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50 Inexpensive Tips to Increase the Value of your Property 22.
Home Sellers QuizTAKE NOTE: If you have a house that really should be priced at $200,000 and you've got it listed at $260,000, you are trying to compete against homes that really are worth close to $300,000 and all of a sudden your home really is not competing well, You want to compete with what is available out there among homes similar to yours. Selling your house in a slow market may be difficult, but knowing a few tricks of the trade and being realistic about pricing can help make the sale.
1. A Sign of the Times
Signage may seem straight forward, but it's one of your most important sales tools. The sale sign should be two-sided, easy to read, and in excellent condition (a damaged sign can lower curb appeal). If your neighborhood is full of walkers, add a box of sales brochures. You may have to put up with everyone knowing your sales price, but word of mouth can be very effective advertising, especially if your area is desirable. If you add incentives such as a home warranty, post that on the sign as well.
2. Hedge Your Deal
Accepting a backup offer is one way to hedge your bets in an uncertain market. By having a second offer waiting offstage, you create incentive for your first buyer to carry through with the purchase. A backup offer can offset pre-closing issues such as unexpected repair problems, and can discourage your first buyer from renegotiating the contract. On the other hand, a backup offer might include troublesome contingencies or other unattractive terms. Be careful: Once you accept a backup offer, you are obliged to go through with the sale if your primary buyer falters.
Every seller dreams of listing in a market thick with buyers, and getting a full-price offer immediately from a pre-approved buyer willing to waive a home inspection and close at the seller's convenience.
The reality is far from that, especially in a sluggish market where houses can languish for months. Market forces can't be controlled, but often the reason houses don't sell is because they're overpriced and that's something you can control. After sprucing up your house, the best sales strategy involves being realistic about the value of your property and finding ways to entice buyers beyond curb appeal.
3. Pulling Out the Stops - Try these tactics to speed your sale:
1 Strategy Rationale: Pre-sale inspection and warranty A comprehensive home inspection combined with a home warranty reassures buyers that the property is in good condition and that certain repairs will be covered by insurance. Make copies of these documents for buyers to take away. Decorating allowance Offer an appropriate allowance (for re-carpeting, wallpapering, or painting) to a buyer who likes everything but your taste in decor.
2 Lease option: This allows a buyer to rent the property for a period of time with an option to buy. A percentage of the rent is set aside as the buyer's down payment, while you use the remainder to cover your mortgage. To increase the likelihood of a sale, put at least 30 percent of the rent toward a down payment.
3 Seller financing: Seller financing is most advantageous if you have substantial equity in the property. Options include buying down the mortgage rate, putting funds in escrow to cover several months of mortgage payments, and carrying back a second mortgage to help a buyer cover a down payment. Before you offer financial assistance to a buyer, consult your agent and a real estate attorney, and make sure the buyer is creditworthy.
Closing costs:
TIP: You can offer to cover nonrecurring closing costs, such as prepaid interest charges or the first year of property taxes. Paying points is an attractive incentive that you can also use as a tax deduction. Most lenders limit the amount of closing costs you can pay, but this can make a difference for cash-short buyers.
TIP: Remember, the longer your home is on the market, the less likely you are to get a full-price offer. Don't hesitate to take steps quickly after the first month goes by. If you make major repairs or offer incentives, check all your realtors advertising to make sure the incentives are showing up in the advertising in order to renew enthusiasm for the property.
TIP: If your home has been on the market for several months with no offers, it's time to meet with your agent and discuss the situation. Before you meet, ask your agent to get feedback from other agents who have shown your home. Correct any recurring issues. If the consensus is that your home isn't selling because of price, reduce the price as soon as possible.
TIP: Good agents should keep you informed about what they are doing to market your home. If your agent has not been doing this, ask for a detailed report.
