Rough Ride Ahead

Short term (2-3 years) it looks like we're in for a rough ride. Even if the Federal Reserve lowers interest rates further, there's still the issue of much tighter lending requirements, which effectively takes many prospective buyers out of the market. If this were the only issue, we'd probably be o.k., but, adding insult to injury we're right in the middle of ARMs adjusting to their fully indexed rates. As rates increase, many borrowers can't make their mortgage nut, and with little or possibly negative equity, they're walking (or running) away from their homes in droves. Increasing supply combined with lower demand means...you got it...lower prices.

What's a seller to do? If you buy my argument above,...price ahead of the declining market, have a rock solid marketing plan with an emphasis in online marketing & consider financing part of the sale.

In this case, "pricing ahead" means pricing below comparable homes that have VERY RECENTLY SOLD. No, not homes that sold 3 months ago... you'll need to find comparable homes that have closed escrow in the past 30 days! FYI - SOLD means homes that have CLOSED ESCROW, not homes that have recently been listed for sale. Price 3% below the most recent comparable sale and make sure you have your home in tip top shape.

According to the National Association of Home Builders & the National Association of Realtors approximately 80% of home buyers start their search using the internet. So use internet search engines to get the word out. A good Marketing Plan focuses on getting your home listed on the following web sites (at a minimum) Google, Yahoo, MSN, Zillow, Realtor.com, Homes.com, craigslist.org, Trulia. Although listing your property on the MLS does help get your property online, your Realtor will need to link, post & advertise directly with the major online engines to maximize your online exposure.

Point the search engines to a dedicated Property Specific Web Site, so you can measure the traffic patterns. Make sure the Property Specific Web Site you select offers a graphical traffic analyzer. Have your Realtor make adjustments to the online campaign for optimal performance.

More to come...

For Seller Financing, check out this link:
http://www.circlelending.com/smartseller/index.asp