When your local housing market is in a free fall and you have to sell, what do you do? You want top dollar, you may also need to sell in a hurry -- especially if moving day is right around the corner.
In a tight housing market, remember that you are competing with all of the other homes for sale in your neighborhood. The key to success is to make your home and the deal itself more attractive than what the competition is offering without giving away too much.
If you find yourself having to sell into a slow market, here are some tips to help you make your home more attractive and sweeten the deal to generate more interest in your home:
Price it to the market, don't be greedy. Most sellers tend to set the price too high, thinking their home is worth more than it really is. Check the sales prices of comparable homes that recently sold and the asking prices of comparable homes that are currently for sale in your neighborhood.
Obtain an appraisal in advance, so you know what the house is officially worth (based on the appraiser's professional opinion).
Use a seasoned Realtor, a veteran who has already experienced price wars in the housing market. According to the National Association of Realtors®, a home sells on average for 16-percent more when the seller uses as certified Realtor.
Have your home professionally inspected before showing it. Get everything repaired so lookers won't have an excuse not to buy.
Have your home professionally staged. A professional stager can transform an empty or overly cluttered house into a warm and welcoming home.
Don't move out before it sells, or if you have to move out, make sure you leave the home staged, so it looks lived-in. Vacant houses feel more like uninhabited caves than homes.
Be willing to pay closing costs for the purchaser, up to 6 percent. A slow market is usually that way due to a slow economy. Buyers are strapped for cash and may need you to help in some way with the financing.
Give your Realtor copies of all improvements to the home and any guarantees for anything like a new roof, furnace, or hot water tank.
Make sure your Realtor is marketing your home on at least eight Internet sites, including Craigslist and Backpage.
Realtor commissions are negotiable. Consider offering a higher commission to your Realtor as an added incentive.
Keep your home in ready-to-show condition at all times. Do not require a 24-hour notice.
Focus on curb appeal and making a good first impression. You do not get a second chance to make a good first impression.
Be open to negotiating on things like leaving furniture or appliances behind.
Although you may be tempted to take the first offer that comes along, be careful. Not all offers are created equal. Here are some warning signs to watch out for:
Someone tells you to take your house off the market for a period of time, and in exchange, the person will pay you more than the asking price later. This is usually a sign that the person plans on using your home as part of a mortgage fraud scheme in which he obtains a loan for more than the house is worth, pays you a little more than what you were asking, and pockets the excess proceeds.
A cash back at closing deal in which the person offers you more than the home is worth if you agree to kick back the extra money at closing.
The buyer is not pre-approved for a mortgage loan. This person can tie up your home, preventing you from considering better offers.
The person is offering no or very little Earnest Money Deposit. The lower the EMD, the more likely the deal will fall through.
The prospective buyers make the purchase agreement contingent upon their home selling, and for that to happen, several other transactions must occur first. This is know as the domino effect, and you should avoid it, if possible.
You can successfully sell a home into a declining market, and even profit from the sale, if you set realistic goals and work a little harder at it than your competitors. Just remember to work hard, stick to it, and avoid some of the common pitfalls described in this article.
Published: August 24, 2007
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Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker.
Throughout his career, Ralph has proven his commitment to helping other real estate and sales professionals build upon their past and present success, grow and expand their businesses, and provide a rich and rewarding future for themselves, their customers, their employees, and their families.
As president and CEO of Ralph Roberts Realty, Ralph has personally helped thousands of consumers realize their dream of homeownership. While selling over 10,000 homes (and buying and selling over 3,000 investment properties) throughout his 30-year career, Ralph has made the time to mentor and coach hundreds of professionals in real estate, sales, and a host of other fields. Ralph is a recognized authority on Real Estate and Mortgage Fraud; Residential Real Estate; Personal Salesmanship; Sales Force and Office Management, Motivation, Design, and Team Building; and Foreclosure Self-Defense and Loan Modification, fields in which he has demonstrated his commitment to preserving the American Dream of Homeownership.
Ralph's numerous websites, blogs, seminars, and speaking engagements engage, entertain, and educate both consumers and professionals. Ralph is also an accomplished author with several successful titles to his credit, including:
Power Teams: The Complete Guide to Building and Managing a Winning Real Estate Agent Team
Financing Real Estate Investments For Dummies (John Wiley & Sons)
Mortgage Myths: 77 Secrets That Will Save You Thousands on Home Financing (John Wiley & Sons)
Foreclosure Self-Defense For Dummies (John Wiley & Sons)
Protect Yourself from Real Estate and Mortgage Fraud: Preserving the American Dream of Homeownership (Kaplan)
Foreclosure Investing For Dummies (John Wiley & Sons)
Foreclosure Myths: 77 Secrets to Saving Thousands on Distressed Properties (John Wiley & Sons)
Advanced Selling For Dummies (John Wiley & Sons)
Flipping Houses For Dummies
52 Weeks of Sales Success (John Wiley & Sons)
Walk Like a Giant, Sell Like a Madman (John Wiley & Sons)
Cross-Cultural Selling For Dummies (John Wiley & Sons)
To learn more about Ralph, visit AboutRalph.com, check out his daily insights on real estate and mortgage fraud prevention at FlippingFrenzy.com, or visit his latest blog dedicated to helping distressed homeowners fight foreclosure, KeepMyHouse.com.
You can reach Ralph at or by calling (586) 751-0000.
Ralph R. Roberts, CRS, GRI is an award-winning and internationally recognized real estate agent, author, coach, and speaker.