Selling a home in a market that is spiraling down is a very hard thing to do. People don’t want to risk buying a home, only to find out in a few years’ time that it is worth less than what they paid. What can you do as a seller to help increase your chances of selling a home in a down market? Assume that in a given market area, there are 100 homes listed in a six-month period; out of those, there are 60 that are sold within that timeframe. A well prepared real estate agent is able to pull and analyze this data from their local databases and conclude that there were 10 homes sold every month with an absorption rate of 10%, meaning that for all homes were to be sold, it would take a total of 10 months. Data revealed that the price mark down on a typical home is 96%, and days before a home enters escrow totals 140. What does this mean for someone looking to sell their average $100,000 home, in Market A? The probability of it selling in 30 days is 10%. If it did get sold, it would take 140 days for it to get a contract price of $96,000. There is also a 40% chance that a home may never sell. There are 4,000 Real Estate agents in the Orange County area. All of them have a different approach and advice on how to sell. It is wise to always consult a professional real estate agent to get the best advice and seek the proper approach. Here are seven common themes in ensuring the best approach.
- Price to sell. If the home is priced low enough, the theory goes, it will bring buyers in. This is one of the reasons sellers are often told to lower their price until it gets to the point where it doesn’t make sense to sell it.
- Offer a Commission Incentive. Offering to increase an agents’ commission will increase the incentive to bring in more clients.
- Fix up the property. Many homebuyers don’t have the patience or the financial resources to go about fixing a home. If you decide to fix it before selling it, then you will likely command a premium by saving the buyer time and money.
- Offer concessions. Home buyers need help in overcoming the major obstacles when it comes to qualifying for a mortgage. A seller can offer to help in the closing costs or repairs.
- Hold a property auction. If you have run out of all other options, this offers a fast-paced solution.
- List and they will buy. There are a few real estate agents who believe that they can get a house sold with minimum effort. The big difference though is selling or not selling the home.
- Don’t be average in anything you do. Being extraordinary is what will prompt a seller to pick your property over another. If a home doesn’t sell, some real estate agents tend to tell you it is the market to blame, but while we may not be able to change the market, we do have the ability to take the home from average to extraordinary. Often, the defining factor is getting the proper professional help in selling the home and choosing the best month to sell a house.
Contributor James Link