As much as some people might like the idea of going
back to a time 12 to 24 months ago, or more and
selling in that market, reality prevents us all from
doing that. What we can do is learn from recent
experiences so that we are better prepared for the
future.
There's a saying among stock market investors that
goes, "Your first loss may be your best loss." I think
there is truth to this remark and, with some
modification, there is application in the real estate
market as well. What it means is simply that if you
purchased an investment, expecting it to go up and
instead it goes down, don't wait for it go back up, but
recognize your mistake and sell, before it goes lower.
Get Ahead of the Market
In real estate the idea is slightly different. If you are
planning to sell and the market has turned downward,
resist the idea that you could have sold for more 6
months before and go ahead and sell now before the
market declines more. I would go further and
suggest when selling in a declining market get a head
of the
market - pricewise - and avoid the common practice
of following the market. Rather than set your asking
price slightly above today's market in hopes of finding
a buyer who will pay that price, set a price slightly
below and work for a quick sale, before prices slide
further.
What happens in all too many cases is sellers who
set too high a price hoping for a good result keep
ratcheting their price down, but find themselves
always trailing the falling market. In the end they get
frustrated and either withdraw from the market totally
or they dump the property for far less than could have
been obtained had they been more aggressive in
setting the initial asking price.
