- Homes that sell this month (Nov) are on the market on average 61 days which is 17 days more than the average for all of 2014 - meaning it is taking longer for homes to sell in this market.
- There are 8,340 active homes on the market at the end of November which is 37.5% higher than it was last year.
- The average sales price to original list price of a property is at 96% which is 1.3% lower than last year and 2.3% lower from the high of 2014. This might not sound like alot but if your average list price is $400k that means ever % change equates to $4,000.
Bottom line - if you are listing your property in the winter months, know the headwinds that you are going against. There is, however, a huge opportunity for you also.
Why?
Because most homeowners that are considering selling their homes will wait until early next year - and the supply of homes on the market will explode meaning you will be competing against alot of homes on the market.
You can beat the competition and get your home sold for top dollar. Things to consider include the following...
Hire a real estate professional.
A buyer's market is not the time to represent yourself. It may be tempting to recoup some equity by not paying a real estate agent, but you'll lose more than you'll gain. A real estate professional can give you an accurate overview of the market, help you with sales and staging strategies, and bring offers from qualified buyers.
Make your home pristine.
In a buyer's market, only location and condition can move buyers to pay more for any home. You can't do anything about location, but you can certainly improve the condition of your home. There's a huge difference between a home that "doesn't need a thing" and a home that "needs work."
If there are other homes around yours that are "distressed" with homeowners who have lost jobs, or some other hardship, they won't be in top condition.
Show pride of ownership by putting your home in top move-in condition so that your home is more appealing to buyers than any other home in your area and price range.
Price it right.
You can expect lowball offers in a buyer's market, but homes that are priced fairly and in pristine condition will be treated with more respect by buyers.
If prices are falling in your area, ask your real estate professional for help. Pricing according to recent sold comparables might not be as smart as pricing to pending sales -- those yet to close.
You have to know what your bottom line is, but pricing your home should have nothing to do with how much you owe creditors, how much cash you need to buy your next home or how much you need for your retirement. Buyers will only pay current or pending market value as determined by the most recent market sales.
Keep negotiations pleasant.
Negotiation is a fine art, and typically works best when both parties get what they want. For example, you may be willing to take less money in exchange for a cash offer or a quicker closing. Your buyer may be willing to pay your asking price, but they may ask you to pay their closing costs.
You'll quickly realize if you're dealing with a sincere buyer. Respond to the buyer's negotiations with documentation, receipts and other information in a timely manner. If you feel the buyer isn't negotiating in good faith, simply stop responding. You're under no obligation to respond to an unreasonable offer. The buyer will get the message and either go away or get real.
It may surprise you to learn that buyer's markets work for sellers, too. In a perfect world, you'll get top dollar for your home and buy your next home at a bargain basement price, but that's rare. Instead focus on the big picture -- selling and then buying at a reasonable price. Don't worry about what you didn't get or what you wanted for your home. When you buy your next home, you'll be able to take advantage of falling prices, too. It all evens out. The goal is to get the home you want.
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