Each year is a special year, and each season in real estate (often spanning several years) also has its own characteristics.
We are now in a season of struggling, declining markets. New REO (property owned by banks) inventory is threatening to appear at any moment, and buyers are no longer competing for property as they once did. Of course, we are all concerned that prices will decline again, and national companies are calling for price reductions(!) of between 5 and 20%. If you are selling a house or other piece of property, you have to wonder, “What should I do?” Virtually every home we’ve sold in the past few months has experienced price reductions, and in some cases we’ve had to make drastic reductions.
Here are some guidelines for selling that piece of property:
1. Sell sooner rather than later. The market is full of folks who “decided to wait it out” because they did not get the offer they wanted, and now instead of a small profit, they are looking at a short sale. Unless you plan to hold for 5-10 years, or unless you JUST bought, or got a “killer deal,” get your property listed NOW.
2. Look for the opportunity down the road. Getting rid of an albatross is the best decision you’ll ever make. Do it, don’t look back, and move forward. The market will be FULL of opportunities for the foreseeable future. It is always wise to cut your losses, and remember, every interest payment you make on that “too high property” goes into a black hole without doing you any good.
3. List your home at the right price. I don’t care what the “best marketers” say about getting a higher price. In some cases, they are wrong, and in other cases, they are lying. No buyer in today’s market pays any more than he has to. Any agent who says he can get a “better price” in today’s market is simply not being honest with you. the price is the price is the price. Price your property aggressively, and put yourself in a position to get multiple offers. When you do that, you’ll place yourself in the path of the opportunities coming on the “buy” side, rather than struggling with the “sell” side.
