Selling in a Buyer's Market
While it may be more difficult to sell a house in some markets than it would be in others, you still shouldn't need to give away a new sports car or bury a religious statute in the front yard to find plenty of ready, willing and able buyers.
Instead, here are eight more effective ways to sell a house in a buyer's market:
1. Price To Sell. When the supply of for-sale houses on the market exceeds the demand for those houses, buyers seek out properties that are priced right. That means a for-sale house needs to hit the market at the price it's really worth today, not the price it might have been worth six months ago or might be worth again six months in the future. Wishful pricing doesn't sell houses.
2. Keep the Exterior Spiffy. The drive-up appearance of a house makes either a positive or negative first impression that may weigh heavily in the buyer's overall opinion of the property. Keep the front lawn green and trimmed. Clear away any rubbish. Remove any dead plants. Sweep the front porch and the driveway, hose off the front of the house, clean the doorknocker, mailbox and other exterior items. Drive up to the house and make note of your own first impressions.
3. Listen to Feedback. When prospective buyers come into the house, listen to their comments and feedback. If several people are turned off by the same defect, weigh the cost of repairing it against the longer time it otherwise may take to sell the house. But don't over-beautify a house beyond buyers's expectations in the local market.
4. Advertise on the Web. The Internet is today preeminent as the many buyers's preferred home-shopping venue for buyers. Consequently, a description and multiple pictures of the house should be on as many Web sites as possible. The description should appeal to buyers and highlight the best features of the house and the locality.
5. Know the Market. Savvy sellers check out other houses that are for-sale in the neighborhood and consider how those competitors compare with the house they want to sell. Open houses are a good opportunity to conduct this type of research.
6. Show and Sell. Very few buyers will purchase a house sight unseen. Don't overly restrict the days and times when buyers can walk into the house and look it over. If you can't be there personally, hire a real estate broker or place a lockbox on the property to allow authorized buyers to enter unescorted.
7. Split the Difference. In a seller's market, sellers call the shots. But when a market is balanced, negotiation becomes crucial. Sophisticated sellers don't sneer at seemingly low-ball offers or allow minor concessions to kill the entire deal. Instead, they figure out the buyer's motivation and look for win-win compromises that can meet their own objectives as well as the buyer's demands.
8. Call in a Professional. If you decide to list a house for sale with a real estate broker, interview at least three who are active in the local area. Ask about their qualifications, experience and marketing plan to sell the property. Choose a broker who has sold other houses that are similar in price, location and condition. For more information, consult the Federal Trade Commission's new brochure, which explains brokerage commissions, defines basic types of listing agreements and suggests questions to ask prospective agents.
Copyright 2006. Marcie Geffner. All rights reserved. No part of this article may be used or reproduced in any manner whatsoever without written permission of the author.
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