Tuesday, December 18, 2007

TAKING A BREAK FOR THE HOLIDAYS

The holidays can be an exciting time of year. Parties, family visits, fresh snow, shopping and bright lights all contribute to this being a time of high energy.

It can also be the perfect time to slow down. A time to reflect on the past and dream about the future. A time to take stock of your life and make adjustments.

If you are a home seller, it can also be a good time to take a break from the market. I often recommend this to seller clients, especially if any of the following are true:

1) You’ve been on the market 6 months or more.
2) You’ve been on the market a short time “testing the waters” to see if you can get an optimistic price.
3) You’ve not received any written offers.
4) The holidays are a busy time for you—parties, family get-togethers, shopping, travel, etc.
5) It’s difficult to keep the house clean and uncluttered for showings because of #4 above.
6) You were planning to complete some of those fix-ups to make the home show better.
7) There is not a compelling urgency to sell now versus 2 months from now.
8) You’re just tired of living in home for sale and a break would be refreshing.

The days between Thanksgiving and the end of January are the traditional dog days of the residential real estate market. While it is true that homes can sell at any time of the year, it is also true that this time of year is the slowest. Especially if you’ve already spent considerable time on the market, taking a break at this time of year is a low-risk undertaking—if buyers haven’t been breaking down the doors during the more active times, chances are you won’t be missing them over the next 6-8 weeks!

Another reason to take a break is to reduce the perception of being “shop-worn”. Buyers usually know how long you’ve been for sale—they ask their Realtor—so taking a break and starting over gives your property a bit of fresh look. It actually does look better to have been on 6 months and off 2 months then back on 2 months than it does to have been on continuously for 8-10 months. The reality is that once you are “on the market”, market time is your enemy—the longer you have been out there without selling, the more likely a buyer is to shy away. Right or wrong, the perception of buyers is often “No one else has bought it—so there must be something wrong.”

True, there is the risk that a buyer may come along that would have been suitable for your home had you still been active on the market. It’s a strategy call. Do you risk missing that buyer or do you risk showing up to all prospective buyers as a home with lots of market time without a sale? If you can stand the wait, I recommend the latter. It gives your home a fresh start. It gives you a fresh perspective. It’s worth considering, at least.

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