Birmingham Alabama Home

Cooling Temperatures Bring Cooling Home Sales
by Edwin Menge

Cooling Temperatures Bring Cooling Home Sales

Buying or Selling Birmingham Alabama Real Estate

It's not just the weather cooling in the Birmingham, Alabama area!  Home sales in Jefferson and Shelby Counties in Alabama have slowed down in comparison to last years volume.  When comparing home sales from October 2005 to home sales in October 2006, the volume of homes sold in Jefferson County in October decreased by 13%.

What is more interesting is the month to month increase or decrease in home sales which reflect the current Birmingham real estate market conditions.  Shelby County Alabama has experienced a 9% slowdown in home sales from September 2006 through October 2006 with Jefferson County experiencing a slightly higher decrease during the same period.

What Does This Mean to the Home Buyer?

Simple.  As a home buyer in Birmingham, Alabama, you have the ability to scrutinize each home for sale to ensure you are purchasing the right home for you.  Armed with the knowledge that there are sellers eagerly awaiting your offer can give you better negotiating power and flexibility.

Let me give you an example.  In new construction developments, most builders want to sell their homes without having to make extended interest payments waiting for the right price point.  You can use these situations to your advantage when negotiating the purchase price.  Often times you will see incentives such as offers to pay portions of the closing costs.  If that is not your concern, try a different angle.  Negotiate upgrades or amenities into the contract price.  One thing to remember is to keep your demands realistic.  A good real estate agent can be a great asset when negotiating in this manner.

Selling in a Buyer's Market

In a buyer's market like the one currently in Birmingham, Alabama, in order to market and sell your home in an effective and timely manner, you need a professional.  I am not saying it cannot be done without a real estate agent, just that a professional real estate agent with the experience and know how will be able to successfully market your home during these market conditions.

Here's another example. In a popular neighborhood, a home owner decides to sell their home themselves.  The "For Sale By Owner" sign is placed in the yard.  The sign remains where it was planted for three months.  Their neighbor, in basically the same house, lists their home for sale with a professional RealtorŪ.  An open house,  magazine advertisement, directional signs, and MLS submission later, the home is sold.  The original sellers have abandoned their "For Sale by Owner" sign for the sign of a different realty company than their neighbors.  No open house, no advertisements, no directional signs, just listed in the MLS.  Today there were two moving trucks on the street.  One truck for the family moving to their new home without having the worry about the sale of their home.  The other truck for the family moving and praying they won't have two mortgages for very long.

So what can a seller do?

In a buyer's market, a home seller needs to be sure their home is READY to be sold regardless of whether it is listed with a professional or for sale by owner.  Since Buyer's will scrutinize every detail in the homes they are viewing, you need to eliminate areas that may give rise to purchase objections or generate offers that are below fair market value.

• Clean: Make sure your home is ready for guests.
• Do Minor Repairs Before Placing on Market
• Mow the Grass
• Plant Flowers
• If you know you need new carpets, replace them or have them professionally steam cleaned BEFORE showing.
• Organize your closets and kitchen cabinets
• Differentiate your home from similar homes by accenting your homes best / unique features. (If you are unsure how to do this, contact a professional "staging company", they make a difference!)
• Hire a Real Estate Professional.

The last bullet point you might think to be self serving, it is not.  Having a professional market and sell your home is a wise investment.  Reference the example above.  By attempting to save money and sell their own home, the "For Sale by Owner" sellers have incurred advertising expense, additional utilities, and now a double mortgage payment.  Not only that, they have since listed with a real estate company.  I could argue that if they had understood the current market conditions which favor the buyer and had hired a professional real estate agent in the beginning and priced their home competitively, their home would be sold.

Formulate a Strategy

As the housing market cools off in Birmingham, Alabama, buyers and sellers alike need to be realistic in their expectations.  They also need to understand the current market conditions and incorporate them into a strategy to successfully obtain their goals.  Bottom line, if you have the experience and knowledge, negotiate your own sale or purchase.  However, if you are uncertain or unfamiliar, hire a real estate professional to represent your best interests.
 

About the Author

RealtorŪ in Birmingham Alabama