Selling During a Slow Market

The article below is from Realty Times.  I figured I'd share it with everyone since it seems to be pertinent to what we are facing right now.  The important thing to remember is that here in Atlanta, housing prices, as a general rule, HAVE NOT FALLEN.  We certainly have seen an increase in days on market and more inventory, but unlike many parts of the country, prices have remained steady.  I'll make comments throughout the article about what Pam and I feel are true for what we're facing here in Atlanta, and what may not be as applicable to us.  Our comments will be in Red!!

Selling Your Home in a Slumping Market by Ralph Roberts

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 the asking prices of comparable homes that are currently for sale in your neighborhood. (What ends up happening when you overprice your home is that you end up chasing the market with price reductions instead of getting ahead by pricing it right from the start! Remember, the price you'll get from a home is often directly proportional to length of time it's been for sale.)

• 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. (Enough said!!)

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. (We can't seem to stress this one enough!  Homes that are staged well tend to sell TWICE as fast as those that are not...and for top dollar too!)

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. (I would think that in our market, the number would be more like 3%...but it depends on how well you have priced your home.)

• 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. (It's sad, but true...listings with a higher commission paid to the buyer's agent generally get shown alot more.)

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 (however, note that the first offer received on a home is often the best one). 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. (We take this one a step further, requiring that any buyer submitting an offer on one of our listings be pre-approved, or receive a commitment letter from our preferred lender.  This ensures that the buyer is definitely able to obtain, and close on a deal.)
• The person is offering no or very little Earnest Money Deposit. The lower the EMD, the more likely the deal will fall through. (I don't know that I agree with this one...however, earnest money should be at least 1% of list price.)
• 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.

I hope you found that as interesting as we did!  It's essentially the same information we've been giving our sellers for years:)

Pam & Wayne