A recent survey by the California Association of Realtors found the following situation: 2 out of 3 Sellers in 2009 changed agents before getting their home sold! I must say initially that was a startling statistic and condemnation of my profession, but as I thought about it, I came to understand.

Here are my thoughts: Even though prices were deteriorating (and that definitely continued to happen last year), both Sellers and agents set the listing price too high and chased the price down. Homes that would have sold if priced correctly eventually did not sell at all or sold at a lower price than would have been possible early in the listing period. Eventually Sellers got angry with the whole situation, fired their real estate agent, and either stayed with the property or found someone else to market it.

It is not there are not Buyers. Right now, in the Portland Tri-County area there are over 3200 properties in Sale Pending status. The Buyers are there, and they are concerned the $8000 Tax Credit will go away before they get an accepted offer and complete their purchase.  They are definitely looking at homes they could purchase.  And the Buyers are usually not Investors; last year almost half of all transactions involved 1st Time Buyers

If you are not getting people inside your home ( and if you are not getting people to physically go through your home you are not even close to getting it sold), and want to take advantage of the present incentive Buyers have with the tax credit, maybe it is time to fire your first agent (you)and hire the one who will get your property sold. Think about it…

Awhile back Congress came up with a great idea for stimulating the housing market: provide a $7500 tax credit for 1st time homebuyers (read ‘have not owned a home the previous three years’), but make that homebuyer have to pay back the tax credit over the next 15 years. That credit went active and homebuying went up. When it came time for that program to end, a second tax credit stimulation was launched that was even better. The credit increased to $8000 and it became a true credit; the homebuyer did not have to pay it back. When time came for that to go away, Congress extended it and added a bonus. If someone already owned a home and bought another, let that homebuyer have a $6500 tax credit.

Guess what?  Homes kept selling, and many homes at the starter end of the spectrum even got multiple offers. Sales continued fairly brisk right through the normal winter slowdown. Well, the end of the tax credit incentives is in sight. They are scheduled to go away April 30, the deadline to have an accepted offer in hand, and the property must close by June 30. What will really happen is anyone’s guess at this point.

However, as a seller you should be using the expectation of the tax credit program ending as a motivation for anyone considering your home. Do your flyers communicate that the homebuyer tax credit applies to a purchase of your home? They should, and now they should be alerting your prospective buyers that the program is scheduled to go away in just a few more weeks, and those buyers need your approval to their offer very soon.

It can be hard as a For Sale By Owner to know whether there is any activity happening for anyone trying to sell their home. Real Estate agents can tell by looking at homes within the Multiple Listing Service that have the status ‘Pending’. That means the seller has accepted an offer and escrow is in process (period when inspections, appraisal, title and loan finalization happens). It is so accurate that if the seller is doing a short sale the property does not become ‘Pending’ until the lender has approved the sale in writing.

Right now, in the Portland Metropolitan area there are just under 3,000 residential homes in ‘Pending’ status. That says there is activity. However, how can you know if there are Pending Sales in your area, or for homes like yours?

There is a source, and it is free. I provide it, with no obligation as long as your home is not listed (unless with me, of course). I will update you every week, and not just with Pending Sales, but I’ll save that for a different post. Just contact me at Chip@OregonFSBOCoach.com and I will set you right up!