You’ll need a plan to sell your home in the current market conditions. I have seen it all in the last 20 years and am happy to share my knowledge and experience.
Let’s start with a discussion of what you can expect. The competition is many available houses in Southern California and the rest of the country. Most real estate agents would not view the listing of another overpriced, unmotivated home as a positive development in a buyer’s market. Another thing you shouldn’t do is look for a “discount” Realtor right now. Listings are currently “a dime a dozen,” but you’ll need the best you can get.
We’ll begin with the reason why. Don’t market your house if you aren’t prepared to sell it quickly or at a fair price, as this will be frustrating for your real estate agent and neighbors. Let’s figure out a strategy if you’re serious and prepared to get to work. Even if you think these suggestions are silly, give them some thought anyway; you might benefit from rethinking your priorities.
Let’s focus on you first. The goal is to locate a purchaser. That means your preferences in furniture and decor are irrelevant. The goal is to make your house more desirable than others in the area listed for sale at a similar price. The ideal scenario has you living somewhere else while your home is empty or professionally presented. What it is that you hope to achieve is another consideration. Why are you doing this? Is it an easy and fast transaction? Getting as much as possible out of the deal? Why not just take the money and run? Staying out of foreclosure? Your options will be more limited if you impulsively purchase out of desperation.
Second, make sure your home is in perfect shape. Painting the interior and exterior with a professional-grade paint job using modern neutral colors will help you get top cash. Replace your flooring ASAP. Depending on your needs and budget, you may consider installing granite counters, purchasing brand-new appliances, and renovating your bathrooms. Your price expectations will naturally decrease if you cannot upgrade and update. To get top dollar, you’ll need to make these changes. If the speed of sale is more important than maximum profit, then the price should be adjusted accordingly.
Don’t dismiss this idea just yet. To get an accurate assessment of your home’s value, it’s best to employ an impartial and certified professional appraiser. Before you waste money on unnecessary renovations, an appraiser can tell you how much those additions would increase the value of your home. Before you invest any money, you may find out what an addition, bathroom, or kitchen remodel would be worth. Hiring an expert appraiser is a wise investment. If your estimate is too high, you will have wasted time and effort; if it is too low, you will have lost the sale and that money permanently.
Now comes the crucial section. Here is what the vast majority of present-day vendors are getting wrong. Standard practice dictates that if your home is worth $600,000, you should ask for $625,000. It seems reasonable, but that’s when the problems start. I had a neighbor do this, and after weeks and months with no offers, he eventually dropped the price to $399,000 after a year and a half on the market. But a wise neighbor of mine sold his for $610,000 to the first buyer he found and then gave that buyer $15,000 cash back as a “landscaping allowance,” so the buyer paid the total asking price and was overjoyed because he could use the money to start a pool, landscape the yard, or even take a vacation to Hawaii.
Here’s a different perspective to consider. You may either follow the crowd and set your pricing at the current low point, or you can set your price lower than the market will bear and sell at today’s prices without lowering your cost. It’s like surfing: you ride the wave’s crest and enjoy the ride, or you get left behind and have to wait for the next one. It’s not a safe bet, but if you price it much below market, you might get more than one offer and even an overbid. Here’s a little secret: right now, direct incentives to the buyer—your customer—are the most effective strategy. Give the buyer $10,000 in cash, a home renovation gift card, a landscaping allowance, luxury items, etc., instead of lowering the price by $10,000. You’ll stimulate the purchasing process.
Finally, maintain an optimistic outlook. A win-win agreement is the goal. You want the house to sell quickly and without any hassle. Without wasting time or money, set the right price immediately and make the property as marketable as possible. If it’s a buyers’ market and prices are falling, you should sell your home directly and not wait for the perfect offer. Nonetheless, selling any property with “warts” in this market is challenging. To maximize your chances of making a sale, you should fix any problems that could turn off potential buyers before you put your home on the market and set the correct asking price from the get-go.
Use your appraiser’s knowledge and expertise from the get-go, not just when convenient, to confidently enter negotiations.
To contact me, please visit activerain.com/cdiamond.
Appraiser/Author
CREA’s Clifford Diamond
For the past 20 years, I’ve worked as an appraiser in Southern California. Kindly check out my.
Read also: Reits Program – 9 The reason why Pre-Foreclosures Are The Best Way To Sow