Real Estate NewsSellers Should Brace For Less Demand, More Competition
New listings of single-family homes in Santa Clara County, Calif. -- one of the nation"s hottest housing markets -- more than doubled from January to July, rising from 1,159 to 2,395.
The backlog of all unsold homes in the county, also known as Silicon Valley, more than doubled from 1,850 in January to 4,154 homes in August, according to the San Jose (Calif.) Real Estate Board, which records the county statistics.
Similarly, inventories are on the rise in the Seattle area. Some 16,582 homes and condominiums were listed for sale last month in King, Pierce and Snohomish counties, 2,648 more than in March, according to the Northwest Multiple Listing Service.
The Silicon Valley and Seattle real estate markets aren"t crashing, nor have they become buyer"s markets, but they are somewhat tamer after a boom of frenzied sales, multiple bids and escalating prices.
"Things are definitely slower. I"m finding in my area that every day there"s at least 15 listings that have been expired or canceled. I would say that"s a 10 to 15 fold increase from March. They priced the property where the prices were yesterday, and the listings sit. Or the seller is stubborn and refuses to lower the price," said Steve Suchow, an associate broker with Century 21 Tri-Star Realtors in San Jose.
That"s because the world"s economic uncertainty is leaving its mark on the Pacific Coast"s real estate markets.
In the mid-1990s, Silicon Valley experienced a record surge in initial public offerings, lucrative stock options and heavy investing in the global computer industry. The economy churned out tens of thousands of jobs a year. With jobs came so much demand for homes that median prices rose to $320,000 and out of reach for many buyers.
The economy sustained the housing boom for several years until world economic uncertainty cost the stock market a year"s worth of gains and the Pacific Coast real estate markets some customers.
More sellers are coming to market with boom prices after watching neighbors sell homes in days for tens of thousands of dollars more than list. The asking prices, however, are often inflated with expectations of a level of appreciation the market no longer supports.
"We"ve had two good years. How can it continue? Ninety percent of the houses out there are all overpriced right now. They ought to go to a workshop on how to lower the price," said Paul Conti a sales associate, in San Jose with RE/MAX Valley Properties.
Not only will sellers have to come to terms with pricing, they"ll also have to bone up on the art of selling a home. Buyers are getting finicky in some areas and even in a seller"s market, the best home gets the best price.
Here are some tried-and-true tips for sellers who may have forgotten what it"s like to really "sell" a home.
First impressions
Time honored "curb appeal" -- the way a home looks -- appeals to buyers. Clean up the landscaping, remove the debris, catch up on that deferred maintenance by replacing cracked windows, torn screens and other unsightly problems. Then lay on a new coat of latex. Don"t plan on major improvements unless they are warranted. Sell the potential at an affordable price.
Inside information
House clean and perform deferred maintenance inside too. Store unused or unnecessary items in closets and storage areas or hold a garage sale. Eliminate clutter to make your home appear more spacious. Consider interior painting and carpeting.
Set the stage
When you are ready to show your home, use techniques new home builders employ in model homes. Make it look lived in, but with plenty of space for the buyer"s imagination. Turn on all the lights -- including the porch light -- to help make your home feel spacious. Open the drapes. Light the fireplace in the winter. Arrange healthy house plants and some fresh flowers around the house. Brew some coffee. Bake a cake. Play music, but keep it light.
Use a professional
In an uncertain market, you need a professional"s guidance. REALTORS® have the experience to assist you in the look and feel of your home.
Finally, pretend you are the buyer and, along with your agent, take an inspection tour of your home.