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The Home Seller's Market: Let's Break it Down . . .
It's Tough.
There, I've said it - short and simply. Selling in today's market is going to be tough. If you have to sell a home now, might as well wrap your mind around that statement. If any other realtor tells you differently, RUN away from them.
I'm sure you have heard it in the news and have probably read some of my other articles calling out for investors to purchase in this time of the Buyer's Market. Chances are I'm not telling you anything you didn't already know. However, I do have a little good news for you:
It is not quite as bad as you hear daily in the media; Property is still selling! People have to move everyday, for one reason or another. The keys for you are to price your property correctly, and to have the home ready to show better than all other homes on the market.
To price it correctly, be prepared for it to be priced at less than you would want in an ideal seller's market. A good Real Estate agent can work wonders with advertising, property matching skills, and negotiating tactics, but even the best of us are not capable of making a property worth $125,000 sell for $500,000 just because the client really wants it to. You cannot go on the fact that 3 years ago, the property appraised for "x" dollars either, because the market has changed in 2007 & 2008.
Anyone who goes agent shopping by demanding an agent list for a certain price or commission rate, will most likely loose the best agent for the job of selling their home, and end up with someone who is only interested in padding their listing portfolio.
Pick your agent based on their agressive marketing plan for your property, ask them to show you the comparables they used for formulating a list price, and then trust your agent to list the property at a competitive rate to get it viewed by the most people who are capable and willing to purchase in the range of your home's value.
Then - HELP your agent by having your property in the best possible condition for a showing - even if it costs you a little time and money to do so. Don't forget, it is a buyer's market, which means there are plenty of other properties out there for a buyer to choose. You are competing with spec homes which have never been lived in (where buyers are able to pick their colors), as well as all other listings in your price range. It may cost you $250 to repaint your living room a buyer-friendly color, but if not doing so results in a $5,000 loss in offer price or an additional 8 months on the market - well, you can see where I am going with that . . .
I always plan to take a potential seller to preview several other houses listed in the surrounding neighborhoods, so they can see first hand their competition. It frequently gives excellent ideas on how to stage, minimalize, or improve your property to blow the competition away and capture the shared audience! Plus, I like the one-on-one time with my home-sales clients, where we can freely assess the competition. Don't be afraid to ask your agent to take the time to do this with you; they should be happy to do so.
Other "tricks-of-the-trade" to get a leg up on the competition are to be proactive: Have a reputable firm do a certified home inspection. Get a new survey. Get a one year inspection guarantee. Make certain your home is under termite warranty. Your agent can advertise these items, all of which help to put the potential buyer's mind at ease (and hopefully makes them subconsciously wonder why your competition isn't offering them)! Plus, the majority of the items a buyer or buyer's lender would have to obtain between contract and closing are provided at no cost. Thus, shortening your time to closing and removing the most frequent hang-ups which prevent a contract from closing.
If you positively cannot allow yourself to sell for the price the market will bare (perhaps you are over mortgaged), but you must relocate / are facing foreclosure / etc, keep in mind that the rental market is strong right now. There are risks that go along with renting your property (and it assures you must rent in your new location until you are able to sell your property for the downpayment), but you might consider leasing it at a rate which will cover your mortgage payment until a better option is available.
Yes, it can definitely be tough to sell a home in today's buyer's market, but it may still be easier this year than next - one never knows. You also don't know how long your home may stay on the market. I would plan for a minimum of six months to closing right now. So, if you plan to move anytime within the next say, two years, call me to get your home listed Today. Best case scenerio - you follow all of my advice, and we get it sold sooner than you need . . . hey, it's a buyer's market right now - you can capitalize and find an excellent home to replace it!
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