I meet with several people each month to review our seller-friendly marketing programs and to discuss their real estate needs. In some cases, depending on the seller's motivation and what they need to net from the sale, I have to recommend the seller stay put and not sell in this market. The truth is that this is not the market to put an overpriced home up for sale.

But in cases where the seller is selling their home to buy a larger, more expensive home, I say Go for it! It's simple math that shows that this is generally a good decision and, if managed properly, such transactions could actual profit the sellers - even if they take less than originally desired for their home. Consider the following example:

Seller A owns a home on the south side of South Bend. Two years ago, this home may have sold for $135,000. But, they receive an offer today of only $120,000 - a whopping 12.5% less than the going price a couple of years ago. At first glance, selling for $15,000 less than desired is not very appealing.

But, the sellers have identified a larger home they would like to buy. Two years ago, this home may have sold for $249,000. But, since this is the same market, we assume the same 12.5% depreciation on this larger home and the going rate is only $217,875 - a savings of $31,125.

The seller gained $31,125 in savings on the new home and lost $15,000 to depreciation on the original sale. The seller's total gain is over $16,000 compared to sales two years ago. Although the seller may have gotten more on their sale in 2006, they would have more than likely paid more for the new home.

Of course this is a hypothetical example that does not apply across the board. Several factors go into determining the overall profitability of any real estate transactions. However, this is an illustration of a concept that is possible in this market and sellers should be aware of it.

So if you are considering upgrading your current home, get in touch with your realtor, (that should be ME), and have a good dialogue about your situation. Now may be the best time to make your move!

The South Bend Tribune recently published an article entitled, "Existing Home Sales Dive". The article suggests that some experts predict that this recent home slump will rival the sales slump of the early 1980's. After reading the article, we felt compelled to put this information in the right light for our sellers so you know where you stand.

It is undeniable that sales are slow compared to recent years. However, homes are still selling and they are selling everyday. We study the market daily looking for trends that indicate consistent success strategies for getting a home sold in this market. The real difference between this market and previous hot selling seasons is the motivation shift. In previous years, home prices were rising. Buyers were motivated to act quickly because today's price seemed like a bargain compared to where home prices were speculated to go. This year, buyers are motivated to hold until they find the bottom. They do not want to buy a house today that they speculate will be worth less next month. This shifts the motivation to the seller. The Bottom Line: Homes that are selling are priced at or slightly below market value for that month.

So, how is a seller successful in this market? Here are the steps we believe you should follow:

• v Determine overall motivation. Sellers should determine the driving factor behind this move and evaluate the consequences of NOT moving at this time. Some sellers have actually brought money to closing this year because the consequence of staying outweighs the dollar figure needed to move the house and move on with life. If you are selling purely as an option or to maximize profit, consider that waiting for market conditions to change may be a better option.
• v Price at or slightly below this month's market value. Sellers need to stay informed of how the market is performing around them. We will help you do that. The home needs to be priced competitively to sell. The discriminating buyer needs to perceive that the home they buy will not depreciate much further in the upcoming years. We suggest taking advantage of your commission discount to price better than those that have higher commission expenses when they sell.
• v Make price adjustments quickly. We agree with the article in the point that market conditions are changing as quickly as MONTHLY. The market value of a given home next month could be significantly less than the market value this month. Waiting 1 extra month to make a price adjustment could mean that you will have to adjust even lower to find market value or that your price change will be ineffective.
• v Negotiate GENTLY until the Buyer say "Final". We have noted a trend that many initial offers are "low ball" whether or not the buyer intends to pay a higher price or not. Buyers are reading the articles as well and they are testing the sellers' motivation to sell. Many deals we have closed this year were within 95% of the asking price even though the initial offer was a low ball. However, the MLS shows that many other deals, regardless of brokerage, closed significantly below the asking price. There is no way to tell by the initial offer. We have found that avoiding emotional responses on the seller's part and keeping negotiations friendly have helped us find what the buyer is really willing to pay.

Besides keeping you informed of market conditions, the second part of our job is to provide you with the information and education you need to make informed decisions. Some of our sellers have already received our complimentary DVD Pricing Your Home to Sell and pamphlet The Truth About Selling Your Home. For others, it is enclosed. These are independent takes on selling in a challenging market from real estate industry leaders and loaded with information to help you make wise decisions in the selling process. We invite you to review them and consider the advice.

I honestly believe Assist-2-Sell is a seller's best friend in this type of market and I encourage you to take full advantage of the benefits we offer.

• v Owner Involvement - Our office is managed by it owners. There is no doubt that we care about your sale and your satisfaction because our names are literally on the line. For the most part, we are available to you 24/7. If you have questions or suggestions, just call.
• v Market Information - A hallmark of our service is our commitment to keep you up to date with honest market information. As discussed above, this information is crucially important to success in this market.
• v Buyer Friendly Marketing - Our marketing targets the buyer. We do not over-rely on the MLS and outside agencies to sell our listings.
• v Results With Savings _© - Remember you will save thousands compared to paying higher percentage-based commissions. In many cases, this will give you the advantage you need to price more competitively compared to your competition.

In closing, I want to reassure you that you have brokers that are not afraid of this market. We will work as hard as we can to get your home sold for the most amount of money, in the least amount of time, and with the least amount of inconvenience. However, this is a team endeavor. Your commitment will also be necessary for a successful sale. As always, we will be here 24/7 to assist and advise. Please contact us if you need anything.