Jennene Knerr-Shanholtz

Selling in a Buyer's Market

Selling in a buyer's market means you've got more competition than the first round of American Idol tryouts. But instead of trying to impress Simon enough for him not to berate you, you have to impress buyers enough to get them through your front door.

The cardinal rule of selling in a buyer's market? Don't overprice your home. When competition is fierce, most overpriced listings don't even get face time from buyers.

"If your home is not among the lowest prices in your area, it might not get any showings," says Elizabeth Weitraub, (credentials). "Sellers will get tons of offers if the home is priced right, and that will drive up the price."

In fact, overpriced homes often end up making less money than those that had the right price tag the first time around, because the sellers have to keep lowering the price to chase the market down. So how do you avoid this financial faux pas? Consult an appraiser and 3 or more real estate agents to find out your property's market value. Remember, all the similar homes in your area are your competitions, including price-slashed foreclosure properties. Brace yourself the recommendations might be less than you think.

Still tempted to price it over the appraised value? Take a deep breath or a jog around the block, then decide if you're really ready to sell. Consider putting the sale on hold if you can't accept a lower price. If you really need to get the house off your hands, price it right or prepare to wait, wait, and wait some more.

Buyers in a down market tend to be first-time and second home buyers, rather than flippers looking to make a quick buck on a home. But that doesn't mean they're uninformed, says Brett Brown, President of the Naples Board of Realtors and a Realtor in Naples, Florida.

"Buyer are more educated now," says Brown. "They'll ask for the listing history, and an astute buyer will know that a seller who has been on the market for months is desperate and they can make a lower offer."

While pricing is the most important thing in a buyer's market, it's also important to have your home in the best possible shape to give it the competitive edge.