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FIVE TIIPS FOR SELLING IN A BUYER'S MARKET
1. Play the Cards You're Dealt
A successful poker night begins before you reach the table, when you resolve not to chase after hands that you have no realistic chance of getting. Similarly, a successful home sale begins before the house is listed, when you decide not to expect to make a killing.
All you can do in a falling market, if you have to sell, is have the best possible product out there at the price it should be. Not what you wish you could get, not what the neighbor got two years ago, but at the price you should get now. That's the reality. It takes discipline to face that reality, as you may not get as much for your home as your neighbor who sold six months ago.
2. Scope out other houses for sale.
Break through your ego and stubbornness by looking at the good deals that your neighbors are offering. It's important to shop the competition. Put on your shopping shoes and look at everything from a buyer's viewpoint.
Visit newly built houses and find out which amenities and incentives builders are offering. Eavesdrop on other visitors to open houses to find out if there's something in particular they're looking for -- something you should do to make your house more presentable.
3. Make it a turnkey, not a turkey.
The word "turnkey" is used in commercial real estate. It means a property is ready for immediate use. Your house has to be that way when buyers have a cornucopia of houses to choose from. You have to take away all the opportunities for a buyer to say 'no'.
You may want to hire a home inspector prior to putting your home on the market...Know the problems and fix them, prior to encountering a problem after an offer has been accepted.
The appearance of the home is critical, from the initial impression of the exterior, all the way through the home. If you've been putting of maintenance items requiring attention, to them now. A fresh coat of paint, cleaning of the carpets, bright lighting, new flowers or greenery...these things make a huge difference in the initial impression of the home.
4. Offer Incentives
After you have put your head on straight, spied on the competition and fixed up your house, it's time to figure out what goodies you will dangle before buyers and their agents.
Incentives inude paying discount points to lower the mortgage rate, paying closing costs or providing flexibility about the move-in date.
Consider offering a premium to the buyer's agent. Add a half-point or a point to the commission, or give the agent a cruise or a big-screen TV. It may not cause the deal to happen, but it can just attract a little more attention and make your deal stand out.
5. Price realistically.
This is perhaps the most important factor to be successful in a buyer's market. Don't get greedy --- you have to be realistic in pricing your home. It takes research, often conducted by a real estate agent, to come up with a realistic asking price, and discipline to abide by it.
In a seller's market, sellers typically ask for 10 percent to 20 percent more than they expect to get. You don't have that luxury in a buyer's market. Asking for just 3 percent to 5 percent more than you realistically expect to get is a far better strategy in a buyer's market. Setting an aggressive asking price attracts more prospective buyers to your door, discourages lowball offers and saves negotiating time.
In a market where prices are falling, asking prices must fall, too, which is a whole new concept for sellers.
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