Is it a Buyer's Market?

Times have definitely changed in the last year in most parts of the country. I'm in Birmingham, Alabama and we are lucky to have 3 new automoblie maufacturing plants located in a triangle around our city.

But - if you are in an area that doesn't have commodities or heavy industry (two sectors that are doing well right now), what is your market like?

Chances are - you're in a "Buyer's Market".

What does that mean exactly? It means that there is more inventory than there are potential customers for that inventory. just like in the stock market - when almost everyone is selling and few are buying - the stock price will go down.

Many seller's think that because they paid a certain amount for a property, they can get at least that amount when they sell. Sadly, this leads to overpricing and a long, long wait until they sell much later at a lower price. My best advice is to find a real estate agent who will tell you the truth about market conditions and back it up with recent sales prices of similar home.

Last week, I was driving around Destin, Florida. Every third home was for sale. Auctions were common. Prices escalated in the area for 5 years and then they reached a top. What's happening now? The seller's are "holding out" for their price as more and more homes come on the market at significant discounts to what they are asking. The bottom line is that the sellers who put their homes on the market first are going to take a big hit.

As time goes on and the market is flooded with inventory, prices will go down and down and down. A smart seller would realize this and take the loss now before any further reduction in prices happened.

Is there anything you can do if you are trying to sell into a buyer's market?

Yes - make sure your home is:

#1) Priced very competitively with TODAYS prices (not what you paid 2 years ago)
#2) Make sure that your home looks like NEW (and I mean new - not just "touched up")
#3) make sure you get PLENTY of exposure.

The rpice, the condition, and the exposure are everything when it comes to selling into a down market. Good Luck!

by Mike Carraway Access1000.com, 7steps2freedom.com