As the Market Turns

How to Buy and Sell in a Changing Real Estate Market

As markets begin to turn across the country sellers and buyers should look for experienced agents who have been through different business cycles. Although we haven't experienced significant downturns in the Santa Clarita real estate market yet, there are clear signs that some homes are overpriced compared to the competition and to prior sales.

Inexperienced agents are the last to know when a market is turning, and are the least equipped to deal with it. Often they are afraid to go back to the seller and recommend a repositioning in the marketplace because just a few short weeks ago they recommended a certain listing price. They tend to try and create something out of nothing, all the while the seller is getting further behind the market as new listings enter the market and old ones reduce their price. You never want to get caught chasing the market down.

Inexperienced buyer agents may not realize the market is turning and you could end up paying a higher price than you should in a declining market.

By choosing an agent who has experience, you'll maximize what you get for your home, and you'll sell it much faster. As a seller, you're really in competition with all the other sellers out there for the most qualified buyers. Too many sellers believe they're in competition with the buyer, which really isn't the case.

Always call the most market-savvy agent you can find rather than going with a "newbie". Chances are, they've seen the up's and down's of your marketplace, and they won't be surprised by what happens next. It's your home, and a large part of your life savings. Don't gamble it away with a newer agent who doesn't know.

85% of agents in the marketplace today have only seen 1 business cycle. In a Boom market, everyone gets lucky at some point, and if you're wrong, the market will eventually catch you. Simple supply and demand economics take over, and because there are many buyes for your home, if the agent screws it up, there's always another buyer to practice with.

In a changing or declining market, this isn't so. You'll want an agent who's had all the practice and is ready to pass the test.

This article courtesy of Brett Ellis.

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Linda Slocum
HoneyStartPacking.com
Santa Clarita Real Estate