Market data shows that as of June 2007, there are about 6 million homes for sale in the United States.
A few years ago, I can recall listing homes, and having offers come in before ever showing the place. I also recall working with buyers, and having to do make really drastic moves to submit an offer and then hope to get a response that was favorable. In fact, sometimes bids for property would go 10-15% over the seller's asking price. Do you remember those times? If you were a part of the real estate frenzy then, you are inevitably going into shock right now!
The market has cooled. Properties, even in prime areas are seeing longer market times, and dropped prices. Buyers have a host of inventory to choose from, and can often purchase for much less than asking prices. That said, here are a few tips for sellers trying to unload property. Tomorrow, we will talk about a few tips for buyers looking to buy.
Tips for Sellers selling in a slow market:
1. Consider a Realtor.
Most sellers don't know the value of a realtor's services, but in a market that is moving slow, the services of a professional are invaluable. Now more than ever, you will need direct access to a database of qualified buyers. In addition, you will need to have your property in front of real estate brokers and agents who can talk your property up to clients who may or may not be interested in your area. Besides having access to the multiple listing service, good Realtors have networks of mortgage professionals, home inspectors, home stagers, appraisers and others who are deeply grounded in the market. Now, that doesn't mean you should hire any old person who took a real estate class to pass the time in the Winter. But, if you carefully screen your Realtor, set specific goals, and work together, you will at least have the satisfaction of knowing that your property is getting exposure, and traffic.
2. Prepare to wait.
Most U.S. markets are moving slow in terms of sales, and therefore you may have to wait for the perfect buyer. If you are selling on your own, without a Realtor, prepare to come up with some really innovative ideas for marketing, and to spend money doing so. It will not be enough to simply throw up a sign, and a newspaper ad. Even with aggressive marketing, your home may not sell in 30 days. Be mindful of the pricing in your market, and know that the only way you will find a buyer is for buyers to know loud and clear that you want to sell!
3. Blend and Shine.
Sure, the purple walls with red accents was beautiful to you when you painted. But, does your home fit in with the integrity of the neighborhood? Visit open houses in your area, and check in on your "competition". No need to miss out on offers for something simple like paint, or vinyl flooring. Maybe some landscaping, or a cash bonus or incentive will work. Figure out what the standard is within your area, make the adjustments that are practical and affordable, and then add something extra just to make your home shine.
*Each week, on Monday we will take a look at something interesting going on the real estate market. Questions about your market? Email keisha@propertymaven.com. Also, feel free to note any observations in your home market.
We operate a home selling site and have seen a huge increase in the number of motivated sellers in the past few months. With how many homes are on the market right now so many are having a hard time selling their homes, and are going to great lengths to sell their homes. Hopefully the market will turn around next spring as predicted so sellers have an easier time in 2008!
Posted by: TSmith | July 16, 2007 10:06 AM | Permalink to Comment