Our local market could be easily be called a Buyers Market. We have a lot of homes in the market at all price ranges. If you are looking to purchase a home now is a great time to start looking. To start you need to talk with a mortgage specialist to find what your buying power.
Now is it a bad time to be a seller. Not necessarily if you properly prepare your home and price it right. It’s a good time to be in the “How to sell” in a buyer's market.
You've got to be proactive on price, marketing and more. Here are few steps to take before you plant the "for sale" sign.
If you're selling your home this year, be prepared for a marathon, not a sprint.
In most places, those heady days of putting a property on the market, receiving multiple bids, getting more than you expected, and accepting an offer in just days or weeks are over.
Now, for most houses in most parts of the country, it's a buyer's market. That means that more houses are for sale, there are longer stretches on the market, and prices have slowed, plateaued or, in some places, decreased.
Homes are staying on the market for about four months, according to the most recent averages from the National Association of Realtors.
If you plan to plant your "for sale" sign, here are 10 things you can do beforehand:
1. Recognize every market is different – What’s your home worth?
2. Get your home inspected.
3. Shape up before marketing.
- A buyer's market means you've got more competition.
- "You want to put your best foot forward,
- " New paint. Paint the whole house, if it needs it, or just the trim, shutters and door to freshen up.
- A clean entryway. Sweep or pressure-wash the front walk and porch.
- Polish the outdoor metalwork, clean the windows and glass, and replace any burned-out bulbs in outdoor lighting. And, if you can, add planters with flowers.
- Lush landscaping. Think new mulch, sharp edging, a healthy lawn and beds of flowers.
4. Devise a marketing plan.
5. Check into company relocation assistance. Are you moving to take a new job? If so, the company might offer resources to make selling your house easier,
6. Interview real-estate agents. If you're interested in using an agent, interview several early on about listing your home. "Ask them for their advice,"That's a good way to select an agent." What would they highlight about your home? What would they change before it goes on the market? Discuss, Talk about it; What makes a home stand out?
7. Set a price. The rules are different in soft markets don't overprice your house 20 percent to leave wiggle room for negotiating. That kind of strategy might never be a good idea, but it can really backfire. It's not a matter of being willing to negotiate. If your price is too high, potential buyers may not even look at it. And they may very well see a negative message in such a high price. Those who overprice their homes in this market are wasting everyones time.
Two more points to consider:
Modern technology. Agents and buyers most likely are using computers to search for properties. If you want to sell yours for about $400,000, consider listing it at $399,999 rather than $400,500. That way, a computer search of anything between $350,000 and $400,000 will include your listing.
Commissions aren't add-ons. Don't add the real-estate commission to the value of the home to come up with your asking price, says. If you use an agent, the fee comes out of your share of the profits. Otherwise, you're going to get penalized for overpricing your house. Instead: Try negotiating your commission with the agent. When the recent seller's market was in full swing, it was easy to get agents to list your property for as low as 4 percent (split with a co-broker). They knew the property would sell in days or weeks and their marketing costs would be low. Now it's reversed. Agents commonly are looking at four to six months to sell a property, which increases their marketing expenses. This makes them hesitant to offer a discount.
Beware of hidden financing costs. Not all financing is the same from a seller's point of view. With some types of financing, such as FHA and VA home loans, the seller pays the points on the loan. Understand the different types and what will be required of you as a seller, because that could affect how much you net in a sale.
8. Understand your price. While you don't want to undervalue your house, many sellers today won't make as much as neighbors who sold last year. If you have your heart set on a certain amount and find out that houses aren't selling for that, you may have to change your mind and sit on the house.
9. Get rid of the junk. This year, it's more important because buyers are going to be fussier. Buyers are going to come in with an attitude. Throw things out, ship them early or rent a storage locker. But clear out that clutter. Buyers look for space and light. To show it off, you need to be able to tour a group comfortably through the house, as well as actually walk into those "walk-in" closets.
10. Stay on top of the market. You must be aware of market changes. That's one reason of the many reasons to an agent. Realtors stay on top of what is happening with mortgages and finance rates, keep looking at comps and "see trends before they happen. The real-estate market is still in a time of correction. You have to be so careful with both buying and selling.
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