Strategies for Selling in a Buyer’s Market

Strategies for Selling in a Buyer's Market

The market has changed and, if you are a seller, you must change too. I believe there are plenty of ready and able buyers in today's market, they're just not willing to pay the asking price of sellers. Also, there are plenty of ready and able sellers, witness the record levels of inventory, but, they're just not willing to accept less than their neighbors received six months ago.

So forget about what your neighbor's home sold for six month ago. It doesn't matter anymore. The only thing that matters right now is your competition: what's for sale that's comparable with your home.

Right now, buyers are in charge, and they are being very picky. The question you, as a seller, have to ask is, what is it going to take to sell my home? So, what's a seller to do?

First, you have to become willing to sell. What happened six months ago is history. Today's market is what you need to concern yourself with.A willing seller first has to price the property right. You can price your home high and all you will end up doing is selling your competitors homes for them. Price it at or a little below your competition. It's a good idea to go visit your competition.

Second, make sure your home shows better than your competition. That means spiff it up, clean it up, fix all the little nagging things you've been willing to live with. Walk through the house as if you were a buyer.

Third, think about staging your home. Hire someone who specializes in putting on a show. The only homes that are selling right now with multiple offers are those that are in tip-top condition and priced to invite offers.

Fourth, remember, the two components of a home sale are price AND terms. You can keep the sales price up by working with the terms. Some terms to think about are:

Seller financing. If rising financing costs get in the way of a sale, consider taking back a note secured by the house. If the buyer lacks the 10 to 15 percent of the price you're asking to qualify for a conventional mortgage, consider taking back a second mortgage or deed of trust that will fill the gap. Alternatively, you could take back a first mortgage at a concessionary rate. An entire industry exists in the financial markets that will purchase your properly drafted note for cash. A competent local real estate attorney can help.

Closing costs and other concessions. Some sellers can set their house apart from the pack by offering to pay portions of what would normally be their buyer's settlement fees. Home builders in tough markets may pay all closing costs, plus throw in some upgrades, to move the property.

Home warranty. Offer a home warranty. This will ease the buyer's mind about the high cost of repairing or replacing unforeseen breakdowns of a home's mechanical systems and appliances.The bottom line: Be resourceful. Bring to the table whatever is necessary to get the deal done!