How to Sell Your Home in a Buyer's Market
You’ve likely heard that real estate markets across the US have universally experienced some degree of slow down and many are already considered to be buyers markets. But what exactly is a
buyer’s market?
A buyer’s market occurs when there are more home sellers than there are home buyers. This leads to downward pressure on prices, as well as a longer average time to sell a home. As inventories of homes for sale grow, so does competition among sellers, resulting in lower prices and incentive offers to buyers. In short, it’s a good time to be a buyer, but a tough time to be a seller.
Whether you are getting ready to sell or you’re already fully engaged in the process, it is an unsettling time. With the run up in the real estate prices over the past 5 years it’s understandable to be disappointed or even a little scared by the thought that your home is worth less now than it was six months ago. But what can you do to ensure you’re not the last one standing now that the music has stopped?
Here are ten tips to help sell your home in a buyers market.
1. Set realistic expectations
- Understand that if you have to sell in a buyer’s market, you aren’t likely to get top dollar
In order to get the best price, your going to have to have your house in the best possible shape
2. Comparison shop in your town and neighborhood
3. Hire a home inspector
- Offer a copy of your home inspection report to prospective buyers, if applicable
- Have the Home Inspector come back and amend the report if problems are later fixed
4. Fix any problems
- Fixer-Uppers don’t sell as quickly in buyer markets
5. Make home improvements and upgrades as necessary
- Consult with your real estate agent as to what is necessary and what is wasted effort
6. Make sure your home is clean and clear of clutter
- Consider hiring a cleaning service
- Consider hiring a decorator or a home staging expert
- Consult your real estate agent for staging advice
7. Price your home realistically
- Price too high and buyers are less likely to make offers
8. Go the extra mile for your buyers
- In addition to the listing sheet, put together a 1-2 page sheet of highlights of <first> your home (features, recent improvements), and <secondly> the neighborhood and town (schools, shopping, parks/community activities, transportation, crime. make copies an have them available for prospective buyers to take after viewing your home.
9. Don’t negotiate with the expectation of multiple buyers or counter offers
- Only turn down or counter a buyer’s offer if you really are not willing to accept it
10. Consider offering incentives
- You are competing with builders who cannot afford to remove their home from the market
- Consider offering home warranties. Find out if a home warranty is right for you.
- Financial incentives are also popular. Consider such as paying closing costs, or points on a mortgage, paying a years worth of condo or home association fees, or paying the full year’s property taxes.