| |
If your home has been on the market for quite some
time or if you feel that your home will be harder to sell than others,
the following section looks at strategies for hard to sell homes.
One of the first questions most sellers ask
themselves in this situation is, "What am I
doing wrong? Is it the house? The local housing market?
Is it a bad time to sell?"
Before you try any of the creative techniques
listed below, look for the obvious: how well did you price your
home and what condition is the home in?
How high (or low) you priced your home in relation
to the market will have a great effect on how quickly your home sells.
Price it too high and your potential buyers will go down the street to
buy your neighbor's home. Price it too low and you run the risk of
losing potential profits from the sale (be sure to read the section on
Common
Pricing Mistakes). In many real estate markets where there is a lot of
competition, a few thousand dollars can make a difference between for
sale and sold.
As discussed in earlier sections, the condition of
your home will have a significant impact on a buyer's purchasing
decision. Deciding not to paint the inside or being too lazy
to pull the weeds from the front yard can be the difference between a
quick sale and little sales activity. Your home's
curb appeal, the
term used to describe how a home looks to a buyer, should make a buyer
want your home, or at least want to view your home. Be sure to spend those few extra hours to clean up
the property to make is as "show ready" as possible. Follow the
tips outlined in the sections
Inside
preparations and
Outside
preparations to maximize your home's curb appeal.
Sometimes a problem may not exist with the home or
the asking price. Instead, more time is necessary to sell the
home. As discussed in previous sections, you should know the
average market time for your neighborhood and the type of real estate
market you are facing. If it has only been a week, relax...no one
ever said it would be easy (or stress free).
If you find that you have your home well priced and
you have done all there is to spruce up your property's condition,
consider the following strategies to get your property to sell:
-
Lower the sales price. The lower you
go, the quicker it will sell.
-
Fix the problem. Sometimes a seller
will face a repair job that isn't worth fixing. As a result, he or
she will lower the asking price to compensate for the necessary repairs.
Unfortunately, a buyer does not have an imagination, which could keep a
home on the market longer. If the repairs mean the difference of
selling the home or eventually selling the home, consider fixing the
problem and adjust the sales price. Buyers typically do not want
someone else's problems; rather, they would prefer to unpack their boxes
in a home that is "move-in ready".
-
Make it easy for your buyer Offer
buyer incentives, such as offering to pick up the buyer's closing costs,
so that more people with less cash are able to purchase your home.
Talk with a loan officer at a local mortgage company and have him or her
create informational payment flyers showing the monthly mortgage
payment, qualifying options and cost expectations. If you are
willing to assist with the closing costs, highlight the fees on the
sheets to show buyers how easy it is to move in.
-
Prequalify your home for Down Payment Assistance
Programs. In the past couple of years, there has been a
proliferation of non-profit organizations that will offer down payment
assistance or loan grants to eligible buyers. As a seller, you
would be expected to give anywhere from 1% to 6% of the sales price.
By offering such a program, a buyer could purchase your home with no
money down (and if you are willing to drop your price a few percent, why
not keep your current asking price and offer to "give away" your home to
eligible buyers).
-
Get creative with a lease option A
lease option allows potential buyers that do not readily qualify to
purchase your home a means to eventually buy the property. If you
do not have to tap into your equity right away, give someone the
opportunity to buy who would not otherwise have the ability to do so.
For more information on lease options,
click here.
-
Offer seller financing. For many
buyers, the question is not whether or not they can qualify to buy the
home; rather, the question revolves around having sufficient money for a
down payment. For a segment of the buying public, the down payment
requirements can exceed 10% to 20% if they have had credit issues.
From a lending standpoint, it is sometimes acceptable for the seller to
loan the buyer a portion of the down payment, often referred to as a
seller-carryback. If you own your property free and clear, you
could set up short term financing for potential buyers until they are
able to refinance the mortgage...while you collect interest from the
loan. For more information, read the section on
Special
situations.
-
Add your home to the multiple listing service.
For a full or partial commission, a real estate agent can add your home
into the multiple listing service used by real estate agents throughout
your area. The tradeoff for the additional exposure is the 3% to
6% real estate commission you may have to pay if a real estate agent
sells your home.
-
Offer real estate agents special incentives.
If you are willing to pay an agent a co-broke (normally a 3% commission
for selling your home to one of his or her clients), sweeten the deal by
adding a selling bonus, say a 4% commission instead of a 3% commission. You could easily create a flyer to be
distributed throughout your area's real estate offices detailing your
home and the special incentive.
-
Rent out the home. Worse case
scenario: become a landlord by renting out the home.
|
