Mistakes to Avoid when Selling your Home in a Down Market
Even if the real estate market has turned south that does not mean you
should simply write off the prospect of selling your home. While it may
be somewhat more difficult to do it is still quite possible to sell your
home even in a cooled off real estate market provided you know what to
do and more importantly what not to do. Learning which mistakes to avoid
when trying to sell your home in a down real estate market can make a
large difference in how long your home sits on the market.
Poor Photograph
One of the biggest mistakes sellers can make when trying to market their
home during a cooled off market is to use photographs that show the home
in a poor light. There is certainly a lot of truth in the old saying
that pictures speak a thousand words. The picture that is used of your
home in marketing materials is often the first prospective home buyers
will see of your home. If your miss your chance here to make a good
impression you may never get it back. The main idea of the picture is to
whet the appetite of the buyer and encourage them to want to see more of
the home. Toward that end make sure that pictures used of your home are
clear and crisp. Be sure there is sufficient light and that the pictures
display your home looking neat and tidy. Avoid posting any pictures that
show your home in a cluttered state. Finally, make sure to use multiple
photos.
Did Not Emphasize the Uniqueness of the House
In a buyer's market, prospective buyers have a lot of inventory to
choose from. You may well find yourself competing with a lot of other
sellers for a small number of buyers. This is why it is important to use
every tool in your arsenal to attract interest in your home. Providing
more than just the basic information about your home is a great way to
do that. Let the buyer know why your home is better than any others
currently on the market. Is there something about your home that is
unique? Be sure to mention it in the marketing for the home. Think back
to when you first bought the home. What was it about it that ‘sold' you
on it? That very well could be what might sell someone else on it as
well!
Misjudging the Value of Agent Previews
Remember that real estate agent are usually more likely to sell a house
they have actually seen and know something about it. Therefore, it's
important to make a concentrated effort to be sure all the agents in
your area have actually previewed your home. Consider enticing them by
holding an open house with a nice lunch spread and even door prizes.
This will certainly generate some interest!
Limiting Access for Showings
Make sure you are flexible when it comes to showing your home. With a
large inventory available for viewing if you put too many restrictions
on when your home can be shown you may well find that it's never shown
at all. Be willing to allow a lockbox to be placed on the property so
that it can be easily shown whether you are at home or not and avoid
asking for 24-hours notice before the home can be shown. It's also a bad
idea to request that the home be shown by appointment only-this can
cause you to miss a number of prospective buyers.
Present Not As Much of Commission than Other Listings
While sellers obviously want to negotiate the best deal possible and net
the most profit possible from the sell of their home, when the real
estate market is down might not be the best time to try and negotiate
too much on the sales commission. The simple fact remains that agents
have a tendency to market homes which offer higher commissions more than
homes which offer lower commissions.
Not Willing to Negotiate
It is also important to be aware that you may not be in as strong of a
position to maintain the asking price as you would be in a seller's
market. When the market is down and the inventory of homes on the market
is high buyers traditionally expect to be able to negotiate a lower
sales price. Make sure you let your agent know that you are willing to
negotiate.
Rule out Buyer Incentives
Many sellers are not offering incentives to entice buyers to consider
your home over others. You might want to offer incentives such as home
protection plan, credit towards the buyer's closing costs or an offer to
pay the buyer's home owner's association fees for a year. Finally,
consider having your own home inspection performed and make the results
available to prospective home buyers. This is traditionally only done
when an offer has been made on a home and the buyer usually pays for it;
however, making this small investment can go a long way toward providing
a competitive edge for your home over others.
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