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 Charlotte
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outdated, offer a carpet allowance up front.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
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