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1st quarter 2009 area sales compared to previous years

1st quarter 2009 area sales compared to previous years

This news is pretty ugly for the Knoxville area real estate market. This graph, comparing 1st quarter sales from 2002 until present looks like a skyrocket that reached it’s highest point in 2006 and is now plummeting back to earth.

From 2,739 in 2008 to 1,890 in 2009 is a 31% drop in sales volume in just one year and a 50.16% drop from the peak in 2006 !


For Knoxville area home sellers this is not good news; low volume indicates a lack of buyers and falling prices.

The chart below shows the average and median sale prices for a 3 bedroom home in the Knoxville area for the same time periods

This is the average (in red) and median (green) sales prices for 3 bedrooms homes in the greater Knoxville area.

This is the average (in red) and median (green) sales prices for 3 bedrooms homes in the greater Knoxville area.

So what’s the secret or what does it take to sell a house in a market like this?

I believe there are several things it takes.

  1. Number one on my list would be a very aggressive list price. I’m seeing homes on the market now that are not selling for what the owners paid for them as long as 3 years ago. If you’re a seller you’re competing with both a lot of other houses and the continuing stream of bad economic news that your potential buyers are bombarded with day after day. “Layoffs, hundreds lost jobs, downturn, worst economy in (take you choice of numbers), recession, etc.” It’s no wonder buyers are scared to buy if they can’t have confidence they’re have a job next week or next month.
  2. I also believe it’s equally important that you do whatever it takes to put your house in showroom condition. You have probably seen what auto dealers do with late model trade in cars. If you haven’t, they shampoo or replace the carpets in the car including the trunk, wax and buff the exterior until it shines, steam clean the engine, shine up the tires, and generally make it as appealing as possible and as close to new looking as they can get it. You have to do the same with your house. Stop thinking about it as the place you’ve had Christmas with your family, watched your kids take their first steps, and other emotional ties and start thinking of it as a piece of merchandise you’re trying to sell.
  3. Offer some buyer incentives, especially important in the lower price ranges. With all the news about the mortgage market lenders are more strict than ever about buyer requirements. Whereas in the past they used to use a magnifying glass on buyers they’re now using microscopes and requiring more documentation. I recall a transaction I had that closed last week and I had to prove I was not the Jim Lee on the FHA mortgage fraud watch list and submit an affidavit that I had never lived in a certain city in Illinois. And I was not even a buyer or seller in this transaction; just the buyer’s agent.
  4. Be prepared to accept an offer from a qualified buyer that may be below your list price by a large discount if you want to sell. Buyers read the news too and realize they are in the driver’s seat. Having your house in showroom condition, aggressively priced, and perhaps offering to throw in 3-4% of the sales price to help a buyer get in very often makes the difference between a buyer and a ‘just looking’ prospect.
  5. Exposure to as many potential buyers as possible. Common sense says that the more people that are aware something is for sale and want that thing, the more it becomes worth to them. Right now over 80% of all buyers are looking on the Internet for houses for sale. If you’re house doesn’t have a good presence with lots of photos AND MOST IMPORTANT, isn’t easily findable by potential buyers, you’re not going to be able to create that demand that brings the best possible price no matter what the economic conditions and how much competition you may have.

Visit www.KnoxvilleHomeCenter to see what a great internet presence looks like in the “Featured Homes” section and read the seller tips section under “Selling” to see how to make your house stand out from the rest.

I’m almost always available to a complimentary consultation to show you how to get your house sold quickly for the best price.

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