The current real estate atmosphere is not a surprise for seasoned observers. The one constant in real estate is that the market will and always does change - it’s just a matter of when and how much. The real estate market is not crashing. It’s following some predictable economic patterns of correction. This year’s market is getting better for buyers but sellers are still in the game. Get informed, get your home prepared and make the most of it.

The Local Scene

The more you understand the market, the more equity you’ll be able to retain when you sell your home. Even if you are working with a realtor, do your own research on the local real estate market. Talk to your neighbors, use online resources and keep an eye on the neighborhood by becoming a faithful reader of the newspaper real estate section. All of this information will help you make the right decisions.

In your research, consider all the factors that led to a closing sale price. Was it a foreclosure or family to family transaction? What where the terms? What incentives are sellers offering and what incentives do buyers expect? Use comparable properties to estimate your home’s value -apples to apples. If your neighbor's have a view, central air, alarm system and garage and your home has none of these amenities, it's not a good comparison even if both homes have two bedrooms and two baths.

Keep in mind that closing prices are facts, not asking prices. If you want a realistic idea of property values in your neighborhood and of your home’s value, use the most recent actual sale prices for comparisons. The weather between last March and March of 2007 may be similar but there is a difference in real estate property values.

Don’t Go it Alone

You can represent yourself or hire a realtor. Either way, get a professional home inspection before putting your house on the market. Home inspectors work on a fee-per-service basis and will give you an impartial analysis of what repairs are needed. This will help you get your home into a competitive market position.

Purchase contracts are usually contingent of the property passing inspection so identifying problems before buyers are involved will eliminate uncertainty. You will have the opportunity to remedy any problems ahead of time and present a flawless product. Even small repairs will give your home an edge and keep buyers from moving on to the next property.

The cost of a home inspection varies depending on the size of the home, the location and the services. You can get a basic inspection or opt for additional tests, like radon. On average, home inspectors charge about $100 per hour so the bigger the property the more it will cost. However, it is an investment that will save you time and money.

There are plenty of “for sale by owner” resources and if you are willing to do the research, marketing and negotiations you can sell your home without a real estate professional. However, in a soft market this is not always your best move.

If you do hire a realtor, hire a good one. Interview several potential listing agents and get a comparative market analysis and written marketing plan from each. Review the different strategies, ask questions and get answers. Choose the realtor that takes time to walk through your home with you, points out needed repairs and prices to sell.

Don’t Take the Market Personally

In your eyes, your home is beautiful. But that’s subjective and it’s the market that will dictate its current value. You need to put personal judgment aside and accept the market. The best way to sell your home and make money in a soft market is to do the best you can within its limits.

The real estate market is a dynamic system that is out of your control. You can’t expect financial results that the market doesn’t support, no matter your opinion or your needs. If you are selling in 2007, you can expect picky buyers. Have your home in its best condition but don’t take it personally if it takes a little more time to sell than you expected.

A soft market means it’s the seller’s turn to be flexible, especially with sale terms. Purchase price, closing dates, move-in dates, storage, appliances, window treatments, points and fees all need a little flexibility on your part. Don’t let personal feelings stand in the way of a good deal.

Appeal to Picky Buyers

In a soft market, curb appeal, cleanliness, good condition and updates are crucial. Any little flaw should be taken care of before the first buyer drives up. You may have tolerated the “quirks” of your home but this year’s buyers will not.

Spend a few weekends checking out the competition. Attend open houses in the neighborhood to see what “sell-ready” looks like. You can also ask your realtor to accompany you or take you through examples on appointment.

Start outside to strive for a good first impression. Fix the patches in the lawn, change the lights in the lamppost, reset that tricky walkway stone and get rid of detractions. Styles vary but neglect is a universal language.

Inside is the next step. Clean beyond your standards. Rent an industrial carpet cleaner or hire a professional service. Amp up the interior ambience with light fixture updates. New lighting is one of the most inexpensive and worthwhile improvements.

Fix leaky faucets, touch up wood floors, freshen the paint. Fix, replace, update, polish and clean. With a few weekends of diligent attention you will eliminate immediate buyer turn-offs. You and your agent should only have to explain how lovely your home is in advertisements. When buyers are at your door, the home should speak for itself.

All Offers Hold Potential

It may be months before you get an offer so take it seriously and don’t assume that buyers are lined up. It is a buyer’s market and there are plenty of other options. Consider every potential buyer and every offer. Take leads seriously and be sure your realtor has the same mindset.

Buyers are less patient, less anxious and have enough confidence to walk away. Review every offer and find ways to negotiate tactfully. Be proactive and create win-win situations.

Don’t balk at low offers. Instead, consider buyer incentives that help you meet your asking price. Offer to pay the buyer’s discount points, closing costs or loan origination fee. These can help the buyer with upfront costs or shave their mortgage interest rate.

Sweeten the deal with a home warranty that covers HVAC systems, plumbing and appliances for a limited time. Or offer to cover homeowner expenses for a limited time like condominium association fees or the lawn service.

Know your bargaining points and work with your realtor to find more creative solutions to make a deal come together. Purchase price is just part of the deal, the terms and incentives are also important. Anything that makes your property stand apart from the competition will give it an edge in a soft market.

Remember that these “extras” are a means to an end. Your goal is to get the most out of your home’s value in a soft market. A $400 home warranty gives buyers peace of mind and saves you from carrying two mortgages or watching your home sit in a stagnate market.

Just be sure you’re comfortable with the terms and don’t offer what you can’t supply as they will be part of the legal sale contract. Also, don’t hesitate to say no if that’s what your gut tells you to do. The goal is to work with the buyers you have and come out with a good deal.

One word of caution: be wary about purchase offers that are contingent on the buyer selling their home first. Their home is in the same soft market as yours and you could be in for a long wait. Be sure that the purchase agreement includes a contingency-release clause. This way you’ll be able to sell if another buyer comes along.

*Note: The information in this article is general advice and not meant as a substitute for personal guidance from a financial advisor, real estate professional, general contractor or legal counsel. Although the author is a licensed realtor, the advice given in this article does not constitute any client contract or agreement between the author and the user. The author is not responsible for any losses, damages or claims that may result from your decisions.