Home sellers please take note: Buyers have gained the leverage in the local market. In many real estate markets during the last three years, sellers have wielded more power than buyers. This is no longer the case. Buyers are choosier, homes are staying on the market much longer, and prices are starting to fall area wide due to high supply and low demand.
TIP # 1: Price your home competitively to represent a great value
The first thing to do if you're selling in a buyer’s market is to price your house accordingly. Today there are many more homes on the market, and if the homes are not priced at market, they will not sell. Buyers are learning to be more cautious when it comes to investing their money in a new home What’s relevant is today’s market information, not a previous value nor a future value. We need to sell today, not in the past, nor in the future. Relevant recent comparable sales, will help you decide a competitive market price to represent a great value in the eyes of a buyer. Don’t be afraid to be proactive with a price reduction, as your home will be seen by more buyers as the home is priced more competitively.
It is recommended that you list your price at or below the competitive market price. (e.g. If your neighbors are asking 300,000, list your home at 280,000 to generate interest, 4-6% below the competing homes.)
TIP #2 Prepare Your Home to be Shown
Create good curb appeal. A home shopper's first impression is everything. The moment they pull up to the curb, they'll make an instant judgment. You'll want to be sure it's positive. You can begin by making sure leaves are raked up, and your shrubs and bushes are pruned. Make sure bikes and toys are out of sight.
Focus on your walls. If your walls are dirty, it will be an automatic turnoff to potential buyers. Think about touching up the paint on your walls before you put your home on the market, keeping the colors neutral and light. Save your favorite reds and greens for your next place, where you'll be staying put for awhile. Let the light in. Open blinds and curtains so plenty of light illuminates the home's interior.
Make sure your home shows well. Get rid of all the clutter. Keep the house clean and simple. If you have a lot of knickknacks, keep them out of sight. Make sure there are no lingering pet or smoke odors. Set out some fresh flowers. Turn on some light music.
TIP # 3: Prepare yourself mentally
Accept that the market will set the sale terms. Don't take it personally if you don't get the price you expected. Seller’s must accept what the market is, and make the most of it. It doesn't have anything to do with you personally; it has to do with the market.
You're going to want to prepare to be flexible. Be flexible on things in addition to price. The move-in date, for example. If it helps you sell more quickly by moving out earlier than you want, consider it seriously. You never know what people might want to do to make it convenient for them. If the buyer wants something that isn't hard for you to give, that's something in your favor.
Maybe the buyer wants to store furniture in your garage before moving in or wants to make the purchase contingent on selling his or her own house. If you have flexibility, you have an edge. A month or two of inconvenience will surely be worth it down the road. Think like a buyer.
TIP #4: Get ready for picky buyers
Every real estate agent will tell you to improve the home's curb appeal. It's even more important when buyers feel that they can afford to be picky.
In this market, buyers become much more sensitive to things like dated light fixtures, When you walk in and the house has that 1970s amber light fixture, they'll say, 'This house looks old,' and walk out. It's easy and inexpensive to replace that light over the dining room table.
This doesn’t pertain only to light fixtures. Stained carpets, scuffed hardwood floors, dripping sinks, torn window screens -- most of us live with flaws in our homes that we intend to fix eventually. When you put your home on the market, that day has arrived.
We recommend making repairs that are profitable in terms of selling the house. Use this example of choosing your priorities: 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. They want to see that pedestal sink, If the choice is between replacing the refrigerator and re-facing ugly kitchen cabinets, spruce up the cabinets.
TIP #5: Educate yourself about your neighborhood's real estate market
Understand the market by learning about recent sales in your neighborhood & be prepared to negotiate to sell. Do homes tend to sell for 6 percent below the listing price, or 12 percent below, 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. That's a good piece of knowledge to have when a buyer tries to use that low sale price against you in negotiations.
TIP #6: 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. He'll be able to tell you if the roof needs work, or small electrical & plumbing things that need to be done. Once you have identified and fixed the problems, your home becomes much more attractive to a would-be buyer. An inspector may also spot flaws that would be obvious to a buyer, but that you no longer notice.
TIP #7: Consider paying the buyer's closing costs
Paying closing costs is an incentive you can offer to a buyer, especially when a buyer is making a low down payment purchase. Be prepared to consider this option up front. Closing costs include appraisal, loan points, credit report, title insurance, homeowners and flood insurance and closing fees. Paying these costs is a major motivation to cash-strapped buyers; these costs usually run about 3 to 6 percent of the cost of the house. You may consider paying all or part of the costs. Put yourself in the right frame of mind by merely considering this option upfront. It makes you think like a buyer -- and that gives you a competitive edge.
TIP #8: Be Patient and Supportive
Home inventory locally has grown to levels that have not been seen historically in this market. Home owners insurance is quite difficult and expensive to obtain. Recovery monies have not flowed into our area as promised. Political corruption has tarnished our image nationally. There are low buyer counts in all market segments.
We are faced with a Very Challenging Real Estate Market!!
These are not foolproof methods for a quick sale, but these can help give you a leg up on the competition. It's important to show that you are keeping the buyer in mind and that you want to provide a fair sale. That can go far in today's real estate market.
Please be patient and supportive of our efforts. Together we will work toward a successful closing.
