Tips to Help Sell Your Home in a Slow Market

Selling a home in a down market takes more planning and preparation but with a little know-how it’s still possible to get a great response with these quick tips:

Price Matters

Without a doubt, the most important consideration is to price the house right – especially if you want a quick sale. When the market was red-hot homes sold fast so it is easy to forget that historically homes are on the market an average of six months before selling. Be realistic and work with your agent to price right.

Staging & Updating

Make sure your home looks its best by updating paint, making small repairs and taking the time to properly stage your home for online and in-person viewing.

Pre-Qualify

Window-shopping is a popular past-time even when it comes to real estate. One of the benefits of working with an agent is the ability to preserve your valuable time and only entertain serious offers from qualified potential buyers.

Reach Out

Reaching the best potential buyers isn’t always easy especially in a down market. It takes experience, objectivity and great marketing skills to know how to position your home to reach the right buyer. Does your home have a great view? It might be perfect as a vacation get-away. Is it located near a major International airport or business center? International buyers could be searching for a second home due to the favorable exchange rate.

Offer Incentives

Get noticed by offering buyer incentives. Buyer incentives are a welcome addition to any deal and include things like gift cards, LCD televisions or new appliances. Find out what tops the local “wish list” when it comes to amenities then calculate the cost of offering an incentive. They are an easy and effective way to capture the attention of potential buyers in a crowded market.

December 2008

How to Tell if Your Dream Homes Price is Right

When it comes to evaluating the value of a property there are more ways than meet the eye; like beauty, the value of a property is often in the eye of the beholder. Savvy buyers and investors use several of the following methods to determine if the price is right:

Comps: Comparing a property to others is the most commonly method of establishing price and value. Age, size, location and amenities are compared to other properties in the area. Unfortunately, this method doesn’t work well for unique homes or those lacking nearby comparisons.

Income Potential: Another popular method is to determine the amount of income the property would generate if rented or used in another endeavor like a small business or hobby.

Return on Investment: Calculating the ROI is a good measure especially for those buying income producing property or “fixers” in need of extensive renovation or repair. The ratio between money invested into the property versus the anticipated return (often using leveraged funds) is particularly useful for those who purchase real estate as an investment. For example, if your cash outlay was $10,000 and you made $2,000 your ROI would be a whopping 20%.

Replacement Cost:  Inflation, taxes, permits and other costs tend to rise over time making it more costly to build a home. For example, 25 years ago many homes could be built for less than $40 per square foot while today it is difficult to find a home for less than $100 per square foot.