TN Real Estate Blog


Selling Your Home in A Buyer's Market

Bill has set out some great examples of why NOW is a great time to sell whether you are moving up OR down. I couldn't have say it better. Thanks Bill

There are many who have thought about selling their home but have not due to the decline in market values over the last few years. This is understandable UNLESS you are going to be buying another home under the same market conditions!

Sure market values have dipped quite a bit here in Metrowest Massachusetts. The value of homes in many towns has dropped by 20% or more since the peak in 2005. The $600,000 home you bought in 2005 may now have a value around $500,000. The point is if your are staying local it does not really matter. Why? Simple... you will be buying under the same market forces that you did while selling your home.

Here is a simple example. You bought your home for $600,000 and using a round figure of 20% it has dropped in value to $480,000. You have lost $120,000...ouch! Not really because if you are moving up in the market what used to be an $800,000 home is now worth $640,000.

If values had remained flat you would be going from a home valued at $600,000 up to a home worth $800,000. A difference of $200,000. In the present buyers market scenario the difference is $480,000 to $640,000 or a spread of $180,000. If you are moving up you saved yourself $20,000.

What if you are moving down? Lets turn the example around. You owned an $800,000 home that is now worth $640,000. It is too large for your needs and has become expensive to heat, maintain and pay taxes on. You desire something more manageable. Well guess what the house that you planned on buying three years ago for $600,000 is now only going to cost you $480,000. So what has happened is you have lost $40,000 in buying power. A 20% loss on 800k = $160,000. A 20% loss on $600,000 = $120,000. $160,000 - $120,000 = $40,000

So moving down isn't ideal but a loss of $40,000 is certainly much different than taking a paper loss of $160,000 especially if it is going to make your payments and cost to maintain the home much more reasonable.

When a client asks my advice this is the kind of information I ask them to look at when considering what is the best move for them. You would run this same kind of analysis if you were going to relocate to another area where the values of homes could be a lot different.

The X factor as of this writing is the historically low interest rates. This is a compelling reason to make a move now before they move up at some point.

If you come to the conclusion that selling your home is the right move there are three very important keys to success you need to pay attention to in a challenging Real Estate market.


Pricing your home properly                                                                                                                 

This is the single most important thing you can do to ensure you achieve your goal in a timely fashion. Your Realtor should be going over in detail the most recent comparable properties that have sold. The sales date becomes extremely important when the market is still in a downward slope. Pay close attention to when the sale took place. A home that sold even a few months ago may not sell for the same amount of money today.

It is always best to use the most recent sales. When none are available a good Real Estate agent should be able to factor in an appropriate price adjustment based upon the difference in time when the comparable property sold.

Be careful to be realistic when you are looking at the data. Sellers are notorious for viewing their homes differently because of emotional attachment. Look at your home through the eyes of a buyer.

The fact that you used heavy duty nails on the deck you built is not going to bring you $5000 more than the neighbors similar home down the Street.


Picking a good Realtor                                                                                                                      


When the market was booming and all you had to do was put a sign in the yard and add the home to MLS, picking a good Realtor was less critical. Not so in today's Real Estate environment where there are far few buyers in the market.

One of the critical components to picking a Realtor should be their ability to create a wide net to attract buyers. Over 85% of all buyers today find their home from an online search. You want an agent that can give you a dominant online presence. Your home should be displayed on all the sites that garner the highest amount of Real Estate traffic.

Some of the better Realtors will be using blogging and video as a means of creating interest. Search engines love blogs because they are not "static". A blog can be updated with fresh content daily if desired. Video not only enhances the presentation of your home but it can usually be found very easily online.

You should be looking for a Realtor that not only has a website but one that can be found in the search engines for terms specific to Real Estate in your market.

A good method of checking on the agents marketing skills is to "Google" their name. There should be pages and pages of results with an agent that knows how to market your home well online. If you don't see much I would really start to question the agents ability to attract the most buyers.

The premise is this: If an agent does not know how to market themselves how could you possibly expect them to do a good job marketing your home?

Marketing of course is very important but you should also look at the agents track record. References, market share, and an agents list price to sale price ratio are all worth consideration. Here are some excellent questions to ask Realtors you are interviewing.

Be careful of the agent who tries to "buy" your listing with an over inflated list price. What you will be stuck with is a Realtor with poor skills and a home that doesn't have a prayer of selling. This is why the agents list price to sale price ratio becomes important. It should also be pointed out that the ratio should be from the original list price.


