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As the inventory of homes nears a 10-year high, the cooling housing market is upending the conventional wisdom that guided buyers and sellers during the housing boom.
Here are some new tactics:
1. Sellers are advised to price their homes in the bottom 25% of comparable properties.
2. First-time buyers shouldn't overly stretch their finances expecting rising prices. Take advantage of higher inventories of unsold homes to negotiate for a better deal.
3. Relocating employees should look for a home that will be easy to resell if they are transferred again soon. Stick to houses that are in top-notch condition and in an excellent school district. Shy away from buying a home in a brand-new development because you will be competing with new construction when you sell during the next job transfer. Be aware that employers are enforcing policies that require transferees to price their homes close to the appraised value.
Source: The Wall Street Journal, March 28, 2006
