| 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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SELLING A HOME IN A BUYER'S MARKET
Austin 2010
