Selling Your Home in a Buyers Market

Selling Your Home in a Buyers' Market

By Michelle Fradella, Broker
Pinnacle Real Estate Group

As the economy has begun to slow, the housing market has definitely become much more competitive. Many communities are beginning to see home sales and prices drop and the pendulum swing in favor of the buyer. In the real estate world, this is called a buyers' market, as the amount of available homes outnumbers the buyers. If you are a seller, there are ways to turn a buyers' market in your favor.

Hire a Professional
Now is not the time to go at it alone. In a buyers' market, homes tend to take longer to sell. So you want to make sure that your home gets the maximum exposure. Working with a qualified real estate professional, you get the benefit of an experienced marketer and negotiator who is familiar with real estate issues in your community. Your home will also be listed on a MLS database that other real estate professionals can access.

When selecting someone to represent you, interview at least three real estate professionals who are familiar with your area. Ask questions such as:

What's the average time their listings have been on the market?
How will your home be marketed?
What price can they get for your home? (They should be able to back up their answer with a Comparative Marketing Analysis.)

Also, obtain names of two or three of the real estate professional's most recent sellers.

Price It Right
In a buyers' market, it is vital to price your home competitively. It's understandable that you want to get the best price for your home. However, overpricing your home can cause you to eliminate potential buyers and lengthen the time that your home stays on the market. Some homesellers believe that if someone is really interested, they will counter-offer. Don't take that risk, especially in a buyers' market. If your home is priced too high, interested buyers may never even tour your listing.

It is true that you could always drop the price, but studies show that the first 30 days are the most critical. It is when most buyers and real estate professionals see the property and interest is high. The longer the property is on the market, the fewer the prospects.

Get Your Home In Show-Condition
Get your home in tip-top shape before any potential buyer views it. Remember, you only get one chance to make a first impression. Get rid of the clutter. Touch up the paint on the walls. Clean the carpet. Consider having your home inspected, and make any repairs. (If there are any repairs you decide not to fix, inform the buyers about the condition of your home and discount the repair cost from the selling price.)

Curb Appeal
Don't overlook the outside of your property. You don't want a buyer to rule out your home based on the outside appearance. The lawn should be trimmed, bushes and shrubs pruned, and leaves raked. The front of the house needs a clean, fresh appearance. Even the mailbox needs to be attractive and functional. (Believe it or not, a rusty, unhinged mailbox can turn potential buyers off.) And don't forget to put away bikes, toys and other items that may make your property seem cluttered.

Offer Incentives
Offering incentives can be just the impetus a potential buyer needs to select your property over others. Therefore, you may want to consider offering a carpet or paint allowance. If the buyer knows up front that there is an allowance for the worn carpet or much needed painted walls, they may be able to overlook those cosmetic flaws. You could also volunteer to pay for a professional home inspection or a home warranty. And depending on your market and budget, offer to pay some of the closing costs.

Don't be discouraged by the fact that there are several other homes surrounding you for sale. Remember that making the right moves at the very beginning of your homeselling process can provide you the upper hand you'll need in a competitive buyers' market.