3 Tips to Help Ensure a Faster Sale in a Buyer’s Market
With almost a year’s worth of excess inventory already listed on the market, home sellers this year face some major challenges – especially as we head into the slowest real estate sales season of the year. But it is still possible to generate strong interest in a home and attract buyers for a timely sale, as long as the homeowner is realistic about pricing and takes a few steps to speed things along.
Here are a few expert tips from experienced real estate professionals for helping sell a home despite being in a confirmed buyer’s market:
Price it Right and Revisit the Price Periodically
To sell in this historic buyer’s market requires aggressive pricing, and that means that homeowners should avoid trying to “fish” for a higher price. The potential delays are too costly, especially heading into the slow season, so it is best to price based on what comparable homes are actually selling for and not how much money the individual homeowner hopes to get. The asking price should not be a “wishing price” in other words, but should accurately reflect current market conditions and sales activity.
When listing a home, Realtors often suggest starting at one price and then reevaluating the price periodically. Do it on a schedule by marking the dates on a calendar, rather than trying to base any price change decisions on emotions or day to day fluctuations in the number of showings. If listing the home at $200,000 on September 15th, for example, mark the calendar for a reevaluation of price on November 1st and again every two weeks until it sells.
To sell a house sooner, find out the low end of the price range for recently sold comparable homes. If sales have been between $250,000 and $280,000 for example, price yours closer to $250,000. By anticipating what buyers are willing to offer and setting the asking price 1-3 percent higher, buyers can be given a discount from the full price without eating into the seller’ projected margins. That makes buyers feel that they got a better deal, while giving the seller some negotiating room.
Dress it to the Nines
The better a home’s curb appeal, the greater the chances that buyers will notice it. And when a house looks great on the inside, agents are more inclined to show it to clients. The work that goes into showcasing a home is a good investment, especially when the selling arena is competitive. Today’s homeowners are not just competing with neighboring houses but also with brand new construction. Builders hire professionals to decorate their listings, and they are able to throw in lots of upgrades and perks. To sell a house against that kind of competitor, don’t spend lots of money dressing it up but do spend the time and effort to make it looks it best.
To accomplish that, start with the outside and make the landscape more inviting by doing inexpensive touches like mulching flowerbeds, adding entryway lighting, or painting and adding new hardware to the front door. Paint any interior rooms that need freshening-up and remove as much clutter – including furniture – as possible. Clearing out rooms and closets gives the appearance of more space, and that can be a huge selling feature. Make sure that the house is neat as a pin before each showing, because homeowners sometimes only get one chance to impress a buyer. But remember that just one good showing is all it takes to get a written purchase offer.
Make it Easier to Finance, Buy, and Maintain the Home
Owner financing during the current credit crisis is a huge plus, because many buyers are struggling to meet the stricter new standards for loan applications. If you can offer financing yourself – by having a qualified attorney draw up the paperwork – it is possible to sell for a higher price, because buyers are usually more than happy to pay a premium when homeowners are willing to provide reasonable financing. But even without securing a higher transaction price, homeowners who do owner financing earn mortgage interest over time – and that can add thousands of dollars of extra income above and beyond the sales price.
To reassure buyers – especially first time buyers – offer a home warranty. These special insurance policies cost about $300 but provide coverage for a wide range of repairs to everything from appliances and wiring systems to plumbing and HVAC units. Motivated sellers can also offer a repair allowance to the buyer to cover any miscellaneous repairs required upon move-in, or they may consider paying some of the buyer’s closing costs. During this kind of real estate market money is usually the biggest issue, and any out of pocket expenses that a buyer is able to save can be applied to the down payment to help secure a mortgage.
To market and sell a house, condo, or other property with greater success, visit www.GayRealEstate.com – or calltoll free, 1-888-420-MOVE (6683). The brokers in this online network are seasoned experts and are 100 percent supportive of the GLBT community.
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Jeffery Hammerberg is Founder and President of Gay Real Estate, Inc. – the nation’s largest group of companies connecting gay & lesbian home buyers and sellers to gay, lesbian and gay friendly real estate agents. Since 1997, Hammerberg has created a virtual real estate marketplace for the LGBT community.
Photo credit: www.GayRealEstate.com.
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