Selling Homes

Selling a home in a Buyer's Market

There's no doubt that a buyer's market can be challenging for sellers.  Yet it does not mean that sellers cannot enter the market - or that they cannot garner a fair price for their homes.  Home sales in a buyer's market may take longer.  But a little creativity can go a long way toward help sellers move homes, without having to significantly drop the price.

Price Your Home According to the Current Market. Just because a house comparable to yours sold for a very high price last year does not mean you will be able to realize the same price when selling your home now. Work with a full-service real estate professional to determine the appropriate, competitive listing price for your home. Remember that in this market, your sales associate may encourage a list price in accordance with others currently on the market, rather than those previously sold.

Be Realistic About Appreciation. Since the housing market began to slow significantly in late 2007, home prices have fallen all over the country.  Yet understanding trends in your specific market is critical - as not all areas have experienced the same drops.  Some regions of the country have remained more steady relative to prices, and are even back to experiencing modest appreciations.  And if you bought your home many years ago, the gains you made in the decades before the downturn may still be far more than recent drops. So speak with your real estate professional to get a realistic view on how your home has gained or lost, relative to its value and potential price. 

Make Your Home More Marketable. When a buyer sees your house for the first time, a critical first impression is made. If applicable, maximize curb appeal by trimming trees and planting flowers. A fresh exterior coat of paint might also prove valuable. Consider neutral colors for interior walls and carpets. Dark colors on walls, along with unnecessary clutter, make rooms look smaller.

Conduct a Full Home Inspection. If repairs are required, it is a good idea to go ahead and fix the problems. Potential buyers will cast an extremely critical eye over your home and, in a situation when more houses are available on the market, they may take a pass on a home that needs too many repairs. Be sure to have the home inspection report available for prospective buyers itemizing all of the repairs that have been made and the associated cost for each.

Offer a "Seller's Contribution." A seller can sweeten the deal by offering assistance to the buyer in ways that do not require lowering the asking price. These tactics can help your home to stand out from the crowd. For example:

· Offer to buy down the interest rate on the buyer's mortgage.

· Offer to pay a portion of the closing costs.

· Cover the buyer's mortgage payments for up to the first six months. Depending upon the size of the mortgage, the buyer can save several thousand dollars and the seller still gets the original asking price for the home. It is generally more financially advantageous to do this than dropping the asking price by $30-, $20- or even just $10,000.

· Many condos and houses across the country belong to homeowners' associations that require annual dues. Paying the first year's fees could be a big incentive to a buyer nearing the limit of his or her liquid assets.

· Offer to pay off a buyer's bills. According to Realty Times, some loan programs allow sellers to pay off the credit card debt or auto loans of the buyer which will help him or her qualify for a better mortgage and prevent the need to buy a smaller, less expensive house.

Looking Through the Buyer's Eyes

Below are questions to ask yourself when preparing your home for sale, to ensure it looks the best it possibly can to the buyer's eyes.

Exterior

• Does your yard look well maintained?
• Are the trees and bushes trimmed?
• Is your lawn mowed and edged?
• Is your lawn free of weeds?
• Are the decks and patios clean?
• Does your house need painting?
• Are there any exterior holes or cracks?
• Are your walks and porches clean and in good repair?
• Does your roof leak or sag?
• Are any shingles or tiles missing?
• Is your chimney in good shape?

Carpeting/Walls/Ceilings

• Are your carpets clean and in good condition?
• Do your carpets need stretching?
• Are there any pet or smoking odors?
• Do your walls have any cracks or holes?
• Do your walls need painting?
• What about that wallpaper?
• Do your ceilings have any water stains, cracks or peeling?
• Do your ceilings need painting?

Kitchen

• Are your appliances clean and in good working order?
• Are your cabinets in good condition?
• Are your countertops in good condition?
• Is your tile grout clean?
• Is your sink stained, chipped, or in need or re-calking?

Bathroom

• Do your faucets shut off completely?
• Do your sinks drain freely?
• Are your toilets in good condition?
• Are your shower doors shiny?
• Do your tubs need caulking?
• Is your floor in good condition?
• Are your vanities and mirrors in good condition?

Living Room

• Is your fireplace clean?
• Is the fireplace screen in good shape?
• Are all drapes, shutters and shades clean and working properly?
• Are any window screens bent?
• Do all the windows open and close easily?
• Are the windowsills clean?
• Are your doors in good condition?
• Do any doors sag or stick?
• Do the locks work?
• Is the paint in good condition?
• Do the doors seal tightly?

Basement/Attic

• Is your basement/attic organized?
• Are they well lit?
• Are they clean?
• Are the stairs in good repair?
• Do the doors open and close easily?
• Are there any signs of insects or rodents?

Garage

• Is your garage organized?
• Is it well lit?
• Is the floor swept?
• Are there oil spots or other stains on the concrete?