The Art of Selling Homes in a Distressed Market
Ever since the economic melt-down beginning at the end of 2008, real estate markets around the globe have been experiencing tough times.
Within the United States, many cities have experienced sharp drop in prices while the prices have remained stagnant in the others.
Fewer cities across the country can boast of healthy real estate prices today. In neighborhoods that attract healthy prices from a sellers’ perspective, buyers are fewer and it takes several weeks before you can close a deal. Given these conditions, selling a home in a distressed market can be even more challenging. The following tips are designed to help you find that elusive buyer and close the deal.
This is the most crucial part of selling your home in a distressed market. The buyer – when he/she comes expects the pricing to be below the going market prices for an identical home. He/she is walking into a distressed market with price as a major driver. On the other hand, you cannot sell your home at a price that is ridiculously low. One way you can reach a middle path is by culling out the price movements in your neighborhood over the past several months and presenting it to the buyer. This way, it is easier to fix a threshold limit to start negotiation.
You know how important it is to ensure that you present your home to the buyer in a compelling condition. The manner in which you present your home should produce the ‘Who’ effect and do more of the talking by itself. Your kitchen is the most organized and well-kept place in the entire neighborhood and the baths are the envy of professionals in the hospitality industry. Strive to achieve these two goals and you are well past the major hurdles in selling your home.
A professional real estate agent can be immensely helpful in getting your home sold at a decent price. Choose your agent wisely. Examine his/her past performance and even try to talk to the past customers. Inspite of all the information that you can gather from the internet, your agent has access to more relevant information and the most recent happenings. The digital world can only supplement the human brain and not replace it. A professional real estate agent can also provide you with valuable information on staging your home, pricing, adding value to your offer and more.
Your mortgage lender is an interested party in the transaction. The buyer may have difficulties in obtaining a fresh mortgage to complete the transaction with you. Getting your mortgage lender into the act can be a smart move. You can potentially take away plenty of pains associated with obtaining a fresh mortgage and offer a tailored solution from your mortgage lender. Often times, this works even better than a discount on the prices.
Help the buyer get a feel that it is just that the markets are depressed and that your home by itself is still a good place to live in. Add some value by offering freebies like a car or other expensive gadgets that he/she can use. These small steps can potentially make the difference between closing the deal and losing that buyer who was almost ready to sign in.