Twila E. Palmer's Blog
Is now the right time to lower the asking price for your residence? If you've studied the housing market closely, set an aggressive price for your home and are still struggling to generate interest in your residence, the answer to this question may be a resounding "Yes."
Ultimately, there are many reasons why you may want to consider lowering the asking price for your house, including:
1. It has been many weeks or months since the last home showing.
Although your home listing initially may have stirred up plenty of interest, homebuyers have shied away from your residence over the past few weeks or months. Thus, there may be no time like the present to lower your house's asking price to widen your net of prospective homebuyers.
Reducing your house's asking price by even a few thousand dollars may help you generate interest in your residence. And in the days following a price drop, you may notice a significant increase in the number of requests for home showings as well.
2. Your home asking price no longer corresponds to the current real estate market's conditions.
A seller's market can quickly morph into a buyer's market. As such, you should evaluate the real estate sector regularly to ensure your home asking price corresponds to the current housing market's conditions.
Take a look at available houses that are similar to your own – you'll be happy you did. This housing market data can help you determine if your house is priced appropriately based on the competition.
Also, examine the prices of recently sold houses in your city or town. That way, you can see how long these residences were available before they sold, find out whether you're operating in a buyer's or seller's market and plan accordingly.
3. You need to sell your house as soon as possible.
If you face a time crunch to sell your home, you should establish an aggressive price for your residence from the get-go. However, if you fail to generate substantial interest in your residence, you may need to act fast to lower your home asking price to meet your deadline.
For those who want to avoid the possibility of lowering a house's asking price, it often pays to work with a real estate agent. This housing market professional can help you establish a fair, competitive price for your residence, one that should help you stir up significant interest in your home.
In addition, a real estate agent will work with you throughout the home selling process. He or she will set up home showings, host open houses and negotiate with homebuyers on your behalf. Perhaps best of all, a real estate agent is happy to respond to your home selling questions and ensure you can make informed home selling decisions.
Before you lower your home asking price, consult with a real estate agent. By doing so, you can get the expert home selling advice that you need to determine whether to wait out the current housing market or reduce the price of your residence.
When you sell your home, it may be tempting to just try and put your home on the market yourself without any assistance. By hiring a real estate agent, you’ll have a insurance policy of sorts that allows you to know that everything is taken care of throughout the process of selling. The general goal in selling a home is to sell it as fast as possible for the most amount of money that you can. A realtor should do a bit more for you than simply post the home and hope that it sells. Here’s what a great realtor who is looking to be an advocate for their sellers will do for you:
Put The Home On The Market For The Right Price
Selling a home at the right price is the single most important thing that can be done in the entire process. A good seller’s agent will pinpoint the right price for your home. If the home is priced too high, there will be no interest in the property. People will believe that the price can only come down. If the price is set too low, a bidding war can ensue, or buyers may wonder what’s wrong with the property. There’s many different formulas and methods that agents will use to price the property right. The important thing is that the agent does his research.
The Market Needs To Be Marketed
Marketing is one thing that agents should be good at. A good seller’s agent will take good photos of a property or hire a professional photographer if needed. The photos and videos that are put up online are a big part of how homes get sold. Buyers want to know the property before they even see it in person. A realtor can help make this impression visible online.
Communicate With You
An agent should keep their sellers informed about what’s going on in the sale of their home. Even if offers haven’t come in, realtors should be getting in touch with their clients regularly to update them on home showings, concerns, and open house dates. A good seller’s agent will regularly communicate with you throughout the sale of your home. At the start of the sale, you’ll know a realtor is a good fit since they’ll return your calls and e-mails promptly.
Be There For The Home Appraisal
When you’re selling your home, the appraisal can be one of the most nerve-wracking things that occurs during the entire process. Your agent should attend the appraisal to help clarify confusion and answer the appraiser’s questions. The realtor will be educated on the recent updates that have been made to the home. These are what add immense value to the home.
If you’re selling your home it can be frustrating when you aren’t receiving any offers. Perhaps you’ve heard that it’s a seller’s market and that the offers on your house would be flying in. However, it’s more complicated than that.