Make your home presentable


Is staging your home with a staging company a must? I do not believe it is. Does it help you sell your home in a timely fashion? Absolutely! At the very minimum you should make sure your home is presentable. It should be neat and tidy. Having a clean and organized home that is visually appealing is important. There should be no ungodly smells present.

Getting rid of clutter and organizing closets are usually activities that will help generate a sale. Curb appeal is also important. Your yard and landscaping should be well maintained. Walk ways should be kept clear and your entry way should be spotless. 1st impressions go a long way in selling a home.

These are the basics. A professional staging company can really make your home stand out in a good way.


In the article top ten mistakes to avoid when selling your Massachusetts home there are seven other pitfalls to watch out for as well.


The above information on selling your home in a buyers market was provided by BillRE/MAX Executive Realty Hopkinton Gassett, the team leader for the #4 RE/MAX Team in Massachusetts in 2007. Bill can be reached via email at or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 22+ Years. Bill's office is conveniently located in the center of Hopkinton MA at 77 Main Street.

I have a passion for Real Estate and love to share my marketing expertise! I would welcome the opportunity to earn your business.

For Metrowest Massachusetts Real Estate and homes see Metrowest Mass Real Estate. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my MLS Property Finder Site.

I service the following towns in Metrowest Massachusetts: Hopkinton, Milford, Upton, Southboro, Westboro, Ashland, Holliston, Mendon, Hopedale, Medway, Grafton, Northbridge, Uxbridge, Franklin, Douglas, and Framingham MA.

Click here to view Bill Gassett's Real Estate profile.




Subscribe in a reader



Building lasting relationships by helping people move in and out of Metrowest Massachusetts for the last 22 years.

Comment balloon 1 commentTiffany White • December 08 2008 10:59PM
Selling Your Home in A Buyer's Market
Bill has set out some great examples of why NOW is a great time to sell whether you are moving up OR down. I couldn't have say it better. Thanks Bill There are many who have thought about selling their home but have not due to… more
All Aboard the Real Estate Roller Coaster - Change IS Coming!
Mortgage interest rates are around 5. 5% for a 30 year fixed-rate loan and there's talk of rates going even lower I have also heard the prediction of rates dropping into the 4% range soon. My clients have been asking me if that's true. I really… more
Christmas Lights in Franklin Green
Many Franklin Green residents have their homes all lit up for Christmas. I drove around tonight and admired some of the elaborate light displays in Franklin. Check out the slide show below! View Franklin TN Real Estate here! … more
Multiple Offers… In This Nashville TN Real Estate Market?
Just when I thought most Nashville area real estate buyers were on the fence, I had the opportunity to represent a ready, willing and financially able buyer to bring one of many offers on a house that was recently listed. Yes, multiple offers can… more
Falcon Creek Real Estate Franklin TN Oct 2008 Market Report
Falcon Creek Subdivision is located off South Carothers Parkway on the east side of Franklin, TN. Community amenities include a swimming pool, tennis courts and common green space. Falcon Creek home sizes range from approximately 1, 200 to 2… more
Spencer Hall Real Estate Franklin TN Oct 2008 Market Report
Spencer Hall Subdivision is located off Highway 96 on the west side of Franklin, TN. Community amenities include a swimming pool, playground and several ponds in the common areas. Spencer Hall home sizes range from approximately 1, 600 to 4… more
Home Selling Tips - Franklin, TN Real Estate
Curb Appeal Buyers develop an opinion about your home within a few seconds of walking in the front door. You only have one chance to make a good first impression and the clock starts ticking as soon as they drive up to the house. Is the… more
Home Buying Process - Franklin, TN Real Estate
Home Buying Process - Franklin TN Real Estate Home Search There are various online resources available to search homes for sale. As a Realtor, I have access to detailed information that might not be included on public home search… more
Franklin Green TN Real Estate - Oct. 2008 Market Report
Franklin Green Subdivision is located on the west side of Franklin approximately two miles from the historic downtown square. The community includes over 55% undeveloped common areas including open, grassy fields and walking trails in the… more
Franklin Green TN Halloween Treats
Franklin Green was a buzz Friday night with frightful sights. Franklin Green's Social Committee hosted the annual Halloween event by decorating the pool area and providing candy and glow necklaces. A professional face painter was also on site to… more