Tips for Selling in a Buyer's Market
By Michele Dawson
As the fall season brings the usual slow-down in home sales activity,
many regions of the country that experienced hot sellers' markets
over the summer are now seeing a change toward buyers' markets.
But don't let that hamper your plans -- if you prepare properly
and make the right moves, you can sell
your house.
One of the first things real estate brokers and agents will
encourage you to do if you're selling in a challenging market
is to price your house appropriately.
"We are experiencing a buyer's market," said Alice
W. Baetz, an accredited buyers representative from Grosse
Pointe, Mich. "If you are a buyer this is good because
there is a wide assortment of houses from which to select.
If you are a seller it is especially important to have your
house priced appropriately."
A real estate broker from Irvine, Calif. echoes similar sentiments.
"Today there are more homes on the market, and if the
homes are not priced at market, it will take 60 to 90 days
to sell," said Maurice Sousse.
In Charlotte, N.C., job stability is a major factor in the
current market but low interest rates are contributing to
homes selling.
"Our market continues to be soft; a true buyers' market,"
said Kelli Sheppe, a Florida
Realtor. "A significant percentage of the listings
in our MLS have had at least one price decrease since they initially
came on the market. Layoffs or potential layoffs by some of the
area's large employers have dampened home-buying enthusiasm. However,
continued low interest rates have provided a supply of buyers."
Some regions, like Austin, Texas, are seeing a pronounced
slowdown.
"We're definitely in a buyers' market, but where are
the buyers," said Julie Nelson, an Austin Realtor. "Thirty-year-low
interest rates and I am hearing this story throughout the
real estate community of a low volume of buyers, high volume
for sale. For sellers, that translates to pricing very competitively
to begin with and do those extra things that will make the
house have super appeal."
So what can you do to give your house super appeal? For starters,
you should:
- Set your price competitively.
- Offer incentives. If your carpet is old or outdated, offer
a carpet allowance up front. If a potential buyer knows
this right off the bat, they might be able to overlook the
unattractive carpet - probably the first thing they'll notice
when they walk in the door. Or, offer to include your appliances
with the home. If you're moving into a new home, appliances
may already be included, or you may be ready to upgrade.
This type of offer will be especially enticing to first-time
buyers who are putting most - if not all - of their available
cash into their down payment and closing costs.
- Offer to pay the nonrecurring closing costs - the loan
appraisal, loan points, credit report, title insurance,
and property inspections. This can be a major motivation
to cash-strapped buyers; these costs usually run about 3
to 5 percent of the cost of the house. Depending on your
market and budget situations, you may offer to pay part
or all of the costs.
- Get a professional home inspection before you put your
house on the market. Nothing will kill your deal quicker
than a buyer's inspector finding a major problem during
the inspection process. Even if you reach agreement with
the buyer on who will pay how much of the repair work -
or if you agree to pay all - the fact that the buyer has
to wait for the repairs could put a damper on their plans,
and even trigger them to break the deal, especially if there
are plenty of other comparable houses on the market.
- Be flexible. When you get an offer and the buyer wants
to move in sooner than you'll be ready, make plans to stay
in an apartment or with relatives until your new place is
ready. A month or two of inconvenience will surely be worth
it down the road.
- 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.
- 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.
- Let the light in. Open blinds and curtains so plenty of
light illuminates the home's interior.
And, most importantly, be patient. Don't be too hasty in
reducing your asking price. But be ready to when the time
comes. You'll want to talk to your agent about how long homes
are staying on the market in your neighborhood. The time to
think about reducing your price is once you pass that mark.
The Realty Times
Published: October 28, 2002
www.RealtyTimes.com
|
