How to Sell Your Home in a Buyer's Market

The prospect of selling your home can be daunting, even in a good market. Lots of inventory, dropping prices and low interest rates are turning 2007 into a buyer's market posing special challenges to homeowners looking to sell.

The market is "shifting" meaning it is in a transition from a seller's market to a buyer's market. The good news is there is still time to capitalize on the increased home values that have built up over the last several years. Home sales are slowing and prices are stagnating but the market hasn't tanked.

The bad news is that buyers know they are gaining leverage. They are choosier and ready to take advantage of the changing tides after years of sellers having the upper hand.

Get to Know the Locals

Whether selling on your own or working with a realtor, get to know the local real estate market. Talk to neighbors, check online resources and read the real estate section of the local newspaper. This will help you as you choose a listing agent and it will give you confidence to make the right decisions.

In a buyer's market, it's important for sellers to consider all the factors that led to a closing sale price. Was it a foreclosure or family to family transaction? Consider apples to apples comparisons, not apples to oranges. If your neighbor's have a view, central air, alarm system and garage and your home has none of these amenities, it's not a good comparison even if both homes have two bedrooms and two baths.

Also, keep in mind to look at closing prices, not asking prices. Closing prices are hard facts; asking prices are theoretical and won't give you a realistic idea of what homes are getting for selling price. Remember that the market is changing so the more recent your information the better. There is a tremendous difference between January 2006 and January 2007 in real estate terms.

Get a Good Team

Regardless of if you represent yourself or hire a realtor to sell your home it is a good idea to get a professional home inspector before putting your house on the market. Home inspectors are impartial and work on a fee-per-services basis, not commission.