For Sale by Owner – Delay if Possible, Sell Quickly if Not
November 10th, 2009 by 
Joseph Smith
If you are a prospective for sale by owner seller, you and other homeowners are being advised by real estate analysts to postpone your listing for some more years if possible. But if you cannot hold out any longer, you must decide quickly because home prices are still falling. Prices may stabilize next year, but prices are not likely to increase significantly.
As you already know, if you can postpone your sale for a couple of years, you can increase your chances of selling your home at a higher price.
But if you really need to sell now, do not compete with foreclosure homes on price, because you will lose so much if you attempt to win. Compete against foreclosure homes on other aspects, such as property condition. Make your house move-in ready. Just making some low-cost improvements such as installing a new carpet, repainting the walls and having a general cleaning will give your house a new look.
You can also emphasize the fact that you and your buyer can close quickly on your for sale by owner home and that your buyer can move in immediately because you are ready to move out.
If you are still thinking whether to sell now, look at some statistics. Housing analysts say that the housing meltdown may be nearing its end and that home prices will fall further next year by another five to ten percent before stabilizing.
Mike Larson, a property analyst and consultant at Weiss Research, said that home prices will drop further, but not as sharply as before, and then stay flat for most of next year until 2012. With this forecast, you can consider if you can hold out until 2012, or you can try to refinance while mortgage rates are low and wait.
There is also the possibility that home prices will go down further if the Fed does not contain mortgage rates by not purchasing mortgage securities and if private investors ignore real estate investments. Mortgage rates could soar to 6 percent if the Fed does not control the rise.
If you plan to refinance so that you can hold out for at least 5 years, you should refinance now as mortgage rates are still relatively very low. After you refinance, you should not make costly home improvements because it will take time before you can sell your for sale by owner home at a good profit level.
