Spring is for the Seller

Last month, we tried to prepare buyers for the spring market; now it’s the seller’s turn. This spring will be somewhat more challenging than in prior years. For the last several years, the real estate market in Pittsburgh was a free-for-all. Anxious buyers made for short marketing durations for sellers. This spring is likely to be different in that the national media has made home buyers timid, which makes them take longer to make a decision, based on the thought that if it truly is a buyer’s market, they should be able to call the shots. The so-called economic gurus have certainly thrown cold water on things; honestly, I sometimes think that their compensation is somehow inversely tied to decreasing consumer confidence stats.

As many a buyer in our local markets can attest, delaying the decision to purchase can cost you your dream. In the last several weeks, I can point to several cases where the buyer has delayed his or her decision for one reason or another and has lost the opportunity to another buyer who was willing to make a decision. It is really not a game, at least not for most. It is a search for your HOME, the place where you will raise your family and hopefully find a lifetime of happiness. Unless you are Donald Trump, the strategy of delaying your decision in order to create suspense and improve your deal doesn’t often succeed.

So sellers, what should you do to improve your chances of selling quickly for a fair price? First, take a look around, both at your home and at YOUR local real estate market. It doesn’t matter if homes are selling for record numbers in Sewickley if you live in Ross Township. Ross is its own market; in fact, Ross may be a couple of markets, so look for homes that are similar to yours and within one mile from home that have sold within the last 12 months.

When your house is appraised, this is what the appraiser looks for in their comparable sales. If your house is in Ross, they don’t look at one home in Shaler, another in Mt. Lebanon and another in Brady’s Bend. If you have a two-story brick colonial with three bedrooms and two baths, look for those, because the range of value for your home is established by these sales. You will probably learn of these sales anecdotally, but look them up on the county Web site to verify the actual sales price. Your Realtor will do this work for you when the time comes, however, you might as well go into this with your eyes open, rather than having some grotesquely misinformed value that has been determined by emotion rather than fact.

Can your home’s value lie outside the range of value? Sure, quality and condition do play a role in value, but I’m sure you’ve heard the term ‘over-improvement.’ It sometimes applies. Your superior condition may account for a few thousand dollars of value to the upper end of the range, but not tens of thousands.

Earlier, I used the term Realtor, and in a market where the buyer has more clout, you need to be well-represented. Not because the Realtor has the magic solution to your problem, but because buyers will be utilizing their services and you cannot afford to go unrepresented.

Follow the same guidelines I gave buyers last month for selecting your Realtor. Ask around, interview and look for a personality fit. You have thousands to chose from, so with some effort you'll find the right one. In the case of the seller, make certain the individual you select is very familiar with your local market; an error here can cost you marketing time. Merely having a real estate license doesn’t necessarily qualify a person to represent property anywhere in the state.

I’ve suggested before that there is value in having your home pre-inspected. I think that advice is even more important now. In a market where the buyer believes they rule, home inspection is often used as a method to renegotiate. In the normal timeline of things, the offer is presented and accepted and made subject to a home inspection that takes place about 10 days following acceptance. Combine a small degree of buyer arrogance with an inspection report questioning the property’s condition and just a dash of buyer’s remorse (which is a natural byproduct of large decisions) and you have a recipe for disaster. A pre-inspected home offers the potential for avoiding this occurrence. A buyer is not obligated to accept your inspection, but it does place you in a position of strength when attempting to combat the buyer’s inspector’s opinion. The reality, however, is that buyers often prefer to save the $400 inspection fee and if you can provide a reputable inspection report, that will do. Not to mention the value of knowing what could come up in an inspection and having the opportunity to make corrections before the first buyer ever walks in the door.

Follow these steps to smooth out the process. This spring market is going to be interesting, but with some forethought and planning, everything will work out great!

Gary Straub is an independent real estate consultant who has been a real estate professional for 36 years.