readily available for well qualified home buyers.

Comments (7)

Patrick Johnson
Windermere - Bellingham, WA

Reginald, very good article. I think the three bases never go out of style in any market. 1. Marketing 2. Condition 3. Price. It seems like those three things will make home selling work in any market.

Patrick Johnson

Windermere RE

Bellingham Washington

 

Jan 21, 2009 06:56 AM
Kevin McGinnis
Golden Gate Sotheby's International Realty - Novato, CA
Marin County Luxury Homes Expert

It's the basics that sometimes sellers forget. Thanks for the article!

Jan 21, 2009 07:48 AM
Reginald Potts
Berkshire Hathaway HomeServices PenFed Realty - Richmond, VA
Associate Broker

Hi Patrick, thanks for the kind words. The basics never go out of style, we need to continue to drive the point home with our clients to understand and distinguish between the factors we can control and the ones we cannot.

Reg

Jan 21, 2009 08:06 AM
Jason Ellis
Coastal REO Solutions - Myrtle Beach Short Sales & REO's - Myrtle Beach, SC

great start to AR and the Hew Year -- Best of Luck in 2009 -- JE

Jan 21, 2009 11:57 AM
Yvette Gardner
Keller Williams Realty, Spartanburg, SC - Spartanburg, SC

Welcome to the Active Rain community. This is a great site with lots of information.  Have fun with it and hope to see more of your blogs soon!  We have a team of three outstanding full time agents to assist your buyers and sellers in Spartanburg/Greenville, SC.  Let us know if we can ever help. Again, welcome to AR!!

Jan 22, 2009 12:10 AM
Morris Childs
PEP source - Spartanburg, SC

Welcome to Active Rain. It just gets easier after your first blog. Just write about what interests you. Give us a call or an email if we can be of service to you! We can fix most anything, our rates are reasonable and we show up when promised.

Jan 22, 2009 12:33 PM
Ann Allen Hoover
RE/MAX Advantage South - Hoover, AL
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL

Hi Reginald.....nice article for one of your first.  You are going to love ActiveRain!

Jan 23, 2009 09:22 AM