Real Estate values have been falling in much of the US. The pace of new homes is down, as well, with many on the market for months.
There are strategies that can help you sell your home - For a fair price - even in this market.
First of all, you might have to be very aggressive, especially if your local market has tons of homes for sale.
** DON'T START WITH A HIGH PRICE - Asking price is the single most important reason that a house does not sell. In this buyer's market, it is a mistake to set a high price and assume that you can lower it later or lower it in negotiations. Local Real Estate Agents pay the most attention to homes when they are new on the market. These days, agents may not even show your home if it is overpriced.
If you start too high, then lower your price, agents will have newer listings to show. The buyers who do see your home will view your price cut as a sign of desperation and bid low.
WHAT is the CORRECT PRICE? The correct price in this market is toward the low end of the range of prices being asked on comparable homes currently for sale in your neighborhood.
Pricing your home as a bit of a bargain ensures that as many potential buyers as possible will view your home. This is vitally important when the number of sellers outnumber buyers.
KEEP an EYE ON COMPARABLE LISTINGS every two to four weeks if your home has not sold. If local prices are falling, you may have to lower your price to remain competitive. When you do a price drop, make it large enough that the new price is VERY competitive with comparable home or even "The Best Deal."
IMPORTANT- The sale price of neighbors homes for a year or two ago should not even enter your thinking when you set your asking price. It was a very different market then and those prices are not even relevant today.
NOTE - If your home is not attracting many showings, the price is probably the problem. If it is attracting showings but not offers, the home itself is most likely to blame.
Fix it up first - "Fixer Uppers" tend to be ignored in a slow market because buyers can find good deals without doing any work. If your home needs repairs, get the work done before putting it on the market.
Pay attention to Curb Appeal - Buyers have a lot of choices and if your home doesn't look attractive from the street, they will drive past without even stopping. Replace damaged screens, tidy up the lawn and landscaping, pressure wash the sidewalk and mulch around trees and flower beds. If necessary, touch up paint, particularly the front door and trim. Upgrade outdoor lighting fixtures, doorknobs and your doorbell switch or knocker. These small details can evoke an emotional reaction in a home shopper that can lead to a sale.
Freshen up Inside - a fresh coat of paint can go a long way. It also pays to have a professional cleaner to remove years of grime from your kitchen and bathrooms. Your home should sparkle. Smell Matters!! It is extremely difficult to sell a home that reeks of cigarette smoke or pet and cooking odors. Perfuming the home doesn't fool anyone.
Advertise special features of the home. French doors, original woodwork, etc. And be descriptive, rather than writing "inground pool," write "inground pool with stone deck and waterfall."
Help with closing costs - buyers who are short on cash may have trouble paying upfront mortgage expenses. Offer to pay a portion of these costs, and buyers have a reason to choose your home.
Pay for buy downs. Many lenders will lower interest rates by 1/8 to 1/4 percentage point in exchange for an up-front payment. The payment is usually 1% or 2% of the loan amount.
Include details of your incentives in your MLS listing, newspaper ad, flyer's and on your website.
You can also offer real estate agents a bonus, which could be an extra 1% of the purchase price, on top of their usual commission, at closing if they find you a buyer. Mention this only in the MLS listing.
Lastly - Don't Overnegotiate- If a potential buyer's first offer is reasonable, consider accepting it, rather than making a higher counter offer. Buyers have so many homes to choose from today that they sometimes move on to other homes, rather than make a second offer when sellers don't accept their initial bids. If you do not need to sell quickly or your home is having lots of showings, counter, but if you need to sell fast and the initial offer is reasonable, do not risk losing the sale over a small amount of money.
