Home prices in California have taken a beating over the last year. While median prices stayed fairly stable for a while, the sales volume was weakening every month and inevitably, as sales weaken, inventory begins to soar and prices begin to slip. Vacation home areas have been hit the hardest where sales volume and prices are significantly off.

Homeowners, investors and real estate agents need a strategy to achieve The Goal of selling their home, investment or listing. The number one key in a market like we are facing is dealing with reality. We are no longer in a market where the seller can name his or her price. In fact, sellers have to be more in-tune with the market than anytime I can remember, ever. Price is critical to be sure, and also you must know the current market conditions in the area, such as REO and foreclosure activity which can drag down price and prolong the sales process. This will help you react to changing conditions.

Lenders swore they wouldn’t dump properties on the market but they are doing it. Their stockholders won’t stand for non-performing assets (mortgages that are delinquent) and this has accelerated a downward trend in pricing. There’s just more competition out there than there was previously with some areas having 12 or more months of available inventory based on current absorption rates by buyers.

That said, here are some more aggressive tips for selling a property faster:

• Analyze all aspects of the market; price, foreclosure activity, trends, risk factors
• Consider pricing your property slightly below the market norm, perhaps 3-5%
• Consider paying a bonus commission over and above the normal rate to the selling agent to attract maximum exposure for the real estate agent community
• Don’t let your home sit on the market too long without a price reduction – 45 days is probably as long as you’d want to wait.
• Keep your home in top “showing shape”. You have to make a great impression now or you’ll miss the chance to differentiate yourself.
• Be flexible when you get an offer. It’s always a negotiation.
• Before you say no to an offer, ask yourself, “Can I afford to lose this buyer given my circumstances?”, which could entail a job change, the risk of foreclosure, the purchase of another home and possibly double payments in the near future.

These are harder than normal times and you need a plan that is going to give you the best opportunity to sell your home. Keep an open mind and be aggressive as a seller, agent or investor. To do less will be to short-change yourself.