All markets are not created equal and neither are all homes for sale. This would explain why some homes languish on the market for months and others sell practically overnight. What makes the difference? In this special report, we will look at tips to tip the scale in your favor when you are trying to sell your home quickly.
First and most importantly, you must be serious about selling your home. Many sellers are testing the market with such attitudes as “I will sell only if I can get ______.” This does not mean that you have to let your home go at any price in a fire sale. We believe that a motivated seller will be behind any successful sale. Motivation is shown in realistic pricing, but it is also important that the seller take the other steps outlined in this report.
Second, get the house ready. There are things you can’t change with regard to your house. For example, you can’t change the location. But you can change the way your house looks and it does not mean spending a lot of money.
Staging expert, Shelly Wagner, gives these ideas for low-cost staging (estimated at $100 per room) in an article published by the Detroit News:
⇒Remove scatter rugs and knickknacks from every room.
⇒Get rid of everything on the kitchen counters, including appliances, except for the coffee maker.
⇒Clean out and organize the closets.
⇒Hire a cleaning service if necessary to make the house spotless. Scrub floors, walls, and windows. Pay special attention to the microwave, oven, and refrigerator.
⇒Focus on the feature rooms, the living, dining, and master bedrooms. Additional bedrooms are best left empty or minimally furnished.
⇒Arrange the furniture to show off each room’s best features.
⇒Set the dining-room table with napkins, plates, and flatware.
⇒When showing the house, turn on soft instrumental “buying” music, preferably classical or jazz.
Of course, if the home is in a state of disrepair, the seller must decide whether this property is going to be offered as a below-cost “fixer-upper” or work will need to be accomplished such as new paint, carpeting, a new roof and more.
Third, offer incentives. Lowering the price of your home may sell it more quickly, however offering certain incentives can actually be much less expensive and may be more effective. Major impediments to home purchase include the lack of cash and lack of income to qualify. How can you help?
For example, if your home is listed for $300,000, you can offer…
•Three percent towards the buyer’s closing costs. This will lessen the cash necessary for the purchase. For example, if they are obtaining an FHA mortgage, you may have just cut the cash requirement in half!
•Three percent towards a temporary buy-down of the interest rate. In this case, you would be helping the purchaser pay a lower rate in the early years of the mortgage, without the long-term risks of an adjustable rate mortgage. A “2-1” buy-down off of a thirty-year fixed rate at 4.5% would give the buyer a 2.5% rate in the first year and a 3.5% rate in the second year. The mortgage payment would be reduced by approximately 10% for the first 12 months. Now more buyers can “afford” your home.
It might seem that $9,000 to $18,000 of “concessions” are expensive and certainly they are. However, compare these numbers to the cost of lowering the price by 10.0% ($30,000) to make the house sell faster. A well-placed concession could be less expensive and make the home sell faster.
Lastly, we advise that you list with a real estate agent. Why? Many mistakenly feel they will save money by selling on their own. However, “For Sale By Owner Signs” are invitations for vultures to come in and try to purchase the house at a huge discount. Listing with an agent will put you in front of the greatest pool of potential purchasers. It will also give you access to a professional that will help you effect many of the solutions we have illustrated in this article.
