Thinking of selling your home in a down market? You’ve thoroughly researched the real estate market and you know home sale transactions are moving slowly. Nevertheless, you’ve got no choice. You have to sell. You have to move. The sooner the better.
What is a down market?
A down market in real estate refers to when housing values are down.
The excess of housing supply over the demand for housing causes a decrease in how much buyers will pay for a house.
Tips for Selling Your Home in a Down Market
While sellers may drop their price to sell a house faster, below are a few more tips and tricks for selling a house fast when the market is in a buyer’s favor.
Fortunately, homes move in all kinds of markets and there are techniques you can use to move yours.
- Come up with a unique selling point
If your home is the same as every other home on your block, it’s going to be difficult to hook buyers. However, some great landscaping, a trendy outdoor kitchen, a pool or some interior decorating might give you an edge. Make sure to feature your unique selling points prominently in all of your listings and marketing materials.
This tip is only helpful if you already have all these features installed in your home … you don’t want to build them just to sell it.
- Offer a bargain without lowering the selling price
Investopedia offers some great ideas for sales terms which buyers might not be able to resist.
Sellers that offer the buyer a couple of thousand dollars credit toward closing costs, or offer to pay closing costs entirely, will receive more attention from house hunters looking at similar homes. In a down market, buyers are looking for a deal, so do your best to make them feel they’re getting one.
- Offer a transferable home warranty
This can cost $300 to $400 for a one-year policy and will cover a failure by appliances such as air conditioners, water heaters, dish washers and even refrigerators. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home.
Of course, to do this you’ll need to have the financial ability to absorb the cost of all these concessions.
- Offer a virtual tour
Sometimes flat, 2D photographs just aren’t enough to get the job done. Consider offering a virtual tour once the home has been staged. This will allow potential buyers to imagine themselves walking those halls before they call to see the house in person.
If you’re lucky, they’ll have sold themselves before they even arrive at your front door.
- Adjust your expectations
In a down market, most people reduce the price of their home. This is especially true when they are surrounded by foreclosures and other homes which are selling at a deep discount.
In fact, the harsh reality is you can do everything right by having a house in peak condition and offering a host of amenities and negotiation terms, only to find yourself lowering the price anyway. One homeowner even called a shaman to cleanse the house of all negative vibes, only to eventually lower her price by $167,000.
You might want to save yourself both the heartache and the headache.
- Avoid looking desperate
Desperation tends to drive buyers away because it tells them there’s something deeply wrong with your home. If you lower the price, don’t call attention to it. Don’t plaster the words “Seller Motivated” all over your real estate ads.
When selling a house in a down market, the more you beg people to buy your home the less attractive it will be.
- Call a real estate investor when the market is down
Many people hesitate to call a real estate investor because they think they won’t get as much money for the home.
However, in a down market you might end up losing far less money by accepting the small hit and selling quickly especially to a reputable company like US Direct Home Buyers.
You won’t be dealing with near the stress that listing a home brings.
You won’t have to pay for all of the home’s upkeep.
You’ll get the cash infusion you need to take the next step in your life.
You won’t have the uncertainties that a down market brings.
You get a cash offer in a short amount of time.
You will know the exact amount the house will sell for upfront.
You can close quickly and move on with your life.
You won’t even have to call a shaman.