News and Events
February 13, 2008
Tips for Selling Your Home
Any tips for selling my home in this slower market?
Right
now, slower market is a double whammy?sales are sluggish and winter weather
doesn’t help. Here are some six things for you to think about:
1.
Recognize
that housing markets are local: There have been a lot of headlines lately about
how bad the real estate market is nationally but home prices are like the
weather?very different in different areas. When the housing market was hot,
2.
Analyze
who is buying and selling in your area: What's your competition? How long have
they been on the market. This time of year, an easy dead giveaway are
“seasonally incorrect” exterior photos with green lawns and leaves on the
trees.
3.
Ask
the Professionals: Don't ignore the
elephant in the living room. When you interview real estate agents, ask about
the market conditions for your area, home style and price range. Specifically,
ask about the "absorption rate,” i.e. in these current conditions with the
current inventory, how long would it take the market to absorb or sell, all the
houses on the market? If the supply is much larger than the demand, ask potential
agents how they would price your home to offset that inventory.
4.
Know
what your house is worth: Studies show that 80 percent of home sellers only
interview one agent. That’s generally acceptable in a hot housing market but
now that it’s cooled off, talk to 2-4 agents. Pay $350 to get an appraisal from
a certified professional appraiser. Look at your comparables, and be objective?go
back only six months and be sure to compare apples to apples. If you live in a
30-year-old ranch, don’t compare it with the 10-year-old two-story ten blocks
away. Taken together, that information will give you a pretty good idea of what
your home is currently worth.
5.
Consider
strategic pricing: If prices in your area are dropping 1 percent each month,
and you want to sell within the next three months, you take 3 percent off your
price right off the bat to give yourself a competitive pricing advantage.
6.
Evaluate
whether you really have to sell now: If you’re in a situation where your move
is optional (or you might be able to rent the property until your local market
improves), waiting is a solid option. Why sell in a cluttered and oversaturated
market if you don’t have to? By not contributing to the surplus inventory, the
people who need to sell have a better chance to sell their homes. If you decide
not to sell, focus on making improvements to help add value.
