House prices are falling in much of the country, and more than 4 million dwellings are on the market. That's bad news for sellers, because buyers feel free to make offers and then just wait.It's a buyer's market, but don't despair.
You can increase your chances of selling your house in a resonable time following a few good guidelines.
First play the cards you're dealt. A successful home sale begins before the house is listed, when you decide not to expect to make a killing.
All you can do in a falling market, if you have to sell, is have the bet possible product out there at the best price it should be. Not what you wish you could get, not what the neighbor got two years ago, but at the price you should get now. That's reality.
It takes discipline to face that reality. Humility, too. For many sellers, the only disappointment is that their friend, six months or a year ago, got more than they're getting. Ego gets in the way when they're trying to sell. Or a little inflexability should we say.
Second, break though your ego and inflexability by looking at the good deals that your neighbors are offering. The most important thing is to really shop the competition on the market right now. Get out in the car and spend a weekend looking at everything you can. Visit some weekend open houses. Just get a feel for what your buyers are looking at.
Third, make it a turnkey, not a turkey. The word turnkey is used in commercial real estate. It means a property is ready for immediate use. Your house has to be that way when buyers have a cornucopia of houses to choose from. You have to make it 100 percent turnkey situation. Everything has to be ready to roll, because buyers never want to buy a house that needs a lot of work unless it's an absolute bargain. You have to take away all their opportunities to say no.
Fourth, offer incentives. Besides a low price, incentives for buyers include paying discount points to lower the mortgage rate, paying closing costs or providing flexibility about the move-in date.
Consider offerring a premium to the buyer's agent. Add a half-point or a point to the commission, or give the agent a cruise or a big -screen TV. It may not cause the deal to happen, but it can just attract a little more action and make your deal stand out.
Fifth, and most important, price realistically. Don't get greedy, just because it went up to some astronomical value and it went down from there, you have to be realistic that there has been moderation in the market. It takes research, often conducted by a real estate agent, to come up with a realistic price, and discipline to abide by it. It's not enough just to throw out a figure. Using tools on sites such as Zillow, buyers can get an idea of your house market value. You and your agent can't bamboozle buyers because they have so much information about comparable house values.
In a seller's market, sellers typically ask for a 10 percent to 20 percent more than they expect to get. You don't have that luxury in a buyer's market. Normally one would suggest asking for just 3 percent to 5 percent more than you realistically expect to get. Setting an aggressive asking price attracts more prospective buyers to your door, discourages lowball offers and saves negotiating time. You'll know fairly quickly whether they're willing to meet you or not.
In a market where prices are falling, asking prices must fall, too, which is a whole new concept for sellersright now. For example, if the Smiths sold their house early this year for $700,000, you might have to ask just $695,000.
An agent has to have tact to break the news. When we tell our clients this, they think we are the mean guys.
For more information, please call:
Louis Wery, Broker Associate, CIPS, CRS, ABR, LHMS
Coldwell Banker Residential Real Estate, Inc.
201 Gulf of Mexico Drive, Suite One
Longboat Key, Florida 34228 USA
1-941-232-3001
No comments:
Post a Comment