Sell Your Home in Down Real Estate Market
It’s no secret that selling a house in a down real estate market can be tough. Interest rates are high, and there are fewer buyers out there looking to purchase. However, it is still possible to sell your house in today’s market – you just need to know how to approach it. Here are our tips on how to sell your home in a down real estate market.
Tips for selling your house in a down real estate market:
1. Make sure your house is in tip-top shape before putting it on the market. This means repairing any damage, fixing any defects, and making sure the overall appearance is clean and inviting.
2. Price your house competitively. In a down market, buyers are looking for deals, so make sure you’re not overpricing your home.
3. Get a professional real estate agent. An experienced agent will know how to market your home to buyers and negotiate the best possible price.
4. Be prepared to negotiate. In a down market, buyers will likely try to low-ball you on price. Be prepared to counter their offers and hold firm on your asking price.
By following these tips, you can selling your house in a down real estate market – it just takes a little extra effort. Let’s dive into each of these tips.
If you want to selling your house in a down market, the first thing you need to do is make sure it’s in tip-top shape. This means repairing any damage, fixing any defects, and making sure the overall appearance is clean and inviting.
Buyers are comparing it other homes on the market. In particular, the kitchen and bathrooms are the most scrutinized areas of a home. The master bedroom bathroom in particular will be looked at closely. If you can update your kitchen (new countertops, new floors, painted cabinets, new appliances), you’ll likely get the most bang for your buck here. The kitchen will be the #1 area where buyers will judge your home. If you are able, updating the master bathroom will be the #2 area that buyers will judge your home. A bit of extra attention to these two rooms will really go a long way to make buyers see that your home is updated.
It’s important that you fix any damage and make all of the necessary repairs before listing your home for sale. This will make your home more appealing to buyers and increase the likelihood of selling your house. Fixing the roof, damaged walls, or a whole host of other items that were tolerable to you, will not be tolerable to perspective buyers.
Roof – while roofs are expensive, a worn down roof can turn buyers off immediately when they pull up to your home. Furthermore, if you have an old roof, a simple home inspection will flag an old roof to a buyer. Once you replace an old roof, your new roof will become a great selling point and differentiator to buyers.
Paint – while you may be OK with worn paint, uneven colors, etc…, buyers won’t be. When they walk through your home, it should be as perfect as humanely possible. In a slowing real estate market, buyers have plenty of choices and can easily walk away from a home for the smallest (and sometimes dumbest of reasons). Make sure that you don’t give buyers unnecessary reasons to walk away. Painting the exterior and interior of your home will freshen your home up – the new paint smell will passively reinforce to buyers that your home is updated.
Landscaping – curb appeal is important when selling a home. If a buyer doesn’t like the look of your home from the street, they may not even bother going inside. Make sure your landscaping is well manicured and that your lawn is green and healthy looking. This will give buyers a good first impression as they approach your home.
Price It Competitively
In a down market, buyers are looking for deals, so make sure you’re not overpricing your home. The best way to find out what your home is worth is to compare it to similar homes that have sold recently in your neighborhood. You can also consult with a real estate agent to get their opinion on what your home is worth. In order to selling your house in a down market, you need to price it competitively. This means taking a look at comparable homes in your area that have recently sold and pricing your home similarly. Pricing competitively doesn’t mean basing your price on what the market was like 6 months ago, it means looking forward and at what the current environment is today. Real estate markets are cyclical – what happened 6 months ago is irrelevant. The quicker you understand this, the quicker you’ll be able to sell your home.
If you overprice your home, it will likely sit on the market for a long time without any buyers expressing interest. In a down market, buyers are looking for deals, so if your home is priced too high, they’ll simply move on to the next deal.
Get a Real Estate Agent
While it may be tempting to try and sell your house on your own (For Sale by Owner – FSBO), in a down market, it’s best to use a real estate agent. They will have experience selling homes in down markets and will likely be able to sell your home faster than you could on your own. Furthermore, selling a home is a lot of work – there’s marketing, showings, open houses, negotiating with buyers, etc… It’s a full-time job and unless you’re prepared to do all of that work yourself, it’s best to use an experienced real estate agent.
When selling your house in a down market, you need to be prepared for buyers to low-ball you. In order to get your house sold, you may have to accept an offer that’s below your asking price. In addition, you may have to be flexible on the terms of the sale. For example, buyers may ask for a home warranty or for you to pay some of their closing costs. If you’re not willing to budge on price or terms, it will be very difficult to sell your house in a down market.
The most important thing when selling your house in a down market is to be realistic. Don’t expect to sell your home for top dollar – in fact, expect to selling below what you would’ve in a normal market. If you’re not prepared to accept that, selling your house in a down market will be a very frustrating experience.
Selling your home in a down real estate market can be challenging, but if you price your home competitively, use a real estate agent, and are flexible on terms, you should be able to sell your home without too much difficulty. There you have it – a few tips on selling your house in a down market. While it may be difficult to sell your home in a down market, it’s not impossible. With the right pricing, marketing, and strategy, you can selling your house quickly and for a fair price.