How to Sell a Home in a Buyer’s Market

While it’s too early to truly gauge 2006 Florida home loan numbers, one thing is for sure: this is a buyer’s market. As the rate of appreciation has slowed and houses have been sitting on the market longer, investors are shying away because it’s harder for them to sell their properties, let alone make a profit these days.

Even home builders are becoming more competitive. According to the National Association of Home Builders, 40 percent of builders were offering non-price incentives in December - anything from free home upgrades to free landscaping to free flat-screen TVs.

In this economy, what is a home seller to do?

Change Your Expectations

The bubble hasn’t burst, but the market has certainly slowed. Expect that you won’t be able to sell your home right away. You also might not be able to make as much of a profit off the sale as you would have six months ago. Therefore, you must be prepared to drop your asking price more than you expected, or price your home slightly below what the comparable sales prices of other properties in your area.

Consider Paying the Buyer’s Discount Points

Instead of lowering your asking price, you might also think about paying the buyer’s discount points. If you’re flexible enough to help the buyer with his interest rate and tax bill, it could go a long way to getting your home sold faster.

One discount point will lower the buyer’s mortgage rate one-quarter percent. The buyer receives a lower monthly payment, while being able to deduct the discount points from their income taxes; the real estate agents get bigger commissions; you get your asking price and everybody wins.

Refinance your Florida home loan

If, after much consideration, you decide NOT to sell your home, consider refinancing. If you have an adjustable rate mortgage that’s going to adjust soon, it will probably adjust to a rate that’s higher than you could get on a fixed-rate mortgage. So why not refinance to a fixed rate? You’ll be saving yourself from the headache of higher monthly mortgage payments.

As a seller, it’s possible you may not make as large a profit off the sale of your home in this cooler Florida housing market. And your home might not sell as quickly as you’d like. However, there are still tactics you can follow in order to satisfy all parties involved in this Florida home loan transaction.