3 Tips to Sell a Home Quickly in a Declining Market
How to Sell a Home Quickly In a Declining Market
There are three universal factors to consider when you are trying to sell a home quickly in a declining market, and these factors hold true whether your home is an impressive beachfront property, a suburban tract-built home, or an older starter home.
It also makes no difference how upgraded your home is, or whether it is a fixer-upper, these 3 factors will decide whether you sell a home quickly in a declining market for the highest possible price, or not.
1. Set the Correct Asking Price
Although many factors should be considered when pricing your home for sale, keep in mind that the first few weeks of marketing are the most critical. Market research shows that the best chance of selling your home quickly and for the most money is within the first five weeks. The longer a home stays on the market the less money the seller will make. Over-priced homes typically sell below market value because they become “shopworn”. This leads to fewer showings because buyers and agents are not enthusiastic about the home. Overpricing the home wastes the most important first 5 weeks of your marketing and advertising efforts.
Far too often sellers go with gut feelings or subjective reasons when pricing a home to sell quickly, especially in a declining market, rather than available statistical data. What you paid for your home, the tax assessed value, how much you want or need to get out of it, the cost for custom features that you added, how much you love the home, what your neighbors say, and the estimated value found on Zillow and other websites are things that should NOT be a consideration when establishing an asking price for your home. They are meaningless and in many cases a hindrance in selling your home.
An example of what to avoid when pricing you are trying to sell a home quickly in a declining market:
Your asking price should be based on what other homes like yours sold for rather than current listings. In a declining market where home prices are falling you will need to price your home slightly below its current value. Otherwise, a few weeks later your home is overpriced and you will just be chasing the home values lower, losing money along the way.
The seller lists the home at the indicated current value of $350,000
In a declining market, the home loses value every day and in 30 days the value is now $340,000
30 days later when the house didn’t sell, the seller adjusts the price to its current value of $340,000
Every day the market continues to decline and in 30 days the house value is now $330,000
Again, the house did not sell so the seller adjusts the price to its current value of $330,000
Many sellers follow this pattern and watch the value of their home decline until it hits rock bottom. But if you listed the house for $340,000 on day one you most likely would have sold the home quickly and ended up with more money in your pocket. Correctly setting the asking price for your home is the number one factor that will decide whether your home sells quickly in a declining market and for the best possible price.
Pro Tip: Remember that the first offer you receive is most often the best!
2. Condition of the Property
With the hyper-competitiveness of today’s market, homes that are clean, uncluttered, show well, have been well maintained, and have a neutral décor sell the fastest. To sell your home quickly and for the highest possible price, you must make a favorable first impression on a potential buyer so that your home will be remembered. You want them to be excited about seeing your home!
The easiest way to make a great impression, which is also the least costly, is to ensure the property is squeaky clean, and uncluttered. Light, bright, open, and spacious sells. Scrub the house from floor to ceiling including those windows. Pack up all of the clutter and anything you can do without for the next 6 to 8 weeks. Put the extra stuff in the garage or move the items to a temporary storage space. A home does not need to be upgraded or in perfect condition to sell quickly and for a great price, but it does need to be clean and uncluttered.
The second least expensive improvement you can make that gives the greatest return is painting. Repair and repaint any damaged or scuffed-up walls and get rid of those bright non-neutral colors. If possible, you should also repair anything that is in disrepair that would indicate to a potential buyer that the home was not properly maintained or that is a potential hazard.
Finally, trim the grass, bushes, and trees. Mulch the planting beds, and plant some flowers. You want your house to outshine your competitors and for buyers to be eager to see the inside of your home.
Pro Tip: You only get one chance to make a first impression, so make it a great one.
3. Show and Tell
To sell a home quickly in a declining market you must show it and tell a story. The show and tell starts online when most buyers will see your home for the first time. Now that you have the home all shined up you must have professional photos taken that highlight its greatest features. But don’t just post the photos online, almost all real estate websites (including the MLS) allow captions to be included with each photo that enables you (or your agent) to tell the story of what the photos feature. Make sure these are descriptive and sell the feature you are presenting. For example, it is not just a “Breakfast Room” it is a “Sunlit Breakfast Room” and the “Soaking Tub” is a “Rejuvenating Soaking Tub”.
Now that you have the potential buyer itching to see your incredible open and spacious home, you must show the home on the potential buyer’s schedule, not yours. If you turn away a showing, there is a very high probability that you will never hear from that potential buyer again.
Yes, it takes a lot of effort to keep a home show ready but it will be much easier if you plan. So prepare for the showings by having plans on what to do with the pets, or where to take the kids. This is your chance to visit the museum, zoo, or park. So plan a weekend away when most people view homes.
Pro Tip: For inspiration and guidance, go look at a new home builder’s model home. They are professional marketers and know how to show and tell. Mimic what they do!
The Bottom Line
Remember, what type of home you have or where it is located does not matter. If you want to sell your home quickly in a declining market just follow the 3 tips described above. These are time-proven techniques that will sell any home quickly in a declining market. And yes, it does take some effort but the short-term inconvenience and the sacrifices you make now will pay off handsomely later.
Brought to You by the Mac Realty Team
This information is provided by Mac Realty Team, a team of full-service discount real estate agents with Global Realty. For additional information, current market sales data, or for help selling your home we invite you to visit www.MacRealtyTeam.net
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Mac Realty Team | 3 Tips to Sell a Home Quickly in a Declining Market