Selling your home in a down economy
Challenging economic conditions mean the real estate market is hot for buyers, but a graveyard for sellers hoping for a good deal. The housing market in the United States is at its lowest point in nearly three decades. The Mortgage Bankers Association states that in 2011, 8 million Americans were at least a month behind on their mortgage payments with 5 million of these homeowners two months behind. With a large number of homes for sale, prices are falling rapidly and sellers are falling into a trap. Here are some tips for selling your home in a down economy at a reasonable price.
Find a great real estate agent
Although you can try to sell the property yourself, it is too much to ask to list your home and do all the legwork without real knowledge of the industry. Even though a real estate agent will cost you 3-6% of the sales price, their experience could easily make up for that difference. Find a local agency that is familiar with your neighborhood, including knowledge of comparable properties in the area, school systems, etc. Check the real estate agent’s sales history in recent years. You want a successful real estate agent who is not too busy to give your property their full attention.
Marketing plan
Your real estate agent is responsible for producing a marketing plan, but it is your duty to familiarize yourself with the plan, as it is an essential element in generating traffic and getting more people to see your home. Your property must be visible on major Internet sites such as realtor.com. The best real estate agents have their own website, so make sure your property is displayed there as well.
Preparation
This is your chance to shine. Walk through the house with his agent and he should be able to point out things that might turn off potential buyers. The good news is that your home prep work can be done on a relatively tight budget. Take care of the exterior of the property first with neatly trimmed hedges and colorful flowers which are always a bonus. Repair any loose bricks or handrails and also make sure the roof is in perfect condition.
Make sure all walls are painted and carpets are professionally cleaned. Eliminate all odors to leave a fresh smell and move the furniture to make the living space look as big as possible. If you can’t get your property looking immaculate by the time the first visitors arrive, your home will remain unsold.
Price
Look at active listings, pending listings, and recent stats for homes sold that can be reasonably compared to yours. However, be careful when looking at sales prices, as those sales could have taken place a few months ago. Economic conditions can change very quickly, so you may need to adjust prices to fit the existing market. Pay special attention to list prices as this is your competition.
Once you’ve followed the steps above, you should be quick to follow up on queries. Your real estate agent typically handles follow-up activity, including emails or phone calls from interested parties. Hopefully, you’ll receive a lot of interest, thus improving your chances of receiving a fair price for your home.