Do’s and don’ts in this market
Q: Can you give me and all of your readers some do’s and don’ts about (your opinion) the correct moves in this market?
All of us
A: OK all of us, here goes. Remember this is just my opinion.
Real estate values have been falling quickly across much of the U.S. The pace of existing home sales is down sharply as well, with many homes languishing on the market for months and months.
There are strategies that can help you sell your home-for a fair price-even in hard hit areas.
BEST MOVES FOR SELLERS
You might be very aggressive in the current environment, especially if your local real estate market has a glut of homes for sale.
Here’s how:
DON’T START WITH A HIGH PRICE. Asking price is the most single reason that a home doesn’t sell. In this buyer’s market, it is a mistake to set a high price and assume you can lower it later, if necessary, in negotiations. Area real estate agents pay the most attention to listings when they first appear on the market. These days, they may not even bother to show your home to buyers if it is overpriced.
If you start out too high, by the time you do lower your price, real estate agents will have newer listing to show buyers. The buyers who do see your home will view your price cut as a sign of desperation and bid lower- if at all.
The correct price to ask for your home in this market is towards the low end of the range of prices being asked on comparable homes currently for sale in the neighborhood.
Pricing your home as a slight bargain ensures that as many potential buyers as possible will walk through your door. This is crucial at times like these when sellers outnumber buyers.
RECHECK THE ASKING PRICE OF COMPARABLE LISTINGS every two to four weeks if your home has not sold. If local real estate prices are falling fast, you might have to lower your price to remain competitive. When you do a price reduction, make it large enough so the new price is very competitive with comparable homes or is even a “best buy.”
IMPORTANT: The amounts your neighbors sold their homes for a year or two ago should not even enter your thinking when you set your asking price.
It was a very different market then, and those prices are irrelevant today.
HELPFUL: If your home is not attracting many showings, the price is probably the problem. If it is attracting showings but not offers, the home itself is probably the reason and most likely to blame.
FIX IT UP FIRST: “Fixer-uppers” tend to be ignored in slow real estate markets because buyers can find good deals without breaking out their tools. If your home is in need of substantial repairs, it is best to get the work done first before placing it on the market.
PAY ATTENTION TO CURB APPEAL: Home buyers have so many options that if a property doesn’t look attractive from the street, they will drive past it without even stopping.
WHAT TO DO: Spend a weekend beautifying the front of your house. Replace damaged window screens, tidy up the lawn and landscaping, pressure-wash the sidewalk, add mulch around trees and in flower beds. If necessary, have the home’s exterior repainted, particularly the front door and trim and upgrade outdoor lighting fixtures, doorknobs and your door knob switch or knocker. These small details can evoke an emotional reaction in a home shopper that can lead to a sale.
There is a lot to cover and I will continue next week.
Have a real estate question? Write, call, fax or e-mail:
Bob Jeffries, Realtor,
Century 21 Birchwood Realty, Inc.
4040 Del Prado Blvd., Cape Coral, FL
239-540-6659 Office 239-542-7760 Fax