In this Issue:

Selling a Home Fast in a Buyer's Market
Home Maintenance for December

(Please leave us a comment at the bottom of the newsletter.)

Selling a Home Fast in a Buyer's Market

As everyone knows, the housing market has tanked most everywhere. The down market is constantly discussed on the news, in the local and national papers, and is a very popular topic for investment and personal finance blogs and websites.

Believe it or not, depending on where you live, it is still possible to sell your home fast, even in a buyer's market. The trick is to make it better looking, easier to buy and easier to move into than anyone else's home in your market.

In today's buyer's market, there are way more houses on the market for sale than would be during a normal market. Therefore, buyers have far more homes to choose from when looking. After all, why buy a home that needs a lot of repairs when they could buy a similar home down the street (or a neighboring neighborhood) in immaculate condition for about the same price?

Here are some tips you need to heed when trying to sell your home fast in a buyer's market:

1. Prepare Yourself Mentally:

Accept that the market will set the sale terms. Don't take it personally if you don't get the price you expected.

The big thing is you've got to accept what the market is, and make the most of it. It doesn't have anything to do with you personally; it has to do with the market.

Don't expect an extension of the supersonic price appreciation that some markets saw in the last few years. You're just going to feel frustrated if you think, "last year, everyone's house was worth 20 percent more than the year before, so why isn't my house worth 20 percent more this year?"

You're going to want to prepare to be flexible. Luckily, you can be flexible on things besides price. The move-in date, for example. "If it helps you sell more quickly by moving out earlier than you want, that's a good thing. You never know what people might want to do to make it convenient for them. If the buyer wants something that isn't hard for you to give, that's something in your favor.

Maybe the buyer wants to store furniture in your garage before moving in or wants to make the purchase contingent on selling his or her own house. If you have flexibility, you have an edge.

2. Be Prepared to Deal With Picky Buyers

If you're getting ready to put your house on the market, the goal of remodeling, of course, is to recover most or all of your investment in the form of a higher selling price. The key is thinking like a buyer. And what do buyers do? They drive up to a house and look at it. If they're not repelled by what they see, they step inside and look around.

It's even more important when buyers feel that they can afford to be picky.

In a buyer's market, buyers become much more sensitive to things like dated light fixtures. When you walk in and the house has that 1970s amber light fixture, they'll say, 'This house looks old,' and walk out. It's easy and inexpensive to replace that light over the dining room table.

Don't just think about lights. Stained carpets, scuffed hardwood floors, dripping sinks, torn window screens — most of us live with flaws in our homes that we intend to fix eventually. When you put your home on the market, that day has arrived.

You really need to look at making repairs that are profitable in terms of selling the house.

If your hot tub isn't quite functioning properly and the bathroom has old, stained cabinets with ornate pulls on the doors, fix up the bathroom first. Buyers want to see that pedestal sink. If the choice is between replacing the refrigerator and refacing ugly kitchen cabinets, spruce up the cabinets.

3. Educate Yourself About Your Neighborhood's Market.

Talk to neighbors and real estate agents about sales in your neighborhood.

Do homes tend to sell for 2 percent over the listing price, or 10 percent under, or what? Was a house recently sold for a surprisingly low price? Maybe the owners sold it to their own kids, a young family without much money. Or maybe it was a "short sale" to avoid foreclosure. That's a good piece of knowledge to have when a buyer tries to use that low sale price against you in negotiations.

Interview at least two, and preferably three or four, potential listing agents, and ask them to prepare competitive market assessments. The agents will look at comparable homes that have been sold recently and at homes that are for sale now, and recommend a listing price and a marketing plan. Have them walk through the information they used to come up with that estimate.

4. Hire an Inspector

Buyers often make their purchase offer contingent on the home passing an inspection to their satisfaction. Increasing numbers of sellers are hiring inspectors before they put their houses on the market.

An inspector is impartial. He'll be able to tell you if the roof needs work, or small electrical things need to be done, or plumbing things. Once you've identified and fixed the problems, it makes the house that much more attractive to a would-be buyer.

An inspector might spot flaws that would be obvious to a buyer, but that you no longer notice. A good real estate agent does the same, but an inspector will look deeper.

5. Consider Paying Discount Points

Paying points is an incentive you can offer to a buyer.

Let's say the buyer wants you to drop the price by 3 percent. You're firm on the price but are willing to be flexible by working with the buyer's interest rate and tax bill.

You offer to pay 3 discount points and lower the buyer's mortgage rate three-quarters of a percentage point, give or take a quarter-point. By paying the discount points instead of selling for less, you get your price, the real estate agents get bigger commissions, and the buyer makes lower monthly payments and gets to deduct the points from income taxes.

That's right. You pay the discount points, but the buyer gets the tax deduction. It's a win-win-win-win deal.

Whether or not you pay the buyer's discount points, you put yourself in the right frame of mind by merely considering the option. It makes you think like a buyer — and that gives you a competitive edge.

Home Maintenance for December

We continue our monthly updates from The Weather Channel's home improvement expert Danny Lipford, that not only reminds you of what needs to be done and when, but also shows you ways to save money.

December

Winter is here…

Make sure extension cords for holiday decorations that are used outside are rated for this use. All outdoor lights should also be plugged into a ground-fault-interrupter (GFI) receptacle.

Add adhesive-backed nonskid strips to stairs and other dangerous areas, because you will be indoors more. Keep walkways free of ice.