A Return to Fundamentals in 2007 for Property Sellers
If you sold and move up in the real estate market in the last few years, you have a thorough understanding of the madness of the recent sellers market. Simply put, it was to hot to touch. Selling your home was no problem at all. Buying a new one, however, was a different story. The pool of buyers was large and inventory was low. Frankly, people were way overpaying for homes.
As we turn to 2007, that sellers market has played out and now it is a buyers market. Interest rates have risen, home values have stagnated or dropped and demand is down. In practical terms, this means the prospect of selling your home for a nice profit in 2007 is not impossible, just more difficult.
If you are considering selling your home in 2007, there are a couple of factors that you should focus on. The first is your local real estate market. Just because national trends are in favor, it does not mean they apply to your local market. Many markets such as Colorado and Texas simply do not follow national trends. Make sure to check yours before assuming it is a sellers market.
A second factor to consider is whether you NEED to sell now. Just as the sellers market petered out, it will also come back. Yes, it might take a few years, but patience has always been rewarded in real estate. If you can hold out for a few years, it might be wise to do so.
Assuming you have to sell your home in 2007, it is time to return to the fundamentals of the sales process. First and foremost, understand your market by getting an analysis of similar properties in the neighborhood. Second, get your home in tip top shape including your landscaping and cleaning up the garage and driveway. Third, set your minimum price and stick to it, to wit, don't panic if your property sits on the market for a bit. Fourth, be reasonable when it comes to setting a price. Buyers have many choices these days, so don't price yourself out of the market.
At the end of the day, 2007 is shaping up to one for buyers. If you focus on the fundamentals, however, you should be able to move your property if you persevere.
