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Staying Sane in an Insane Real Estate Market

Staying Sane in an Insane Real Estate Market

Pasadena real estate market is changing daily and is becoming more of a buyer’s market than ever before.  Home sellers are having a very hard time trying to keep up with these changes and need a strong real estate agent to guide them along.

So how do you stay sane in a home buyer’s market?  First, let’s define what a buyer’s market is.  A buyer’s market is when home prices are declining and the inventory of homes is increasing.  Usually as an area starts getting close to six months of inventory, that real estate market is considered a buyer’s market.

Here are some strategies that can be employed to ensure that you are ahead of the other home sellers:

Selling Your Pasadena Home QUICKLY is CRITICAL

In a buyer’s market environment, pricing and marketing  will make or break your home sale.  The best real estate agent will be able to demonstrate the wisdom of selling NOW vs. LATER.

Ask your realtor to calculate the holding costs of your Pasadena property.  The holding costs include your normal costs of the property plus the amount the property is declining in value.  For example, if prices are declining 1 percent a month and your home is worth $500,000, it costs you, the seller, an additional $5,000 per month to hold on to your home.

Do NOT Overprice Your Pasadena Home

In a buyer’s market, if your home doesn’t sell within the first 30 days when you usually have the greatest number of showings, your home can end up staying on the market for months.  You will end up “chasing the market down” by overpricing your home.  This means that even though you lower your price, you haven’t lowered it enough to keep pace with the declining market.

In most cases, you’re better off pricing your home a bit under market (1% to 2% lower) which will create excitement with buyers and local real estate agents and generate additional showings and offers – sometimes, multiple offers.  This will result in the maximum net amount and a quick sale to you, the home seller.

Hire a Real Estate Agent with an AGGRESSIVE Marketing Plan

Look for Pasadena real estate agents who have an aggressive marketing plan and who are selling their home listings despite the bad real estate market conditions to net the most from your home sale.  Make sure that your real estate agent uses the cutting edge, latest internet marketing along with the traditional marketing techniques.

You may need to pay a HIGHER commission

To attract buyers’ agents to show your property first, you many need to pay a higher commission.  Now is not the time to be asking for commission discounts.  Real estate agents have a number of homes to choose from when they are setting up appointments for their clients, commission is a nice incentive to ensure that your home gets to be shown FIRST!

STAGE your home

It is critical that your home looks inviting and feels comfortable. Buyers buy homes on emotion. Look at homes that are for sale in your neighborhood.  What does your competition look like? Make sure that your home sparkles and shows better than any other homes currently on the market.

Remember, a home seller will always be better off in a buyer’s market to realistically price their property.  This is NOT the time to test the market with a higher price.  When you are in a declining real estate market, each month you wait to sell means less money for you at closing.

Buyers’ market is also a great opportunity to trade up to a bigger home.  Yes… you will receive less fro your existing property, however, the trade-up property will cost you less.  This also helps with your property taxes!

As you interview Pasadena real estate agents, ask them about what they are seeing in the market place.  What kind of incentives are other sellers offering?  Be competitive and do whatever it takes to sell your Pasadena home as quickly as possible.

Read More: 

Top 10 Home Seller Mistakes

Real Estate Agent Interviewing Tips

Related Posts:

Posted on December 7th, 2008
Posted by: Irina Netchaev

  1. South Pasadena Real Estate Market Report - November 2008 | ARTV

    […] Read also: Staying Sane in an Insane Buyer’s Market […]

  2. Home seller bloopers - a day in the life of a Pasadena realtor and her clients | Pasadena California Real Estate Market Resource

    […] Staying Sane in an Insane Real Estate Market […]

  3. Loan Modifications

    Great stuff. Nice to read some well written posts that have some relevancy !

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