We’ve all heard about the cash for clunkers program and due to human nature the bulk of the purchasers for new cars waited until the last minute. That created a surge of car sales right up to the very last second prior to the deadline.

The real estate market may experience a very similar situation as the deadline for the $8,000 tax credit is November 30th of this year! In case you missed this incredible buyer incentive, first time purchasers (those buyers who have not owned a home in the past 3 years) will receive $8,000 (provided the sales price of the home they purchase is $80,000 or above. This is money they do not need to pay back!  If it is below $80,000 it is 10% of the sales price) when they purchase a home as a primary residence and close the transaction prior to November 30th, 2009. That means they have to have an accepted offer by no later than November 7th or so (unless they are paying cash), as the mortgage lenders need at least 3 weeks to process the loan in most cases.

What does this incentive mean to you as a seller of a residential property? It means opportunity! You know economics 101 teaches us the law of supply and demand. When demand goes up, the product, whatever it is, will sell at a better price in a shorter time period. Therefore, this tax incentive is creating a demand, although short term, for homes that fall into the price range for first time buyers. In most communities, a first time buyer spends up to $250,000 on average. Therefore, if you own a home that falls into this price point, this may be a great opportunity to sell your home at a decent price. We may see a rush of buyers as the deadline approaches, just like the huge volume of buyers that took advantage of the cash for clunkers incentive.

So, if you want to take advantage of this phenomenon, time is short. Call a real estate agent as soon as possible, so that you can get your home ready for sale and get on the market in time to cash in on this government program. Of course, you need a destination, as you don’t want to sell and move into a hotel! If you have had your eye on a senior apartment, condo, or community, call and see if there is a home ready for you. If you sell in September or October, try to have occupancy by December 1st. That should give you enough time to plan your move, and get your new home ready for your arrival. There are great incentives and a healthy inventory so you should have no trouble finding your new residence.

As I have sold several thousand homes, many of those of seniors, the statement I hear most often when I run into them after the sale, is, “why didn’t I do this sooner!”

We are all hearing many conflicting stories about the current real estate market. Depending on area, some homes are holding their value, while most are retreating somewhat from last year’s prices. There are fewer buyers in the market, while listing inventory has risen. The law of supply and demand states that when there is less demand and more inventory, prices will fall. So how do we take advantage of today’s market and achieve our goals if we choose to make our move now?It is important to be realistic. That means to do your research as to the value of your home. The best way to gain the knowledge you will need is to call two or three Realtors, preferably one who specializes in working with seniors. Older adults have special needs and tough choices to make when considering a move. A Realtor should be educated and sensitive to those challenges. My best advice is to listen, listen, listen.

It is important you don’t interject your opinion as to value before hearing what the Realtor has to say. They are human and subject to emotions just as anyone else. If they sense you want a certain price, they may alter their opinion which is a disservice to you. You need to know exactly where your home fits in today’s rapidly changing market.

Next, ask for advice as to preparing your home for the very particular buyers who will view your home. As I stated earlier, there are more choices than in past years for fewer buyers in the market place. This means if your home does not show well, it will sit on the market or you will have to reduce the price possibly several times. The first 2-3 weeks on the market are the most important because the listing is fresh, and new for buyers to see. If they like it, they will make an offer at a price point to make sure they are the lucky new owner. If your property sits on the market for an extended time, buyers will see your home as an opportunity for them to purchase at a lower price. There is no longer the sense of urgency since it has been on the market with no takers. The advice given by the Realtor may be hard to hear. But you must listen if you want to get the most from your home in the condition it is in. You can’t have it both ways. If it needs work (interior and exterior maintenance, etc) you will have to discount the price to attract buyers who are willing to do that work. If your price is too high, you will attract buyers who have high expectations and will simply walk out of your home, wasting your time, and adding to your frustration.

Properties are selling! Your home however must be priced properly for the location, condition and floor plan that you offer. Remember that those first 2-3 weeks are critical. Understand the value of your home and decide whether or not you want to invest money to prepare the home for market, or to sell as is with the home priced to reflect work needed. Since we are in a declining market, the sooner you sell the more money you will have for your future. Waiting for prices to return to past levels may cost you more than you are willing to surrender. Therefore, have an open mind and try to listen to the opinions of professionals who are available to help you if you are willing to listen!