Encinitas California real estate
KEYS TO SUCCESS IN SELLING YOUR HOME IN A BUYER’S MARKET
Two years ago the home down the block sold for over the asking price. Plus, it sold in a couple days. Unfortunately, that was then and this is now. California has entered into a buyer’s market. Buyers have more properties to choose from and properties are staying on the market for a longer time. In many cases, it is taking two to three times longer than it did just a couple of years ago to sell the average home.
As far as home values go, prices in California and San Diego in particular have declined by as much as 30% in some communities. Since 2005, many sellers are experiencing long delays in marketing their homes.
Before placing one's home on the market, a seller must give careful consideration to properly pricing the home. Not only take into consideration the improvements and the location. Also, and most importantly, consider the current market conditions. What your neighbor sold their home for a couple of years ago has no relationship to what the value of your home is in today's market. Buyers don't care what your improvements cost, how much you paid for your home, or the fact that you're not in a rush to sell immediately.
The current market determines the value of homes by how similar homes have sold for in your area within the last few months. About 20 years ago gold hit a high of $800 an ounce. Let’s say you bought a one ounce Krugerrand at that time and stashed it away in a safe deposit box. After 20 years, it still probably would look very good but it would be worth around $670 today. That is a substantial loss when one considers that during that total period of time you earned absolutely no interest on that money. Does anybody really care what you paid for that cougar ran or that you maintain it in excellent condition? No. All buyers care about is what the market has determined the value of that Krugerrand is today! Another analogy would be the stock market. What you paid for your IBM shares last week has absolutely no relationship to what you can sell them for today.
Sure, your home improvements, upgrades, location, general upkeep and landscaping all figure into the value of your home and its salability. The most important factor still remains what the current market for your location is willing to pay for similar homes. Most real estate agents agree that 95% or more of proper marketing of a residential property is determined by the initial proper pricing for the home.
To be successful, and to get top dollar for your property in a buyer’s market, sellers must first step back from the home. They must emotionally detach themselves from the property and determine what the market is willing to pay for the property. Under the current market conditions the best way to do this is to team up with your local realtor, who will provide a no cost or obligation CMA. CMA stands for comparable market analysis. This is an objective assessment of what you can expect to realistically get for your property under the current market conditions. Not only will you see homes that have sold in the CMA, but just as importantly, you'll see how long homes were on the market, what homes expired unsold and/or were canceled during the listing. All these factors will come into play to properly determine the price for your property.
When interviewing agents/brokers, sellers must keep in mind that many less experienced agents (due to lack of experience or just wanting to please their client) will suggest a listing price that is unrealistic for the current market. Therefore, sellers must never list their property for sale based solely on the recommended selling price of the property. It is imperative to consider agents by their experience, knowledge of the neighborhood, analysis of the market, and perhaps most importantly, their specific and detailed marketing plan for your property.
The key to success in today's buyers market is properly pricing your home from the outset and selecting an experienced, competent Realtor to professionally market your property.
NOTE: The opinions expressed in this article are the author's own and do not necessarily reflect the opinions of this website or Brokerforyou/Promotions Unlimited.
Disclaimer: The information provided in this article is general information on the legal issues presented and should not be regarded as a substitute for individual legal advice from an attorney.
The above article is presented as a community service with the permission of the author.
Disclaimer
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