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Buyers go on the offensive in the house buying game

By Broderick Perkins

If Silicon Valley's housing market was a basketball game, the game would be tied with sellers playing a tired team of second-stringers and buyers coming off the bench with five fresh starters.

When buyers did close a deal in August, they were playing tight, only paying single-family home sellers 99.4 percent of their asking price, compared to 100.3 percent a year ago. The game also improved for condo buyers as they paid only 99.7 percent of the list price, down from 102.5 percent a year ago, according to Richard Calhoun, real estate broker with Creekside Realty in San Jose and publisher of the Bay Area Real Estate Market Newsletter.

Selling a home is no longer a slam dunk either. A year ago homes sold in weeks. Now they take more than a month.

Silicon Valley's single-family home sales in August were down to 1,080 for the month, compared to 1,404 a year ago. Condo sales also were off, slipping from 594 a year ago to 460 this August.

If you are a home seller and want to stay in the game, you are going to need some new moves.

"After half a decade of unprecedented growth in the housing market, it looks like home buyers are finally holding the cards as we move into a buyer's market," said Holly Slaughter, consumer experience expert at RealEstate.com.

Slaughter offers a game plan for sellers. Local agents added assistance to firm up the strategy.

* Hire an experienced coach and follow her or his instructions. "Choose one who has been through a recessionary market. Having a real estate agent with experience in these types of selling conditions makes it a lot easier to sell," said Steve Suchow, an associate broker with RE/MAX Valley Properties in San Jose.

* Bring in an assistant. "A large number of home sales fall apart after the buyer's inspection. Hire a professional to inspect your house from roof to basement before you put it on the market, giving you plenty of time to make repairs or price accordingly," said Slaughter.

* Respect your opponent. Treat every consumer and every agent as if they were the person willing to pay the highest price for the property.

"Realize that in a declining market, a low offer today is likely to be a high offer in 60 days, so give careful consideration to any offer even if it's less than you expected," said Calhoun.

* Don't foul out. Truly competitive prices that reflect market conditions are the game winners. Slaughter suggests getting an appraisal to help set the asking price.

"One of the biggest mistakes I see sellers making today is in allowing their listing to be 'bought,' making the hiring decision based only on which agent estimates the highest listing price. Mispriced properties that languish on the market ultimately sell for less than they would have if they sell at all," said Stefan Walker, an associate broker with Alain Pinel Realtors in Los Gatos.

* Give up some free throws. Negotiate with giveaways, concessions and incentives.

"Don't offer concessions to the other real estate agent. The agent does not make the buying decision; the buyer does. If you are going to throw something in, make sure it goes to the buyer," said Suchow.

* Show some razzle-dazzle. Curb appeal enhances first impressions. Removing clutter sends those impressions into overtime. Staging the game puts more points on the board.

"Sellers who really want to sell need to make their home that 'good deal.' It needs to be in great shape--absolutely better than everything else," said Mary Pope-Handy, a real estate agent with Intero Real Estate Services in Los Gatos.

* Take your best shots. Because so many consumers browse for housing, post plenty of high-quality photos of your home's interior and exterior online.

"Print out a nice report of your home. Add plenty of pictures, a detailed list of the home's amenities, a list of local amenities, third party information on schools, etc. Leave a couple of bottles of water for them to take from the open house as well," said Slaughter.

* Know your way around the court. Know your neighborhood.

"Part of my listing presentation focuses on current, local market conditions. I educate them on the importance of competitive price, the average days-on-market in their area, and I make suggestions on the presentation of their home for potential buyers," said Shawneequa Badger, a real estate agent with Century 21-Alpha in San Jose.

* Spend some time on the bench. Most buyers want to feel comfortable when they're considering buying your home. Hanging around during the open house may run off potential buyers.

* Bring in some new plays.

"I also suggest holding an open house throughout the week instead of just the weekends. There is nothing better that will capture buyer's attention when you are the only open house in the area," said Badger.

Real estate writer Broderick Perkins, executive editor of San Jose-based DeadlineNews.Com, writes regularly for this newspaper.