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How to price against REOs and Short Sales

How to price against REOs and Short Sales

How to step it up and compete against short sale and foreclosure properties

If you are selling a house in a market saturated by REO (bank owned) and short sales, it’s time

The choice you are making is how serious you are about selling your house. Do you need to sell your house today or are you listing it ”just to see what you can get?” If it’s the latter, you might want to reconsider your choice to list your house.

If it’s the former, roll up your sleeves–I have some action items for you.

Selling a house isn’t easy, but it can be easier depending on your level of commitment and cooperation. In a market where your main competition is REO and short sale properties, you need to:

 Price your house to sell. Make sure it’s competitive against the foreclosures and short sales. Like it or not, this is the reality of your situation today. If you don’t like the reality, it may be time to reassess your goals and motives.

 Entertain lowball offers. Have you ever heard the saying that your first offer is usually your best offer? At least 8 out of 10 real estate agents have confirmed this for me, making it more fact than opinion in my mind. Unless the buyer is really off his rocker, counter back–it can’t hurt anything and an offer means you’ve got a live prospect on the other end of that document who has shown interest in your house. Go on and counter.

 De-clutter and clean your house. Get it in showroom-ready condition. A visually pleasing presentation–i.e., your house flexing itself in all its bodybuilder-stunning glory–will make better eye candy than a run-down, lonely, unkempt-looking stray. This action item is actually one advantage you have over the REO properties in your area. You have complete control over how your house looks when potential buyers come and see it.

Now it’s time for a self-evaluation check. Do you still want to sell your house? Do the above action items seem reasonable to you? If you’ve answered yes, then one last question: Are you expecting top dollar? If you answered no, go ahead and move on to the next section of this post. If you answered yes, it may be time for some more self-evaluation before moving ahead.

Denial is a hard habit to break.

If you’re still here, that’s great. You have taken a big step and made a decision to be a realistic real estate seller. Having sold a house before, I know it’s not always an easy move to make. Now that we have that difficult part out of the way, let’s move on.

Not all real estate sellers are on an equal playing field. Some who are transferring jobs or who are near foreclosure don’t have the luxury of time. In addition to following the above tips, make sure you choose a real estate agent who has sold properties like yours and who communicates frequently and effectively. Email, phone and text messaging should all be skills your agent possesses.

Don’t base your real estate agent selection solely on price. Real estate agents who buckle on their price opinion and agree to list at the price you want, simply to “get the listing,” might be doing you a disservice in the long run.

The longer your house sits on the real estate market at an inflated price, the harder it will be to get it sold.

All of these action items are critical to getting your house sold. Ask yourself this question: Is my house listed right now with a dead-set intention to sell it? If your answer is yes, then make a firm commitment to step it up. You’ll need to if your real estate market is saturated with REO and short sale properties.

Posted Friday Jan 02