‘It’s safe to sell your home again’, is the title of an article published in CNN’s Money Magazine April 19, 2012. It opens with an example of some wary Colorado sellers who were taken off guard by the level of interest in their home. They had to work at it, and stick to their guns, but they ended up getting near list-price in the end.
“Turns out that while analysts debate when the market will hit bottom, for a surprising number of cities the turnaround has already begun. In December, prices rose in 109 of the 384 metro areas tracked by the data firm CoreLogic. Scrub out foreclosures, and that figure climbs to 169,” writes Lisa Gibbs.
This doesn’t necessarily mean that the market will hit the level that it was at during the ‘boom’, and the hardest-hit areas will take longer to bounce back, but the indicators are favorable that things are moving in a positive direction.
The article goes on to give potential sellers some advice about how to best move forward. “…the rebound is likely to creep rather than surge ahead. Yet if you know how to price and market your home properly — you can finally list your home with confidence that it can sell reasonably quickly and close to your asking price.”
The first suggestion is to look at your own community and local economy. Is the unemployment rate dropping? Are there signs of an improving financial climate? Are there lots of new homes being built, potentially contributing to a high inventory? Answering these questions can help you determine if the time is right, in your area, to finally try to sell.
The article next advises that you “Understand the buyer’s psychology.” Because of everything that has happened with the real estate marker over the past few years, buyers tend to be very cautious, even tentative. They will often take longer to make a decision and will often try to get a deal. Additionally, banks are cautious about lending, and it takes longer to get a mortgage loan approved than it used to. It is good to know your audience.
That doesn’t mean that sellers have to accept low-ball offers, as the articles points out, “You can hold firm on price if you’re patient. The days of having to deal with low-ball offers are coming to an end.” Lisa Gibbs uses an example of a home listed recently in a Denver suburb for $365,000. Two other homes in the neighborhood had sold for $337,000and $341,700 within the past few months. The new listing initially attracted offers of around $330,000. The seller was patient, and rather than taking one of these low offers, she lowered the price to $359,000. After a holiday lull, activity exploded. “I had barely put up the Christmas decorations, and I couldn’t get into my house,” she recalls. The home ended up selling for $354,000.
Other things to consider are that higher-priced homes take longer to sell, in any market and the list price has to be right from the start. “Set a realistic price from the get-go so your house doesn’t look like a throwback to lousy price-slashing times. To do that, think like an appraiser. Analyze comparable sales for price-per-square-foot and see how long competing homes have been on the market.” It may also be helpful to scout out other homes listed in your area, so you know what potential buyers are seeing and how your house compares. The article also suggests, “It f you think you erred in pricing, act quickly and decisively. Let your home’s value dictate the price”
If your home is old or in need of work, the article says, “Take care of structural and cosmetic necessities — but not much more. In lean times, forking over $50,000 on a new kitchen may have seemed like a necessary move to stand out. That’s probably the wrong thing to do now, says George, the appraiser. Instead, stick with basics like paint and flooring. And fix things that will come up in inspection.”
Another good piece of advice is to “respond quickly to feedback.” If you hear the same concerns or complaints from potential buyers over and over, it is probably worth paying attention to. Additionally, working with a licensed Realtor can make the whole process more efficient, fast and relatively low-stress. Real Estate Agents have knowledge of the ever-changing market and a good agent will be able to give you the best advice to get your home sold for the highest possible price.
