The Price Is Right; How To Sell Your Home In A Buyers Market
November 23rd, 2008 Categories: Buyer's Corner, First Time Buyers, Focus on Boulder, Market Conditions, Trends
People are always asking me how my career is going with the “bad” real estate market. I always answer that I’m doing just fine and state that it’s not a bad market in Boulder county – it’s a buyer’s market. I’ve stayed busy showing buyers homes and closing some pretty good deals. As for sellers, we’ve been successful as well. The supply of homes for sale continues to grow throughout Boulder, and it’s been a long time since home sellers have faced these conditions. Homeowners looking to sell are in unchartered waters. So why have we been able to have successful home sales in Boulder Colorado? Because we know how to sell a house in a buyer’s market and it’s equally important to educate homeowners on how to sell in a buyer’s market.
Homeowners who want to sell have a choice: sell in the current market, or wait until later, when market conditions improve. But the latter assumes they have a choice. If you are determined to sell, you need to forget about the real estate market a few years ago and face the new reality – it’ a buyer’s market, and you will be competing with a growing supply of motivated sellers to get buyers interested in your house.
QUESTION: Why have we been so successful in selling homes quickly?
ANSWER: Because we educate our sellers and they do the following:
PRICE IT RIGHT: Real estate pros say the key to selling a house is to price it right. That means setting the price at what you can get – not what you think it’s worth. The fact of a sellers market is that it doesn’t matter or realtor think your house is worth – the only thing that matters is what a buyer is willing to pay. You don’t want to over-price your house, because buyers ignore it and your listing will lose its’ freshness and appeal, not to mention the uncompensated effort of keeping the home spotless during the showings. Also, the “original listing price” and “current asking price” are on your home’s multiple listing service (MLS); if you do not show some decline from the original offering price, some buyers will see it as a sign you have unreasonable expectations of what you can get for your home. Sellers fear pricing too low and leaving money on the table. However, there is little chance of this happening. THIS PART IS IMPORTANT: If a home is priced low below the competition, you should receive multiple offers that will drive up the price to fair market value!!!!
Choosing a Realtor: DON’T HIRE THE FIRST AGENT who suggests a high asking price. Instead, select a listing agent who can back up his or her proposal with the most facts, market research, and experience. When setting the listing price for you house, use round numbers in increments of $5,000. So, listing at a price of $250,000 will turn up in more searches than listing at $249,000. Also, your Realtor should have an Internet strategy because most buyers in Boulder Colorado search the Internet and buy a home within 12 miles of their existing one – use the Internet tools available in your area to see what the supply of homes for sale in your area looks like online.
Don’t tell me you haven’t heard this one before; CURB APPEAL. 
You have to make a great first impression! If you watch home shows as much as I do, you know the the Realtors ALWAYS suggest this right away. It works. See for yourself on channels like HGTV, TLC, and the Green channel. Do what it takes to get your house in selling shape. What do you want buyers to think about your home when they first pull up? You don’t want it to be, “Oh, the yard needs a lot of work.” I suggest starting with a power washing, and clean outside windows. Mow the lawn, clear the weeds and plant season appropriate vegetation. Repair any outside light fixtures and sweep the porch, adding a bright welcome mat. Painting may be a criteria for your home and sometimes just by painting the front door, hallways, and nail holes, you can really brighten the place up.
I recommend a PRE SALE INSPECTION. Sellers are strongly advised to consider getting a pre-sale inspection, especially if their home is older or in need of repairs. They can either use a clean home inspection report as a selling advantage or take care of the repairs listed on the inspection report. Of course, it’s advised that you make the repairs before listing the home if possible, especially if they involve things that can be messy and unsightly, such as replacing the roof or removing an old fuel tank.
DON’T BE SO STUBBORN: In this market it’s all about being flexible. Buyers will expect to pay less than the asking price. They will be armed with the original list prices and final sales prices of comparable homes and will know the price reductions other sellers are accepting. Many buyers may make low-ball offers to see what your reaction is. Remember, emotion is the enemy of flexibility, so keep them out of it. Your objective is to sell your house.
ACCESSIBILITY: Are you a motivated seller or the type of seller who requires 24 hour notice and one hour showing privileges? What I am trying to say is don’t make it a hassle to come see your home. Keep it presentable and be flexible when people and agents are making appointments. Yes, you do have to leave the house for two hours and sometimes you many not know until the last minute. That’s what it takes to get a home sold. Last week, my buyers showed a great amount of interest in a home that the seller requested no showings for two weeks! That seller lost my buyers right then and there, since then we have made an offer on another property.
In conclusion, if you have to sell you home now, find a real estate agent who can educate you on selling in a buyers market There are many success stories happening in this market for buyers and sellers If you price it right, add curb appeal, remain flexible, and make it accessible, YOU WILL SELL YOUR HOME. Then, go out and buy a new home at a great price and benefit from this buyer’s market yourself!
