Real Estate is, and always has been, a market that runs in cycles. Experts may argue the exact number of years it takes for the market to peak and then plunge, but few will dispute the industry’s cyclical nature. And with each cycle, come an upside and a down, each affecting the way homes are bought and sold, and the buyers and sellers themselves.
Most of us LOVE real estate when it is going up, but we HATE it when the market slows down. Agreed? Sellers especially ‘feel the pain’ of a down market. We know how to deal with selling our houses when the market is going up, or appreciating, but most of us have NO IDEA how to sell a house in a slow real estate market. The normal ‘rules of thumb’ for selling a house don’t seem to apply. We buy houses in West Sacramento
Buyers get very picky and hard to deal with, and as a Seller, you have very little ground for negotiation. Buyers often want prices discounted, repairs made, and special terms offered before they’ll consider purchasing your home instead of the house next door. This is what makes folks pull their hair out… trying desperately to figure out “How are we going to sell that darn house in such a slow real estate market?” This is a ‘Question for the Ages’, and a very real frustration that many people are facing right now.
In my experience (I’ve bought and sold over 100 properties in the last few years), I’ve discovered a few powerful ways to minimize your headaches, and hopefully maximize your checkbook. Let me share them with you.
These are 5 of the best ways to sell a house more quickly in a slow real estate market:
1) Be the Lowest Price – Understand the “Buyer Mentality”. Buyers either want the absolute cheapest house in a neighborhood, or they want the nicest house on the block. If you choose to compete in the “Price” game, you are going to need to sell way below value. You are competing with ‘fixer uppers’, bank owned properties, and vacant houses. So don’t get greedy. In order to close quickly, you’ll need to see what’s on the market and price accordingly. Remember, understand the Buyer Mentality and be realistic.
If you decide to be the nicest house on the block, your chances of getting a higher price definitely go up. So roll up your sleeves, because being the best means it’s time to do a little work.
First and foremost, the front yard must be immaculate. If the yard looks bad, nobody is going to look at the inside. There’s no time to grow mature trees and bushes, so work with what you have. A clean lawn and lots of colors (flower beds, potted plants, etc) can look incredible if done right.
Inside, be sure the house is clean, clean…CLEAN! Nobody wants a dirty home.
If you don’t have money for major upgrades, use the funds you do have on plumbing and lighting fixtures, door knobs, curtains/window dressings, and something to make the house smell good.
2) Use a Professional – A good Real Estate Agent can be worth their weight in gold, but a bad one can weigh you down, so choose wisely. To get started, drive your neighborhood and see whose sign is in front of most of the houses for sale. This isn’t a guarantee of good service, but it shows who is most active in your area.
Next, see if you can look on the MLS (Multiple Listing Service) and find out who has sold the most houses in your neighborhood in the past 6 months. This is probably your best bet for selling the house quickly in a slow real estate market, because finding someone with active Buyers in your area is critical.
3) Sell on a ‘Lease to Own’ terms – Creativity may be the best weapon for selling your house during a slow real estate market.
If you offer to sell on ‘Lease to Own’ terms, you are much more in control of the sale because the Buyers likely have limited options. Usually they have a smaller down payment than the bank requires or so-so credit scores. This means that they aren’t as picky and will often pay full market value (or more!). This also allows you to work with a completely different group of Buyers, and gives you virtually NO competition in selling your house. During a slow real estate market, little or no competition is unbeatable!
4) Expose Yourself – Your key to selling quickly is getting as many people as possible to see the house. A few tricks for getting exposure are:
Pay a paper to distribute flyers promoting the sale of your house. This is actually pretty cheap! I get fliers printed and delivered through my local “Pennysaver” and local Newspaper for less than it would cost me to make copies at Kinkos. 10-15,000 fliers are very affordable, and can bring a LOT of Buyers.
Next, use signs. A sign out in front of the house and brightly colored pointer signs get a LOT of traffic. Try to use signs that look different from a typical Realtor or For Sale By Owner Sign. Do something to make yours stand out. Also, if possible, have pointers bringing people from nearby freeway entrances or at least the 4 major cross streets near your home.
Lastly, knock doors in the neighborhood. I’ve sold dozens of homes to friends or relatives of my neighbors- it sounds surprising, but it works!
5) Sell to a Professional Investor – If your house needs repairs that you are unwilling or unable to do, or if you need a speedy sale- call an Investor. You can usually find them in the local paper, yellow pages, or on the internet.
Investors usually need to purchase homes at a discounted price, but selling to an investor is a better option than people realize. Selling to an Investor allows you to save money because now you’re not doing repairs, not paying an agent, not paying for termites, not paying a mortgage for many months and not footing the bill for closing costs.
When all of this is factored in, an investors ‘low ball’ offer will still get you close to 85-90%of your desired net cash-in-pocket, versus selling the ‘traditional’ way. And without all the repairs, open houses, stress, and other troubles of a ‘traditional’ sale.
These are the 5 best ways to help increase your chances of selling a home more quickly in a slow real estate market. One additional point to consider, is to always look at what something will cost in time AND money while weighing the alternatives. Paying a fee or taking a ‘Discounted Price’ now, may save you a lot of time, money, and trouble over the next 3, 6, or 12 months.