What was once a booming residential real estate
market across the country has slowed to a trickle.
Rising
prices over the past several years have lowered the affordability of homes at
the same time that overbuilding during those same years has created an
over-supply of homes. And now we have
more restrictive lending practices, leading to a dramatic reduction in the
number of qualified buyers. These factors have led to too few buyers looking at
too many houses, putting buyers back into the driver’s seat, and seller under
pressure.
It’s
a whole new world for home sellers. So, how do you get your house sold when the
market is so slow?
1.
The
right agent is critical. Any agent can list your house. But when buyers
are few you need a first-class real estate professional on your side. They’ll
help with everything from pricing to advising you on the other 6 points in this
article. Agents who really know the
market, and who work hard and consistently to do a good job for their clients
are the type of professionals you’ll need on your side.
2.
Price
your home aggressively.
When buyers are chasing too few houses for sale, sellers can ask high prices
and get them. Even when houses are overpriced for the market, sellers are
likely to receive some offers, as buyers are often desperate to find a home
that meets their needs. When things are slow, pricing is absolutely critical. Instead of pricing your home aggressively high,
as you could in the ‘hot’ market, you should consider pricing your home no
higher than the middle of the range for homes comparable to yours. And if you
need to sell your home quickly, you should consider pricing your home among in
the bottom 25 percent of comparable homes. Why? With few buyers chasing many
homes, you need to quickly get the attention of those who are serious about
buying, if your home is priced too high, you many never get buyers to even
consider looking at your home.
3.
Quickly
cut the price if you don’t get action. Everyone wants to sell their home for as much money as possible. Nobody
wants to “give” their home away. But homes that languish on the market in a
slow market often are forced to make one price reduction after another, as
buyers and real estate agents may begin to question why the home has been on
the market for so long. In a slow market with few buyers you may want to cut
the price to get the buyers’ attention, and make the sale more quickly.
4.
Curb
appeal. After pricing,
nothing will bring more potential buyers into your home than a house with
outstanding curb appeal. Take a walk down your street with a critical eye. How
does your home stack up from the outside? If it doesn’t stand out from the rest
then it’s time to get to work.
5.
Consider
home staging. The quickest
way to add home value to a home for sale is a fresh coat of paint. But after
you do that, you may want to consider home staging. If you select an agent with
staging experience, they can often help you with accent and accessory
pieces. For more unusual situations, your
agent may recommend that you hire an outside firm to do the staging. A home
staging professional will come in and take away some furnishings and rearrange
others to make your home show better. When home sales were going gangbusters
this was a technique used mostly by those selling high-end homes. When things
get slow and homeowners need to sell, more people find home staging
professionals to help them prepare their home to make it more appealing to
prospective buyers.
6.
Fix
stuff. The loose railing.
The broken pane of glass. The closet door off of its track. The leaky faucet.
They all need fixing. If you don’t have the time or skill, find a handyman to
go through your home and make repairs. Also, consider replacing the old roof
that looks like it might leak, the antique furnace, and the stained rug. When
there are few homes on the market, sellers sometimes offer cash at closing to
repair the roof or for the stained rug. With so many homes on the market,
buyers can choose to only bid on those that are in move-in condition. Fix what
needs repair before listing your house.
7.
Offer
flexible terms. Flexibility
is the key now. You’d like to close in two months, but the buyers might be in a
hurry and need to close sooner. Find a way to make it happen. You were planning
to take the appliances to your new home, but the buyers make a bid near the
asking price – including the appliances. Leave the washer and dryer
behind (and then go find a store that offers no payments on appliance purchases
for a year). And for those items that have deep sentimental value, make sure
they are removed prior to any showings. Competition between home sellers is
high – you don’t want to lose the only buyer who has looked at your home in a
month.