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Advice to Home Sellers

June 24, 1990

This is a request to homeowners who are thinking of selling in 1990.

If your home is for sale and has not attracted any offers, rethink your motivation. If you would like to sell versus have to sell, you'd be much better off taking your home off the market. If you have to sell, price your home according to the sales made in 1990, not 1989 or 1988.

In many neighborhoods, homes that sold for $350,000 in 1988 are now selling for under $300,000. 1990 has been a buyer's market and buyers are not paying last year's prices for homes. Less than one-third of the homes for sale in 1990 have sold. About half of the rest will not sell. However, at a right price, almost every home will sell.

Average sales time for a $275,000 home is almost 120 days (according to data from May sales from the San Fernando Board of Realtors). With the longer time on the market, the cost of selling--advertising, mailing, promotions--increases per sale and the net profit decreases.

So, homeowners, do yourself a favor--if you must sell in 1990, price it right. If you can wait out the slump, please do. Besides, buyers are making low offers as well as various demands on sellers and many deals are broken as a result.

If you are a buyer, 1990 is your year. Prices are more favorable than in the last two to three years.


North Hollywood

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