Selling Your Home in a Tough Market -- Part 1

By Peter McCullough

October 1, 2008

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So, you want or need to sell your home. You've been watching home prices fall over the course of the last year and the pace seems to be increasing. You know that there are a lot of homes on the market and that buyers have a lot of bargaining power.

What to do? Here are a few suggestions that may not make you happy, but they are realistic. If you have the choice of waiting to sell your home, you may want to consider that option. Real estate is cyclical and the market will shift, eventually.

There are two sides to preparing to sell your home. You need to prepare yourself mentally for the process. You will also need to make sure your home looks as good to a potential buyer as it does to you.

If you know that home prices have come down, then you cannot expect to get the same amount of money from the sale of your home that you may have received one, two or certainly three years ago.

So, if your Realtor suggests to you a price which seems to be less than what you would expect, there are reasons for that. This does not mean that you simply roll over and accept whatever number is provided to you.

As a home seller, you also have a responsibility to gather as much information as possible about recent sales of comparable homes in your neighborhood. Any good agent will offer you this information (Comparative Market Analysis) without being asked.

Also inquire about a net gain sheet. Different agents may have different terms for this document. Quite simply, this document lists all costs associated with the sale of your home and will provide you the most accurate picture of how much money you will net from the sale.

Now that you are mentally prepared to sell your home, it is time to take a look at your home objectively. Remember, this will not always be your home. You are trying to make it look nice to someone who may not share your tastes.

Preparation of your home for the buyer is an absolute key element of a quick, painless and successful sale. You have heard of "curb appeal". This refers to the way your home appears to a prospective buyer from the time they initially drive up to your home, walk through the property and then return to the car to discuss how they could make your house their new dream home.

There are many elements of preparation of which you should be aware. Worn carpeting, low light levels, cluttered rooms and closets are all very negative aspects of a home and will definitely discourage a potential buyer.

Barking dogs, noisy neighbors, a filthy swimming pool and peeling paint are just a few more things which will deter a buyer. Listen to suggestions your agent proposes. This can save you a lot of time, can increase the sale price or at least maintain a fair price for your home.

Home staging. This is a process by which a home, particularly a vacant home, is prepared for buyers to view. Some real estate agents do this work themselves; others will hire a staging professional. The homeowner pays the cost of staging.

A staging professional will place furniture, rugs, plants and other decorative items to give the vacant house a homey look. A potential buyer needs to envision themselves living in the home. It is very difficult to accomplish that in an empty house.

Put yourself in the buyer's shoes. If you were looking at the purchase of a home which required a lot of repairs, smelled like old socks and was painted fuchsia and chartreuse, would you ask for a price reduction? Of course, you would!

If a home is warm and welcoming, smells of freshly baked cookies and causes the buyer to picture themselves living there, your sale will move along quickly and painlessly.

Unless you have considerable experience with real estate transactions, hire a professional. Find an agent with whom you are comfortable. Get to know them and trust their judgment and knowledge.

You will pay them a commission. Under current market conditions, they will earn it. Rarely, if ever, do I perform my own surgery. There is a good reason for that. I pay for someone else's expertise. The wise choice would be to let a real estate agent or broker provide their expertise for you.

Also read Part 2 of "Selling Your Home in a Tough Market" exclusively featured on Yahoo! Real Estate by HomeGain.

Visit www.homesalemaximizer.com to find out 10 home improvements to make to your home before putting it on the market.

Or visit www.homegain.com to find a Realtor, get the value of your home or find homes for sale.

© 2008 HomeGain.com, Inc.

Reader Comments
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Dorel T
Article Rating:
yea right brokers r nice until they get u r listing and then wait a month nothing hapends they call hey u wanna sell then drop the price then wait again until u r lucky thats all its its grab the listing then wait for another broker to bring a buyer an split comision and ur stuck for 6 months and wait and wait most of them r werry leasy ppl i have my hose listed for 2 months nobody open my door i m werry dicusted of these brokers, ppl work hard o yes and i chose my broker from home again expert kruks
bonniestrassmann
Article Rating:
Very good article. I manage a large Real Estate Office and this is what we try to tell our Sellers exactly. Staging is very important and being very realistic when pricing the home right from the beginning. If you are interested in a Career in Real Estate I'd love to help you get started. Bonnie.strassmann.Dilbeck.com or bonnie.strassmann@dilbeck.com
Rick
Article Rating:
Good post. It is always amazing how important curb appeal and first impressions are. Most buyers are at least partially influenced by emotions, and it certainly is key for them to envision themselves in the home. As a Listing Agent, the price discussion is a huge component with my sellers. The fear of many is that no matter what the price goes to, they will still have to reduce significantly as everyone wants a deal. I believe we do not give enough credit to the buyers. Especially in today's market, those people who are buying are relatively savvy. With the help of a good Agent, they tend to understand the relative values of various property. There have been a few significant price reductions for ski homes at Schweitzer Mountain recently, and each time the house has sold quickly for close to its new listing price. Get the price right the first time, otherwise you will be chasing the market even further down. Contact me at Rick@SandpointResortRealty.com.

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