Market Tips for Selling
There are always three factors involves in selling a home: price, condition, and location. Only the first two are under your control, however, so of those two, which is the more significant? Price. Always remember that price will correct poor condition, but condition will never overcome a bad price. Consult with a local, expert real estate agent to ensure your house is competitively priced.
Selling a house is a race against time. In today’s market, the best price you’ll get is the price you get right now. The longer you wait, the lower that price will go, and every month the price on your home decreases, your costs remain the same. For a home that cost $200,000 at the time of purchase, with 20% down and an interest rate of 6.5%, selling one month sooner results in saving $1,101.31 just on the mortgage, not including the taxes and insurance the owner would be paying during that time. Research shows that sellers who listed their home at the price originally recommended by their agent sold their home 38 days faster.
Another tactic for making your house more attractive to potential buyers is to sweeten the pot, so to speak. In a down market especially, buyers are looking for a good deal, so if you can make them feel they’re getting one, your house looks that much better than the competition. Sellers that offer a few thousand dollars credit towards the closing costs, or offer to pay the closing costs completely sometimes receive more attention from house hunters in the area. You can also offer a transferable home warranty, which will cover appliances, such as refrigerators and air conditioners, that may fail and can cost $300 to $400 for a one-year policy. Other home gadgets and appliances may be covered as well, depending on the specific policy. Potential buyers will certainly feel more at ease knowing that they will be covered against any such problems, which again, makes your property all the more appealing. Lastly, it’s worth mentioning that some buyers can be motivated by the option to close the deal in a short amount of time. If it’s possible for you to close on the property within 30 to 60 days, you may rise above the competition and therefore get the contract.
The housing market is a moving target, so stay focused on where the market is going, not where it’s been. The price your neighbor got for his house six months ago has no bearing in a market where your house is competing right now with houses from all over town. A local real estate agent has the kind of wide-range, long-term information that will help you determine the ideal price for your home.
At the end of the day, the little things can help drive the deal home. Do everything you can to get the house in the best shape possible and be willing to make a few, small concessions in closing. Follow these guidelines and find a professional real estate agent to help you set the price, and you dramatically increase your chances at selling your property.
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