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SELLING A HOME IN A
BUYER’S MARKET
In a buyer’s real estate market, buyers are choosier, homes are
staying on the market longer, and prices aren't rising as quickly as
they once did. In many real estate markets in the past, sellers have
wielded more power than buyers. Sellers should not be reluctant to
drop their asking prices. With stricter lending laws, a rise in home
foreclosures, and builders offering incentives to buy new
construction homes, the existing home market has become more
difficult to move. With a limited number of buyers who can qualify
for a mortgage, buyers can make favorable demands to get the best
deal on their behalf.
Get ready for picky buyers
Most of us live with flaws in our homes that we intend to fix
eventually, but if you're house is on the market, it's in your best
interest to update your house as much as possible. You really need
to look at making repairs that are profitable in terms of selling
the house. In a transition from a sellers to a buyers market, buyers
become much more sensitive to things like dated light fixtures and
other things that you might over look. Aside from location and
school districts, kitchens and bathrooms are what sell a home. If
the choice is between replacing the refrigerator and refacing ugly
kitchen cabinets, spruce up the cabinets. If your hot tub isn't
quite functioning properly and the bathroom has old, stained
cabinets with ornate pulls on the doors, fix up the bathroom first.
Prepare yourself mentally
You're going to want to prepare to be flexible. Accept that the
market will set the sale terms. Don't take it personally if you
don't get the price you expected. Be realistic and do not expect an
extension of the supersonic price appreciation that some markets saw
in the last couple of years. It doesn't have anything to do with you
personally; it has to do with the market. Be flexible when you can,
you never know what people might want to do to make the sale
convenient for them. If you have flexibility, you have an edge.
Having an edge over other home sellers is what will help move your
house in a slow market.
I will Educate your about your neighborhood. Some areas are seeing
multiple offers the first day and others are stagnant.
Realistically determining the value of your home is very important.
One way to do that is to call us and we will tell you all about your
neighborhoods real estate market. I will look at comparable homes
that have been sold recently and at homes that are for sale now, and
recommend a listing price and a marketing plan. Do homes tend to
sell for 2 percent over the listing price, or 5 percent under, or
what? Was a house recently sold for a surprisingly low price? Maybe
the owners sold it to their own kids, a young family without much
money. Or maybe it was a "short sale" to avoid foreclosure. That's a
good piece of knowledge to have when a buyer tries to use that low
sale price against you in negotiations.
Hire an inspector
Buyers often make the purchase offer contingent on the home passing
an inspection to their satisfaction. Increasing numbers of sellers
are hiring inspectors before they put their houses on the market. An
inspector is impartial, they will be able to tell you if the roof
needs work, or small electrical things that need to be done, or
plumbing things. Once you have identified and fixed the problems, it
makes the house that much more attractive to a would-be buyer. An
inspector might spot flaws that would be obvious to a buyer, but
that you no longer notice. A good real estate agent does the same,
but an inspector will look deeper.
Sell on terms
Selling on terms is a great way to get market value on your house
without having to haggle and negotiate on the price. Buyers who
purchase a home on terms know they can't be as picky as a cash buyer
and are more likely to accept the sellers terms. When you offer
seller financing, you open yourself to a much larger pool of home
buyers. In a seller-financed real estate transaction-also frequently
referred to as owner financing and seller carry back financing-a
property seller agrees to lend money to the buyer to purchase and
close on the property. The growing trend of seller financing keeps
the dream of home ownership alive for millions of families across
the country. Many real estate investors are seller-financing fans as
well. Selling on a lease option is a great way to get full market
value for your house while having your mortgage payment made for you
by the tenant buyer, giving you equity build-up which will get you
more money at the time of the actual purchase. If your mortgage
payment is less than the current market rent, you can even make some
positive cash flow in the process. Another way to sell on terms is
when you as the seller carry back the financing and create a real
estate note which you can then sell for all cash or hold it and
collect monthly payments with interest just as banks do with a
mortgage or deed of trust depending on what state you live in.
These simple tips can make a huge difference in how long your house
will set on the market. Put yourself in the right frame of mind by
merely considering these options. It makes you think like a buyer --
and that gives you a competitive edge. Remember that you are
competing against other homes for sale in your area and having the
edge over the others is what gives you the selling advantage. Give
me a call when you are ready to see a sold sign in your front yard!
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Austin
2010
