NEW SELLING STRATEGIES FOR THIS MARKET

With the dramatic increase in inventory in Mt Pleasant during the last 18 months, Sellers (and when I say "Sellers" I mean those people who ARE motivated to sell, not those who just want to "test" the market) must understand that they need to use different strategies to succeed.

No one can control the market. Sellers must accept that they can only control two things: Price and condition.

In a "Sellers' market" like we were living in 2005 (when we had very little available supply), Sellers could ignore any deferred maintenance issues and still receive multiple offers within days of listing the home. Sellers could price their home anywhere (within reason) and buyers would often agree to pay prices above their list price.

It is a "Buyers' market" now, and motivated Sellers must change their strategies if they wish to succeed:

1. Condition: Buyers are very picky and they have lots of homes to choose from! Sellers must take care of all deferred maintenance issues, replace tired-looking carpet, paint, landscape and stage their home to put "their best foot" forward from day one. Their home must be in perfect condition and present like a model home - otherwise it may take a long time to sell!

2. Price: Sellers cannot "test the market" any longer by pricing the home in the "middle of the pack". Nowadays it makes no sense to start higher and "be willing" to reduce the price over time gradually. This strategy will result in them "chasing the market from behind" unsuccessfully. They need to price their home aggressively to start with. Look at the competition, pick the 2-3 listings that are most similar to theirs, and price their home significantly below (3%-5%) from the beginning. They also need to make sure that their List Price is at or below recent comparable sales in the area. Otherwise they may get a nasty surprise when the Buyer's bank orders the appraisal, since these days, after the sub-prime meltdown, appraisers are very conservative!

In the end, Sellers who pick this strategy will sell first, and probably for a higher price (in a declining market, as time goes by, prices decrease). Sellers who decide not to choose an aggressive pricing strategy to start with end up getting caught in the "downward spiral" of a neighborhood, where all competitors start lowering their prices gradually, and everyone ends up in the same boat (worse off)!