This article article was published in the "Martinelli Newspapers" in the August 10, 2006 weekly issue of The Westchester Crusader, The Rye Chronicle, The Eastchester Record, The Pelham Sun, The Sound View News Home News & Times, The Mt. Vernon Independent, Harrison Independent
and North Castle News

Life and Money - "Steps for Sellers of Homes as Prices Fall "

By Frank Sisco, CPA, PFS

Copyright 2006 Frank Sisco

(Word count = 990 plus 67 words for About the Author)

Over the past year, many publications have run articles about the impending crash in the residential real estate market with the bursting of the real estate "bubble."   In some areas, the bust has already started and sales have slowed dramatically.   The question I hear often from readers and clients who are sellers is:   "What do I do?"

In general, if you have decided to sell your house (or coop or condo), I think you should go ahead with selling it and not wait for prices to resume their upward trend, as you may lose a precious opportunity now.   Importantly, you should reflect on your current selling strategy, reevaluate your assumptions, and make important changes if necessary.      Here are 4 steps I suggest for sellers to take.

1.   Get more involved in the sales process.  

In most cases, people use real estate agents to help them sell their houses. Surely you've seen "For sale by owner" signs, ads and websites, but usually the sellers end up engaging the help of an agent.   In a seller's market when prices are going up and up, sellers often get their sought price, and, surprisingly, sometimes more.   The agent's role is important but not as critical as it is in a buyer's market when selling is a lot tougher.   Thus, if you figured on relying entirely on an agent whom your cousin or best friend recommended to sell your house, I think you are playing with fire.   You need to go about the process of selecting a real estate agent as you would another professional like a CPA, lawyer, or even doctor.   Put time and effort into the process and ask questions that trigger revealing responses as well as consult several referrals.   But getting the right agent is not enough.   You must get yourself involved fully.   For one, monitor the activities of the agent, without being interference.   Secondly, develop a profile of your house's special features and the special characteristics of the neighborhood, community and town in which you live. (See #2 below).   Next, prepare a marketing plan and write it down, edit it, and expand it.   Although the agent is handling posting to Multiple Listing Service (MLS), ads in newspapers, open houses, curbside signs, inclusion in their website, I believe you should go further.   Put up your own website, with many more photos, and even full-motion videoclips (See my website www.VideoVoom.com for examples), and use the easy access to the webpages to distribute the information to potential buyers.   Get relatives and friends, or part-timers, to help you send the webpages to possible buyers, including the hundreds of email names you already have in your rolodex or computer database.   Ask friends to spread the word.   Make it viral.   Always have with you at least a business card with the website info.   No harm in having a looseleaf portfolio of your house info and photos in the back seat of your car in case you meet an interested buyer.   I think you should devote at least 7 hours per week to marketing your home.

2.   Put more effort and money into preparing your home for sale.  

Buyers see many homes before they buy.   In the upcoming downturn, buyers will be even more selective and the number of homes available for sale will be even greater.   To compete effectively, you need to differentiate your home, while enhancing the value, as much as possible.   Some changes are expensive like fixing the roof, repairing the windows, pointing up the foundation, and painting the inside and out.   But other changes are not costly, like tidying up the outside, trimming shrubs and hedges, pruning trees, and adding colorful flowers, rock gardens.   Don't make your home too unique from a decoration standpoint as it may conflict with the tastes of most buyers.   Declutter it of newspapers, and mementos.   Remove the mess of ornate items and collectibles. Show the hard wood floors.   Go for a lived-in but a clean fen shui look.   One that relaxes rather than causes jitters.   Consider the services of a stager or decorator.   The cost may come back to you many fold.

3.   Create a "portfolio" of your home to help the selling process.

When developing a profile of your home's special features, you should collect photos and videos and assemble a portfolio, to also be used on your website.   Highlight the special features such as the backyard privacy, the spacious home office, the high ceilings giving an open airy feeling, the large windows letting in lots of light, the easy-to-clean kitchen counters, the large maintenance-free stone patio, the slope of land allowing for the runoff of water and lack of flooding, the expandability of the attic and basement, and on and on.   You may have photos or videos from many years ago, or during the different seasons, which can help educate the buyer.   Although many real estate websites contain community info, often it is in the form of cold facts and figures.   Personalize the community info.   Clip articles from newspapers and magazines, with photos, about the positive developments in the community, especially helpful to buyers from outside the area.   Stress the locale and proximity to highways, shopping, and services.    Perhaps even take videos of the key points of interest, like beaches and lakes, parks, churches, downtown shopping, schools and their principals and community leaders.   Try to capture what it is to live in your home, not just in the rooms, but also in the community.  

4.   Prepare yourself emotionally for disappointments.

In the difficult times ahead, you may experience many unfulfilled expectations.   Fewer prospective buyers.   Reduced sales price.   Longer sales times.   Botched transactions.   Prepare for it.   Do your best.   Express yourself so that you can get the counsel and comfort of professionals such as your real estate agent and financial advisor, family members and friends.   Keep a level head.

Next week's column will cover "Steps for Buyers of Homes as Prices Fall."

About the author.

Frank Sisco is a CPA and Personal Financial Specialist, and author of many articles about personal finance and issues of life and money.   His firm, Financial Management Corporation, is located in Harrison, NY.  Frank resides with his wife and daughter in New Rochelle, NY.  He can be reached at 914.381.3737 or by email at ideasmoney@aol.com.   Visit his website at www.LifeAndMoney.com, which contains this and prior articles.