What Should Sellers do?

GET REAL....

Do I have your attention? Time to stop playing around and accept that the paradigm has shifted (and not in your favor). If you own a home that you THINK is valued over $450,000 you are going to have a hard time finding a Buyer.

Happy Valley has been wildly over-built in that price range. We had a modest amount of Speculator activity in new construction that is now crashing (read - selling for a LOSS). Massive amounts of ARM's are adjusting up and property tax bills are coming due. Pre-foreclosure activity is sky-rocketing and we are just at the beginning.

Here are two facts that the industry does not want you to know:

1) Prices in Happy Valley are FALLING (retreating to 2005 values), not increasing.
2) Time on market is closer to 180 days (and growing), not the 60 days reported.

The vast majority of Oregonians cannot afford a home over $450,000. If you live in Happy Valley could you afford your home TODAY based on current rates and what you think the house is worth? Tricky mortgages are gone and it is now time to pay the Piper.

OK...so now that we understand each other...what to do??

1) Hire an experienced LOCAL Realtor who you believe will stay in the business during this downturn. Look for real education (Bachelors and/or MBA). Don't be baffled by Industry designations like; GRI, CRS and e-PRO. Often times the underlying educational base is a GED.
* Price your house correctly

2) Forget everything you think you know about the value of your home. Take a hard look at the sales comps from the previous few months. Ask your Realtor to find out what other sales incentives had to be offered. Be prepared to list your home for MUCH less than you think. If the Realtor you are interviewing tells you that they can get your more...run...very far away. They are LYING. Your listing price must reflect market reality...or it will sit.
* Price your house correctly

3) Be prepared to offer incentives to the Realtor who represents the Buyer. These Realtors have literally hundreds of homes to chose from, and often a short period of time to show their Buyers. No realistic way to show every house on the market. Offer incentives to get them to show your home. Try a BAC of 3% or higher.
* Price your house correctly

4) Make yourself easy to do business with. Properly clean, prepare and stage your home. Take care of all the deferred maintenance. Proactively provide all pertinent info to potential Buyers.
* Price your house correctly

The big thing right now is for Realtors to scream in their listings that their Seller is "MOTIVATED!". Yet, when you look at the listing the house is priced too high, the commission offered is below industry standard and other aspects of the listing make it seem that the Seller wants it done their way. Here is my advice...do not say you are motivated...SHOW you are motivated. Price, price, price...3% BAC or more, house prepped for sale. That is how you show the market you are motivated.

Even in a down market homes sell. If you want yours to be one that does you must take some pretty basic steps.

MY OVERALL ADVICE IS TO NOT SELL FOR THE FORESEEABLE FUTURE IF YOU DO NOT HAVE TO. TOO MUCH INVENTORY CHASING TOO FEW BUYERS. IF YOU CAN WAIT OUT THE DOWNTURN, DO IT.

If you MUST sell (relocation, job loss, divorce, etc) get aggressive early. Don't trip over a dollar to pick up a dime!