East Bay Real Estate Tips For Selling Your Home – TODAY!
March 11, 2008 by Jim Walberg · 2 Comments
In today’s crazy Buyer’s market, help is on it’s way for Sellers!
Remember in my recent posting that Sellers need to become Buyers immediately! Well, here are some tips to help Sellers get their quicker. Some of these seven tips are no-brainers, but several of them need to be reviewed again. Here we go…
- Real Estate is always a local. Know your market! Many of the communities in the East Bay real estate markets are in great shape price wise. Some are a real disaster. As a Seller you MUST know your local markets in order to price your home appropriately, or you won’t even get a nibble. In addition, even the price ranges in each of the local markets make a difference as to
which homes are more likely to sell quicker. In the Pleasanton to Orinda corridor, the price range of $1,500,000 and up is not being effected much at all. However, if you are looking the East counties, as a Seller your home is in the midst of a thousand or more for sale in the $500,000 range or less. It is a challenge to data that is much past three months old because to the changing prices that are happening everyday. Make sure you have hired a Realtor who specializes in your local region. - Check out who is buying in your market area. Who are the Buyers and why are they buying? Some of the factors besides the mortgage meltdown that is effecting pricing are; new home developments in your area; is there a healthy employment base in your region; what is the relocation market like for transferees to your community; what price points seem to be closing escrow more than others? Again, you need to work with a professional Realtor who can assist with providing you this
critical information. - Interview a professional Realtor! When you are interviewing a Realtor to represent you, ask them about market conditions, and their experience as to the realities of your local markets. Ask them about how many days on the market are the typical listings taking to sell. Ask them about the months of inventory currently on the market. For example, East Bay real estate markets have from 10 months to 28 months of inventory. It is critical for you to know what this number is for your local community. The pricing of your home will be greatly impacted by the months of inventory. Finally, ask them about the last two month trends regarding the absorption rate of homes declining or rising – another key factor to consider when pricing your home.
- What will your house actually sell for? It doesn’t matter what your home is listed for, it matters what it actually sells for. Because of the volatility of our current real estate markets you may even want to hire a licensed appraiser to prepare a price report for your home. You will need to have an appraisal report as part of the sale of your home anyway. So, you may want to get it now as a part of your pricing decision.
- Consider getting “in front of the market” with your listed price. If your specific local market is still declining – like the East counties, and you and your professional Realtor can determine the actual downward pricing trend, price your home as to where you think the price will be in three months from now! If you are willing to use this strategy you will have the competitive edge over all the competition of similar listings that are chasing the market with price reductions each month. The challenge is predicting the bottom of the real estate market in your local area is tough, even for your Realtor. The caution on this strategy is that it is almost impossible to raise the price of your home when the market turns upwards!
- Do you really have to sell your home now? If you need to get a higher price than what the current market will bare, then the BIG question is, “Can I wait to sell my home when the market reverses it’s downward trend?” If your answer is YES, then take it off the market, continue to do the fix-ups that will allow it to be in the best condition possible when you put it back on the market at a later time. If the answer is NO, then Sellers need to get to “what is” regarding the fact they may not get their home sold for the price they hoped for.
- Do your homework on the market where you want to BUY. If the market where you are buying your next home is in a similar condition of your real estate market, then figure out how to become a Buyer as soon as possible! It will not serve your long term plans to hang out being a Seller when you will be able to purchase your next home in similar market conditions.
Can you tell I have an opinion as to what Sellers need to do TODAY in order to become Buyers? I welcome your thoughts…Until next time!
Related posts:
- East Bay Real Estate: Become A Buyer NOW!
- 2009 East Bay Real Estate Pricing Strategies – Jim Walberg’s Recommendations!
- East Bay Real Estate: Fall 2009 Is The Best Time To Buy Or Sell A Home!
Filed Under: Blog, Real Estate, Sellers
Tagged: east bay real estate, East Bay Real Estate Buyers, East Bay Real Estate Sellers, Jim Walberg
Down Markets Create a Perfect Opportunity to TRADE UP!
What many homeowners do not realize, is that during down markets, several dynamics create a perfect opportunity for you to improve your position significantly, if you are moving up in value.
For example, if prices are down 20% in your local market, current home owners are discouraged with the decline in value, so many just wait to get more for the home they currently own before trading up. But, this is NOT necessarily the best advice.
Look at this example of a trade up transaction:
Your current home was worth $750,000, but has declined 20% or $150,000 and is now worth $600,000.
Not the best news, but look at your $1,000,000 dream home:
It was worth $1,000,000, but it also declined 20%, or $200,000 and is now worth $800,000.
Do the math…. To trade up before, it would have cost you $250,000, but due to the 20% decline, now it costs you only $200,000 more to get the same home! You save $50,000!
Here is another fact, if you are a long-term homeowner, it always pays to own your own home, and regardless of market values, when you trade up, it is better to do so in a declining or buyers market. Greater selection, and more negotiation options.
There is also another market dynamic in your favor, when trading up…
Many times, because of the fact that higher priced homes usually are sold to “trade up buyers,” when markets are slow, they actually decline MORE than lower priced, entry level homes.
THE RESULT: Even greater savings if you trade up now, going against market sentiments.
Look at the DIFFERENCE in price, when trading, NOT the market or historic price.
Right now rates are at all time lows. This will further benefit a long-term homeowner.
Owning your own home is proven to be the single most important financial investment you will make in your lifetime.
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
http://www.bugrealty.com
Thank you, Kevin, for your insightful comments. If we can get sellers to understand that they need to become buyers ASAP the core of the East Bay real estate market will have an immediately change. Purchasing a home is not just an investment, it is the home that will be the center of the memories of a family. It will create tax assistance. When it is sold there are more tax advantages. Contract the services of a professional Realtor to assist you with this process NOW! Interest rates and prices are ripe for great values. If you wait much longer the bounce upwards will be too late for those who are “waiting for the bottom”.