As the fall season brings the usual slow-down in home sales activity, many
regions of the country that experienced hot sellers' markets over the summer are
now seeing a change toward buyers' markets. But don't let that hamper your plans
-- if you prepare properly and make the right moves, you can sell your house.
One of the first things real estate brokers and agents will encourage you to
do if you're selling in a challenging market is to price your house
appropriately.
"We are experiencing a buyer's market," said Alice W. Baetz, an accredited
buyers representative from Grosse Pointe, Mich. "If you are a buyer this is good
because there is a wide assortment of houses from which to select. If you are a
seller it is especially important to have your house priced appropriately."
A real estate broker from Irvine, Calif. echoes similar sentiments.
"Today there are more homes on the market, and if the homes are not priced at
market, it will take 60 to 90 days to sell," said Maurice Sousse.
In Charlotte, N.C., job stability is a major factor in the current market but
low interest rates are contributing to homes selling.
"Our market continues to be soft; a true buyers' market," said Kelli Sheppe,
a Charlotte Realtor. "A significant percentage of the listings in our MLS have
had at least one price decrease since they initially came on the market. Layoffs
or potential layoffs by some of the area's large employers have dampened
home-buying enthusiasm. However, continued low interest rates have provided a
supply of buyers."
Some regions, like Austin, Texas, are seeing a pronounced slowdown.
"We're definitely in a buyers' market, but where are the buyers," said Julie
Nelson, an Austin Realtor. "Thirty-year-low interest rates and I am hearing this
story throughout the real estate community of a low volume of buyers, high
volume for sale. For sellers, that translates to pricing very competitively to
begin with and do those extra things that will make the house have super
appeal."
So what can you do to give your house super appeal? For starters, you should:
Offer incentives. If your carpet is old or outdated, offer a carpet
allowance up front. If a potential buyer knows this right off the bat, they
might be able to overlook the unattractive carpet - probably the first thing
they'll notice when they walk in the door. Or, offer to include your appliances
with the home. If you're moving into a new home, appliances may already be
included, or you may be ready to upgrade. This type of offer will be especially
enticing to first-time buyers who are putting most - if not all - of their
available cash into their down payment and closing costs.
Offer to pay the nonrecurring closing costs - the loan appraisal, loan
points, credit report, title insurance, and property inspections. This can be a
major motivation to cash-strapped buyers; these costs usually run about 3 to 5
percent of the cost of the house. Depending on your market and budget
situations, you may offer to pay part or all of the costs.
Get a professional home inspection before you put your house on the market.
Nothing will kill your deal quicker than a buyer's inspector finding a major
problem during the inspection process. Even if you reach agreement with the
buyer on who will pay how much of the repair work - or if you agree to pay all -
the fact that the buyer has to wait for the repairs could put a damper on their
plans, and even trigger them to break the deal, especially if there are plenty
of other comparable houses on the market.
Be flexible. When you get an offer and the buyer wants to move in sooner
than you'll be ready, make plans to stay in an apartment or with relatives until
your new place is ready. A month or two of inconvenience will surely be worth it
down the road.
Create good curb appeal. A home shopper's first impression is everything.
The moment they pull up to the curb, they'll make an instant judgment. You'll
want to be sure it's positive. You can begin by making sure leaves are raked up,
and your shrubs and bushes are pruned. Make sure bikes and toys are out of
sight.
Focus on your walls. If your walls are dirty, it will be an automatic
turnoff to potential buyers. Think about touching up the paint on your walls
before you put your home on the market, keeping the colors neutral and light.
Save your favorite reds and greens for your next place, where you'll be staying
put for awhile.
Make sure your home shows well. Get rid of all the clutter. Keep the house
clean and simple. If you have a lot of knickknacks, keep them out of sight. Make
sure there are no lingering pet or smoke odors. Set out some fresh flowers. Turn
on some light music.
Let the light in. Open blinds and curtains so plenty of light illuminates
the home's interior.
And, most importantly, be patient. Don't be too hasty in reducing your asking
price. But be ready to when the time comes. You'll want to talk to your agent
about how long homes are staying on the market in your neighborhood. The time to
think about reducing your price is once you pass that mark.
Published: October 28, 2002
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