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The real estate market has slowed down in many areas that were booming over the
last few years. Sellers in those areas got spoiled. It was only necessary to put
a sign out front, and buyers came. Homes sold in a matter of days. This is no longer
happening. If you want to sell your home in a slow area, what do you do?
Price It Right
Pricing your home is the number one key. Even if you have had your home appraised
in the past year think about having it appraised again just before listing it on
the market. Set your price according to the appraisal and the comps provided by
the Comparative Market Analysis (CMA) prepared by your Realtor.
Over pricing your home will turn potential buyers away immediately. To get a realistic
sense of what your home is worth now, check out sales in your neighborhood over
the past six months. You will need a good real estate agent to put the numbers in
context. What matters here is the number of bedrooms and bathrooms, the square footage
and other features that may be in particular demand in your area, such as great
views or proximity to transportation.
Once you have set an irresistible price, make sure the word gets out. At a minimum,
your Realtor should place your home on the local Multiple Listing Service, a database
of properties for sale, and advertise in the local newspaper or via direct mail.
Some 80% of home buyers now begin their search for a home online, so be sure your
Realtor has a comprehensive plan to market your home online.
Give Your House a Makeover
Before your first showing, clean the house like you have never cleaned before. Organize
your furniture to draw attention to the nicest features of your home, such as hardwood
floors or a fireplace, and pull back the curtains if you have a great view. You
might even seek a professional stagers help in showing off your abode. While these
steps help sell homes in any market, they move from optional to essential when prices
soften.
Offer Incentives
To make a sale in a slow market, you may also have to sweeten the deal. Small gestures
can often tip the scales. If you are planning on redecorating when you move into
your next digs, for example, consider throwing in your curtains or dining room set.
More sellers are also offering a home warranty. Sold through agents or directly
through providers like American Home Shield for $400 or so, these contracts cover
the cost to replace or repair major appliances that break within a year of a sale.
Aside from a price reduction, consider possible financial incentives as well, such
as offering to pay mortgages points. One point is 1% of the loan amount, charged
as prepaid interest. For example, instead of having an interest rate at 6%, a seller
might be able to pay points so that the rate is at 4.5% for the first year. Something
a homebuyer can easily relate to.
You could also provide down payment aid, or cover a portion of the buyer's closing
costs. Paying some or all of the first years Homeowners association or condo board
fees are an attractive incentive to first time home buyers.
Spread the Word
Put out as many marketing ambassadors for your home as you can figure out how to.
The truth is people do not really sell homes. What they do is bring them to the
attention of enough people who are shopping for a home that a buyer inevitably emerges.
Present your home to enough potential buyers, and it will sell even in a slow market.
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