A guide to buying and selling your home in today’s market

October 3, 2008
by Bonnie Golub

Everything you’re heard about the soft real estate market is true.

Nationally, some experts think that our country is in the worst real estate slump since the 1930’s. Here in Westchester, though down 17% in value, we are somewhat more insulated than the rest of the country. Specifically in New Castle, house values are down 9.85% from the high of 2005.

New Castle has greater resiliency that many other areas across the nation. Properties in New Castle that are in a desirable location, realistically priced, and have updates and amenities continue to sell.

Fluctuating oil prices, difficulty in getting financing today because of the sub-prime mortgage debacle and the staggering fall of Wall Street giants have added to buyers’ unrest and mistrust of the market.

Usually, change in lifestyle dictates the need to sell or buy. Your family is expanding or shrinking, a new job may require that you relocate, or you’re just ready for a change because the current layout of your home no longer suits your needs.

So how do you sell your house in this market?

Don’t waste time.

Don’t “wait out the market” hoping that things will improve; they haven’t in the past few years. They may not improve for the next few years. Place your house on the market now.

View your house as if you were its buyer.

Go through the house with a laser eye. Is it cluttered? Does it need paint? Do the windows sparkle? Have your front bushes overgrown your windows? Is it dark?

Don’t spend a lot of money; new kitchens and baths are wonderful if they are already in, but absolutely no big-ticket renovations just prior to listing. A new vanity may give your powder room just the face lift it needs to appear modern. See that everything is in good repair, is newly painted and has gotten a general sprucing up, inside and out. This won’t necessarily give you a pricing advantage over less fixed-up places, but it will attract buyers and hold their interest.

Price it realistically.

Set a realistic, salable price when you first list. Forget what you think the house should be worth, or what it was worth three years ago. You must be competitive with other homes that offer the same amenities yours does. Search the websites of your local realtors to determine which general range you think you’re in. You can compare square footage, year built, number of bedrooms and land size with your own. You can see photos of houses on the market and see how yours stacks up. Your realtor can provide you with a list of comparable sales in the last six months and a market analysis to help you more accurately determine price. Remember, with financing tight, for many buyers renting is a better deal than buying right now. You must set a price that makes a buyer’s monthly home-owning and mortgage costs look like a better deal than a month’s rent.

Hire the top producing real estate agent in your area.

Before the bubble burst, you didn’t need the best. Any realtor would have been fine. But not today. Top realtors have the experience and know-how to market a house, even in this market. Ask the manager in your real estate office for the top salesperson. There are one or two top agents in each office. Remember, 10% of realtors sell 90% of real estate. You want the realtor who has a well-conceived marketing plan and who can place your home on as many internet websites as possible – that’s where buyers come from. These websites to which realtors have access are linked to other real estate related websites that offer your home greater exposure. You need a realtor who thinks outside the box and will go the extra mile for you to sell your home.

Accept the offer

If any qualified buyer comes in with a reasonable offer, be prepared to accept it. If your buyer has nothing to sell, has excellent credit and has 25% to 35% to put down, don’t let him or her get away. Your first offer is usually your best offer, because it comes from seasoned buyers who have been out in the market, know comparables and are ready to move. Though buyers are wary now because of economic conditions, mortgage rates are good. In the nine months since January of this year, 150 single family homes have sold in New Castle at an average sale price of $1,163,663, after an average of 177 days on the market. During the 12 months of 2007, 230 single family homes sold in New Castle. Last year’s average sale price was $1,182,708; the average number of days on the market was 192.

Why would you sell or buy now? If you’re thinking of buying up or buying down, this is an ideal time to do so. There are great values out there, and if the market turns around, they won’t be available in the future.

Buying or selling a home in today’s market is not as bleak as it seems. We are a desirable community with excellent schools and an easy New York City commute. Houses are selling in New Castle, with plenty of great opportunities on both sides of the transaction.

Bonnie Golub has lived in New Castle for 37 years and has been a realtor with Prudential Holmes & Kennedy for 35 years. She and her husband Gerry raised three children here, and three of their five grandchildren now attend Chappaqua schools. Her email is .(JavaScript must be enabled to view this email address)