Bonita California real estate
KEYS TO SUCCESS IN SELLING YOUR HOME IN A BUYER’S MARKET
In previous years, the home down the block sold for over the asking price and it even sold in only a couple days. then, 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 can take up to two or three times longer to sell the average home than it did only a couple of years ago.
In terms of home value, prices in California and San Diego specifically have declined by as much as 30% in some local communities. Since 2005, many sellers are experiencing long delays in marketing their homes.
A seller must give careful consideration to properly pricing the home before placing a home on the market, as well as the improvements and the location. Most importantly, one must consider the current market conditions. What your neighbor may have sold their home for a couple of years ago has no correlation to what the value of your home is in today's market. Your buyers won't really care how much your improvements may have cost, how much you originally 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 comparable homes have sold for in your location within the last few months. Let’s say that about 20 years ago, when gold hit a high of $800 an ounce, you bought a one ounce Krugerrand 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. Considering that during those 20 years you earned absolutely no interest, that is a very substantial loss. Does anybody really care what you paid for that Krugerrand or that you maintain it in excellent condition? No. All buyers care about is whatever the market has determined the value of that Krugerrand is today! Another good analogy is the stock market. What you paid for your IBM shares last week has absolutely no relationship to what you can sell them for today.
Your home improvements, upgrades, location, general upkeep and landscaping do figure into the value of your home and its salability. However, the most imperative factor still remains what the current market for your location is willing to pay for similar homes. Most real estate agents will agree that initial accurate pricing for a home accounts for 95% or more of good marketing of a residential property.
In order to be successful and get top dollar for your property in a buyer’s market, a seller 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. The best way to do this under the current market conditions is to team up with your local realtor, who will provide a no cost or obligation CMA. CMA stands for comparable market analysis which is an objective assessment of what you can expect to realistically get for your property under the current market conditions. Aside from seeing homes that have sold in the CMA, something just as important, 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 selecting agents/brokers, sellers must bear 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. As is apparent, 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 amount of experience, personal knowledge of the neighborhood, analysis of the market, and most importantly, their specific and detailed marketing plan for your property.
The key to success in today's buyers market is accurately 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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