In this ‘balanced’ market, there are inevitably going to be properties that are over-priced, or sellers whose expectations are out of line with buyer’s wants and needs. Dian Hymer has a good article on Inman News today about some considerations if your house is languishing on the market…

What are your options if your home is less desirable in the current marketplace than you’d hoped it would be?

One option is reduce your price. Another is to hold out for a while, hoping that the market improves to meet your price. In most cases, however, the latter option is unlikely to yield results.

A third option, if there’s no urgency to sell, is to rent the property for a time and sell at a later date. This might be worth considering. However, as with any scheme, there are pros and cons that should be evaluated carefully before making a decision.

On the positive side, a property that is, or will soon be, sitting empty will generate income. This income can help offset mortgage and property tax obligations and homeowner association dues for condo owners. Another plus is that you can buy time until the market improves.

On the other side, consider that the market in most places is still good. 2006 isn’t expected to be as strong a year for homes sales as was 2005, which was the best year ever. However, David Lereah, chief economist for the National Association of Realtors, predicts that the 2006 home sales volume will be the third best ever.

As a seller, your best bet is to hire an agent who knows your neighborhood and who knows the agents who work your neighborhood with buyers. Then learn the comps and choose an asking price that makes sense in today’s market. There are plenty of properties changing hands in San Francisco, despite what many media reports might lead you to believe. This balanced market can be great for sellers who do their homework, prepare their property well, and price it right the first time.

This entry was posted on Monday, March 20th, 2006 at 6:15 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.