February 5, 2009 - by Chris Somers
  
Sellers

6 Reasons Why Sellers Shouldn't Wait to List
 
Should I list now or wait until spring?

I received a call yesterday from someone who said, "Chris, I know it's not a great time to sell. Should I put my properties up now or wait until spring?"

The first part of the answer depends on a seller's personal goals. If a seller has no place to go, plans on purchasing in the future or has other external factors that push their timeline out, it may make sense to wait until those answers are figured out and there's less uncertainty. This can be the case for any seller at any time of the year.

But my seller has several properties to sell - one is her primary occupancy and two are investment properties. She already plans on renting a place temporarily if her property sells before she relocates to North Carolina. So what should she do? List now or wait until spring?

To me, the answer is obvious: List now.

There are six main advantages for a seller to list now (in the winter) instead of waiting until spring:

1. Inventory - In the spring, how many other sellers will end up using the same strategy? They may have been waiting a year or so until the market got better, or just figured it was the best time to list their property. So come March, April and May, there will be that much more competition to potentially compete with. By listing now, you avoid all that potential competition.

2. Motivated buyers - Often, many buyers will just wait until spring to start their search. They will just be starting the process. Believe me - the buyers who are house hunting during the holidays and in the winter are serious and motivated. By listing now, you'll potentially get one of these buyers to write a deal on your property.

3. Mortgage rates - "Rates, rates, rates," as my friend Richard Stabile likes to say. The mortgage rates right now are at three-year lows. The average 30-year mortgage is in the low five-percent range. This is actually causing an uptick in buyer traffic and activity. I think November, December and January will end up being busier months for many agents than July through October 2008, which is an anomaly. By listing now, you'll catch this wave of buyers shopping for houses since mortgage rates are so low.

4. Buyer confidence - Buyer confidence is starting to shift, which is also increasing buyer traffic. Another cause for increased traffic is the $7,500 first-time homebuyer tax credit, which expires in mid-2009. A buyer has to settle on their property before that time-frame. By listing now, you're taking advantage of this trend of increased buyer traffic.

5. Accomplish your goals now - When it's all said and done, wouldn't you rather have your house sold by March or April, and move on with your life rather than just listing your house then? I love it when we accomplish our goals ahead of schedule - it's a great feeling. By listing now, you're positioning yourself to accomplish your goals sooner rather than later.

6. Reverse fear - Not to buy into the media's doom and gloom, but there's always a risk that the housing market could deteriorate more instead of picking up by mid-2009. In addition, the reality of the market getting that much better in a short period of time is remote. I doubt that waiting until spring will yield a sales price that could be higher by 10 percent. In fact, it could even be a little worse if you think the economy is going to deteriorate as the unemployment rate continues to skyrocket. By listing now, you avoid that extra layer of uncertainty.