Selling a home in a buyer’s market

In many real estate markets during the last three years, sellers have exercised more power than buyers. That’s still the case, but now buyers are choosier, homes are staying on the market longer, and prices aren’t rising as quickly as they once did. It’s a seller’s market transitioning to a buyer’s market.

Prepare yourself mentally to accept that the market will set the sale terms. Don’t take it personally if you don’t get the price you expected. Do not to expect an extension of the rapid price appreciation that some markets saw in the last couple of years. You are just going to feel frustrated; instead you can be flexible on things besides price. If the buyer wants something that isn’t hard for you to give, that’s something in your favor.

Get ready for demanding buyers - In a transition from a seller’s to a buyer’s market, buyers become much more sensitive to things like stained carpets, scratched hardwood floors, dripping sinks, torn window screens - most of us live with flaws in our homes that we intend to fix eventually. When you put your home on the market, that day has arrived. Improve the home’s curb appeal. It’s even more important when buyers feel that they can afford to be picky.

Educate yourself about your neighborhood’s real estate market - Was a house recently sold for a surprisingly low price? Maybe the owners sold it to their own kids or maybe it was a “short sale” to avoid foreclosure. That’s a good piece of knowledge to have when a buyer tries to use that low sale price against you in negotiations. Ask your agent to prepare competitive market analysis, known as CMA. Your agent will look at comparable homes that have been sold recently and at homes that are for sale now, and recommend a listing price and a marketing plan. Have your agent walk you through the information he or she used to come up with that estimate.

Consider paying the buyer’s closing costs - that is an incentive you can offer to a buyer. Let’s say the buyer wants you to drop the price by 3 percent. You are firm on the price but you are willing to be flexible by working with the buyer’s closing costs. Whether or not you pay the buyer’s closing costs, you put yourself in the right frame of mind by simply considering the alternative. It makes you think like a buyer — and that gives you a competitive edge.

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