Buyer's Market: Tips for Sellers

Home prices have gone up, mortgage rates have risen, and the rate of home appreciation has slowed. Houses are sitting on the market longer and investors are shying away because it's harder for them to sell their properties, let alone make a profit these days.

Even home builders are becoming more competitive to get homes sold. According to the National Association of Home Builders, 40 percent of builders were offering non-price incentives in December--anything from free home upgrades to free landscaping to free flat-screen TVs.
It has become a buyer's market. So what's a seller to do?
Change Your ExpectationsThe bubble hasn't burst, but the market has certainly slowed. Expect that you won't be able to sell your home right away. You also might not be able to make as much of a profit off the sale as you would have six months ago. So be prepared to drop your asking price more than you expected or price your home slightly below what comparable homes in your area have sold for recently.
Consider Paying the Buyer's Discount PointsInstead of lowering your asking price, you might also think about paying the buyer's discount points. If you're flexible enough to help the buyer with his interest rate and tax bill, that could go a long way to getting your home sold faster.
One discount point will lower the buyer's mortgage rate one-quarter percent. The buyer gets a lower monthly payment while being able to deduct the discount points from their income taxes; the selling agent and the buying agent get bigger commissions; you get your asking price and everybody wins.
Dis-ARM YourselfIf, after much consideration, you decide not to sell your home, consider refinancing. If you have an adjustable rate mortgage that's going to adjust soon, it will probably adjust to a rate that's higher than you could get on a fixed-rate mortgage. So why not "dis-ARM" yourself and refinance to a fixed rate? You'll be saving yourself from the headache of higher monthly mortgage payments.
As a seller, it's possible you may not make as large a profit off the sale of your home as you would have a year ago. And your home might not sell as fast as you'd like. But you can get around dropping your asking price in favor of paying the buyer's discount points, a tactic that should make all parties happy.