By Andrew Massaro, CFP®, CFS

Director, Financial Planning, Edelman Financial Services

Two years ago, you signed a contract to build your dream

home. It’s nearly finished, and you move in soon. But you

haven’t sold your current house yet, and you’re starting to

worry.

It wasn’t supposed to be like this. Two years ago, houses were

selling in a day, for more than their listing price. You figured

you’d be able to sell your house easily, just in time to move into

your dream home.

My, how things have changed. Your house isn’t worth as much

as you thought it was, and you won’t be able to sell it as quickly

as you’d hoped. But all is not lost. Let’s just work through the

problem as best we can.

First, if you are trying to sell your home yourself, stop. This is

not the time to go it alone. Immediately list your home with a

Realtor. But not just any Realtor. Choose one who was in the

business in the early 1990s (the last time the real estate market

was soft), who can use his or her experience to help you in this

market.

If your house is already listed, ask yourself whether you have

implemented all the suggestions your Realtor has given you.

Good Realtors offer excellent tips that can make your house

“show” well, boosting the likelihood it’ll get sold.

Start with the yard. Curb appeal is critical: The way your home

appears from the street is essential to getting a prospective

purchaser interested in buying your home. Once inside, how

does the place look? Your kitchen cabinets, appliances and

bathroom fixtures need to be modern and in good condition,

because few buyers want the hassle of replacing carpets,

painting walls, removing wallpaper or making repairs.

Remember, your biggest competitor isn’t the home for sale over

on the next block; it’s the new home being constructed down

the street. In new construction, all a buyer needs to do is move

in. So make sure that moving is the only thing your prospective

buyer needs to do too.

Try not to move out of your old house until it is sold; an empty

house rarely shows as well as those that have a lived-in feel.

An empty house also communicates to the buyer that you’re

desperate to sell, which will reduce the number (and price) of

serious offers.

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Most important, have you accepted your Realtor’s advice

regarding the asking price? You should price the house to sell

in 30 days, and in this market, that could require you to lower

the price. If you are shocked by the price suggested by your

Realtor, you’re probably headed in the right direction. The

reason: Most sellers think last year’s prices are still valid.

They’re not. You won’t get the price that you might have gotten

in 2005, or even in 2004. Instead, you’re more likely to be

offered a price similar to those offered in 2003.

Ask your Realtor for a marketing plan. The key is to get other

real estate agents to tour your home. Talk with your Realtor about open houses, and

consider incentives to encourage other agents to steer their clients to your home. Sellers

have been known to offer everything from extra commissions to vacation trips to bigscreen

TVs and cars!

If it’s becoming clear that you won’t be able to sell your house before you settle on your

new home, talk with your financial advisor to figure out how you can best handle the two

mortgage payments you’re carrying.

In this market, the houses that sell are the ones that are in tip-top shape, are priced right

and have maximum exposure to potential buyers. If this doesn’t sound like your situation,

you have work to do.

updated 04.03.07

Don't wait to take

advantage of

historically low

interest rates.

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