I originally posted this article on our company website in July 2007. 

According to the Mid-Florida Regional MLS statistics, in month ending June 2007 in Orange & Seminole Counties there was only 1 sale for about every 18 properties on the market (1,431 sales closed vs. 25,923 listing inventory), so in order to sell you need to make your house stand out in a big way. These are general suggestions for helping to sell your property:

1. Price it right - below market value preferably. We typically recommend 5-10% under the other active listings nearby. For condominiums, townhouses, properties in outlying areas, and properties in areas where you are competing directly with the builders, we typically recommend 10-15% under the other active listings nearby. Unfortunately, price is the main thing. Once the property's price goes over the median value which in May was $249,900 in Orange & Seminole Counties, the percentage of buyers that can even afford your house goes way down. The PITI payment of a 249K house with 100% financing at a decent mortgage rate will be almost $2,000 per month (which means the buyer/family needs to earn about 6K per month or 72K per year for the median priced home). There are ways to buy down the interest rate by paying points to the lender. Most cities and counties have down payment assistance and bond programs which can help lower the monthly payment also.

When pricing consider the bracket it is in and the psychological impact it has. For instance a price of $299,900 looks extremely better to a buyer than a price of $305,000. This lower price also puts the property into a lower price bracket on sites like Realtor.com and FloridaLivingNetwork.com. Proper pricing should greatly increase the MLS & internet viewings and ultimately the showings of your property.

2. Offer incentives to buyers and Realtors - closing costs and concessions to buyers, bonuses and higher commissions to Realtors. This is what many of the builders are doing to move out their inventory. We have seen everything from plasma televisions, Rolex watches, Bahamas vacation packages, a Mini Cooper car, and the obvious monetary incentives like paying property taxes, condo or HOA dues, or mortgage payments for a given amount of months. Of course any concessions have to be disclosed to all parties in the transaction including the lender.

3. Offer creative terms like seller financing or lease purchase (rent-to-own), if you can. Even offering to hold a 2nd mortgage or take a trade of something for a down payment (car, boat, land, stocks, etc.) can help to attract buyers. To cash out, the seller financed note/mortgage can be sold to a note buyer at the closing for a discount.

If you absolutely get stuck and cannot sell, you can try and re-negotiate your loan with your lender by doing a forbearance agreement, mortgage modification, or a short sale. A seller might consider selling "subject to" their existing mortgage and allow the new buyer to continue making the mortgage payments while not paying off the loan until some time in the future - this option must be carefully considered because the seller's liability and credit are still affected until the loan gets paid off in full. You can also try and rent out your property to a tenant until the market rebounds.

4. Make sure the property shows great. The most important things are curb appeal (most people make up their mind of whether they have any interest within a few seconds of seeing the house from the street), kitchen and baths preferably upgraded (the most important rooms), bonus/sizzle features to be a pleasant surprise to the prospective buyers (crown molding, Jacuzzi tubs, stainless steel appliances, etc.). Also make sure the house is clean and tidy so as not to distract or turn off the buyers once they get inside. Builders and homeowners are also "staging" their properties with furniture, pictures, and decorations to make a house look lived in as opposed to sitting vacant.

Selling a property as a fixer-upper or handyman special can often be a big mistake unless you are planning to sell it at a wholesale price of 20% or more off of retail. Most people have no imagination and cannot see beyond even cosmetic repairs. Jobs that might truly cost only $2,000 can seem like $10,000 to a first-time homebuyer. On top of that the house may not pass a conventional lender's inspection or a 4-point insurance inspection and thus the amount of buyers available are limited.

Selling a property "as is" even if it needs minimal repair can still be intimidating to a buyer. As is properties seem to be stigmatized in the minds of many buyers, and thus they expect a big price adjustment to compensate. The whole idea of "as is" can often spook buyers from making an offer just because they are afraid there might be all sorts of hidden defects.

5. Make sure the house is easy to show. If buyers and Realtors have to jump through a lot of hoops and schedule appointments at inconvenient hours to see inside the house, then they might just skip over your house and move on to the next house that is vacant with a lockbox on it. If you are using voice mail or an answering machine for people to leave messages, please return your calls promptly. One of the biggest complaints we hear from buyers and Realtors are that sellers take hours or even days to return a phone call. Not returning messages quickly is a great way to lose a showing - a showing that might have resulted in a sale of your property.

6. Advertise heavily and target it toward the type of person that would most likely buy the property (i.e. young couple, retired person, people working at specific employers, people with children in specific schools, investor, etc.). You cannot violate any fair housing laws in your advertising, but you can definitely try to market your property to the type of person that you think would most likely want to live in your property. Besides the traditional MLS, Realtor.com, a For Sale sign, and an ad in the newspaper, there are other targeted ideas. Newsletters in the community, various internet sites like Craigslist, a virtual tour, postcards to the neighborhood, directional signs, real estate auctions on Ebay, and advertising at specific employers or churches are some ideas to ponder.

Hopefully these suggestions will give you some ideas to help get your property sold quickly.

I will be happy to help anyone evaluate their property and come up with a marketing plan. 

Copyright © 2007. Sand Dollar Realty Group, Inc. All rights reserved.

Rob Arnold, ABR, CPL, GRI, Full service and investor friendly Realtor, Managing real estate broker, Licensed mortgage broker, Notary Public

407-389-7318 http://www.sdrhouses.com/ http://www.webuyhousesflorida.com/