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When the Market Slows Down Things have slowed down a bit across the country. No, the market isn’t bad, it’s just that homes are now taking longer to sell and values are not skyrocketing like before. People still need places to live and homes still get sold and purchased. Only now, in order to avoid being that seller whose house took forever to sell, one must be careful to take just the right steps before and during the sale. And what are those steps? Here are the most essential ones:
Price properly. People purchase properly priced properties pronto. And overpriced homes can languish on the market for months. Now, there are two ways to come up with the sales price. One is to use a gut feeling and the other is to use available market data. The gut feeling method consists of finding out what the neighbor’s home sold for last year, deciding that yours is much better, and then choosing the price that sounds good. This approach is quick, but buyers have a bad habit of not trusting the seller’s gut feeling. The market data approach (in real estate terms, called Comparative Market Analysis, or CMA) is a little more involved. It consists of comparing your home to similar properties that sold recently, properties that are currently for sale, and also takes into consideration the current market trends. This approach tends to produce a more accurate estimate of the home’s value, and, as already mentioned, accurately priced homes just sell faster. By the way, real estate agents usually offer this analysis for free to their clients (as I do), so no, you won’t have to do all the work yourself. Carefully prepare your home for sale.
We all live in homes that have some imperfections, and over time we become so used to those imperfections that we don’t even notice them any more. But buyers look at homes with a critical eye and often concentrate on what’s wrong with each home rather than what’s right with it. Before placing your property on the market, get a second opinion about what improvements and repairs should be made. A Realtor® is a good source to ask. Some sellers even hire a property inspector to check the home’s vital systems. It’s not a bad idea – the inspector is impartial and the buyer will want an inspection anyway. You might as well fix what needs to be fixed before the buyer makes it an issue and tries to use it to lower the price.
Use a Realtor® with a thorough marketing program. Your home must be exposed to as many buyers as possible. Before you sign a listing agreement with any Realtor®, it is important to know exactly how your home will be marketed. Print and Internet advertising are important. Some companies do not have company-paid advertising programs. Many Realtors® do not consistently pay for their own advertising. Select a Realtor® who has a proven marketing plan to sell your home.Use a Realtor® who is familiar with your neighborhood. Your Realtor® must have a thorough knowledge of your market and your neighborhood. If you select a Realtor® based on your personal friendship or a relative and that person is not familiar with your neighborhood your home may not be priced right. If you select a Realtor® who is from outside your area, your home may not receive the marketing and the attention it deserves. Keep an open mind. In order to have a fast sale, it’s sometimes necessary to sweeten the deal for the buyer. This does not have to mean significantly lowering your price; for most buyers the down payment is a much bigger concern. It makes sense – the down payment has to be paid in cash upfront, whereas increasing or decreasing the price by a few thousand dollars means just a few dollars difference in the monthly payment. So, rather than lowering your price, consider offering a “seller contribution.” In other words, rather than coming down, say $10,000, offer $5,000 towards the buyer’s closing costs. This obviously saves you some cash, and it benefits the buyer more than a price decrease. There are also non-monetary concessions that you can offer to the buyer. For example, being flexible about the possession date or agreeing to make the sale contingent upon the buyers selling their home first. This could be a big deal for them, and no big deal for you. Doing the buyer a favor means a happier buyer, which could mean a faster sale for you and more money in your pocket. There is, naturally, more that you can do to ensure a successful transaction in today’s market – a short article just can’t cover it all. I am always happy talk to you, hear your questions and concerns, and offer professional advice. Free of charge and without any obligation, of course.
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