Last week we saw that the home buying market has changed, both in Atlanta and across the nation. Optimists are calling it a slowdown, while the financial media is describing it as a market crash. Whatever it is, it has shifted the advantage in the real estate sales game to the buyer side of the equation, and that means problems if you are a seller.

Some might describe unknowing sellers as needing to join "Real Estate Owners Anonymous," perhaps in need of a multi-step program leading toward recovery. Well, if you are trying to sell in this buyer's market, I have some steps you might employ:

1. Admit to yourself that you have a problem. Many sellers are still trying to convince their real estate agents that comparable sales data from the past couple of years are still valid, when in fact, the market has changed.

The first step on your road to recovery is to acknowledge that we are operating in a different market than the one which existed a year or two ago. To prove it to yourself, ask your agent to show you half a dozen homes for sale that are similar to yours in features and location, then decide for yourself what a proper asking price should be.

2. Know that some sellers may be more highly motivated than you are, and that they may be able to afford to sell for less than you can. For example, if your neighbor bought their house thirty years ago and now owns the property free and clear of any mortgage, they may be in a better position to bargain for a sale than you. That is doubly so if you bought last year with a 100% no down payment loan.

If you have that kind of competition, you are in a no-win situation until the competition finally sells. You may be better off finding a way to postpone your selling effort.

3. If you absolutely must sell during this winter market, be prepared to take your medicine. Buyers are asking for (and getting) seller concessions on closing costs, purchase price, repairs, allowances, and anything else they can think of. Decide in advance the least amount you are willing to accept in order to move on with your life, and hope to get it.

4. It's probably worth investing $300 in a formal appraisal, even though you may not get an offer for that amount. Last year's sales don't prove anything in a declining market. But it still could be a powerful marketing tool, and it will make the buyer think he is getting a wonderful deal when you accept less than appraised value. Also, he can then brag to his friends what a smart negotiator he is.

5. Try to find a way to postpone your sales effort. Winter has traditionally been not only a slow selling season, but Atlanta is usually cold and wet until spring arrives. I think there is a reasonable chance that the balance between sellers and buyers may be more in equilibrium next year, and we may begin to see the market firm at that time. Waiting for a better market may earn you thousands of dollars.

6. One very realistic alternative to selling is to rent until the market improves. I know you have heard horror stories of how bad rentals can be, but using a professional management firm can minimize those problems. And even though you may lose a small amount of money on a monthly basis, you may end up selling the house to the renter.

One powerful strategy is to advertise your home as a "rent-to-own" deal with a certain percentage of the rent applying toward a purchase price you can live with. Each month that goes by under such an arrangement helps the renter-buyer build emotional and financial "equity" in your house. Eventually, the renter may feel he must buy in order to protect the amount of money he gets at the purchase table.

I recommend a real estate attorney to help you draft such an agreement. If you explore this selling method, be sure to clarify any commission obligations before you accept a proposed tenant. Otherwise, you may be liable for a full real estate commission you didn't expect.

7. Another great way to get your house sold is to offer it for sale with owner financing. If it is structured properly, the owner financing route can be a win-win opportunity for all parties. You can limit the term of such financing to fit your needs, perhaps three to five years.

There are many individuals who want to buy, but are currently unable to find reasonable financing through conventional sources. And as a seller, you can receive an excellent rate of return on your equity while the buyer moves into and begins making payments on your former house.

Again, the use of a knowledgeable real estate attorney is critical in this course of action. And there may be roadblocks to implementing this strategy.

For example, if you now have a conventional first mortgage on your house,
your current lender likely will require that you pay off your existing loan when you sell. Unless you either own free and clear of any loan or carry a very small balance, this policy may prevent you from selling under owner financing.

But if that is the case, you can revert to the "rent-to-own" strategy above.

The good news is this: most renters, given sufficient motivation, can clean up their credit enough to buy your house with a new loan during a 3 year rental period, then purchase with a conventional lender. I know it's not the quick sale you wanted, but at least it's a sale.