Whether or not your house receives offers is determined by a number of reasons--some that in your control, others that aren’t. But, that doesn’t mean you have to give up and sell your house at a low price.
In this article, we’ll discuss what to do if your house just isn’t selling. We’ll talk about some reasons why people may be hesitant to bid, to inquire about a showing, and to seal the deal and purchase your home.
Revisit the comparable properties
If your home has been on the market for a while, it’s a good idea to check out the other recent homes in your neighborhood to see how their prices compare to the listing price of your home. Since the market fluctuates, other sellers could be adjusting the cost to reflect the current rates, leaving yours higher than it should be.
When pricing your home, make sure you are comparing your house to those that have actually sold. Using houses that have been on the market for a while as a baseline might mean you’ve priced your home too high to sell just like theirs.
Also, make sure you are using houses that share many of the common features that yours does. This can include:
The year the house was built
Number of bedrooms and baths
The lot size
The condition of the home
Remember, it isn’t all just about location.
Getting more leads
If people aren’t making inquiries about your home, there are a few things you should check up on. First, make sure your listings are updated and accurate. The contact info should be easy to find, and you or your real estate agent should provide multiple means of contact (email, cell phone, text, etc.).
Next, ensure that you’ve given enough details about the house. If people are searching for a specific number of rooms but your listing doesn’t mention the number of rooms you have, you might be missing out on several inquiries.
Finally, make sure your photos are high resolution and well-lit. You want to make sure visitors to your listing can get a clear idea of what your home looks like. If your photos are small, dark, blurry, or if they make the house look cramped and cluttered, you should retake your photos or consider hiring a photographer.
Getting more offers
If you’ve had plenty of inquiries and showings but you aren’t getting any offers there may be a deeper, underlying issue that needs to be addressed. Usually, this means your home needs important repairs and upgrades that buyers simply don’t want to make.
If your house is priced to be move-in ready but it’s not, you’ll have to make some upgrades or lower the price.
Not working with an agent
Sellers can also have a difficult time getting offers if they attempt to sell the home themselves without using a real estate agent. If your home is FSBO (For Sale by Owner), you’re missing out on a number of listing services and connections that an agent can provide.
After you accept a homebuyer's offer on your residence, he or she likely will complete a home inspection. Then, the homebuyer may choose to move forward with the home purchase, rescind or modify his or her offer or ask the home seller to complete home improvements.
Ultimately, a home seller is likely to have many questions following a home inspection, including:
1. What did the homebuyer discover during the home inspection?
As a home seller, it is important to do everything possible to enhance your residence before you add it to the real estate market. By doing so, you can boost your chances of generating substantial interest in your house. Plus, when a homebuyer performs a home inspection, he or she is unlikely to find any problems that may slow down the home selling process.
An informed home seller may conduct a home appraisal prior to listing his or her house on the real estate market. This appraisal enables a home seller to identify potential trouble areas within a residence and explore ways to address such problems.
If you failed to perform a home appraisal, there is no need to worry. For home sellers, it is important to see a home inspection as a learning opportunity. And if a homebuyer identifies problems with your residence during a home inspection, you should try to work with him or her to resolve these issues.
2. Should I stand my ground after a home inspection?
Be realistic after a home inspection, and you'll be able to make the best decision about how to proceed.
For example, a home seller who goes above and beyond the call of duty may address major home problems prior to listing his or her house on the real estate market. This home seller will dedicate the necessary time and resources to correct home problems and ensure a homebuyer is able to purchase a top-notch residence.
But what happens if a homebuyer identifies problems during a home inspection, despite the fact that a home seller already tried to correct various home issues?
A home seller should consider the homebuyer's inspection report findings closely. If minor home repairs are needed, he or she may be able to fix these problems to move forward with a home sale. Or, if a homebuyer is making exorbitant demands, a home seller may feel comfortable allowing the homebuyer to walk away from a home sale.
3. How should I proceed after a home inspection?
A home inspection can be stressful for both a home seller and a homebuyer. After the home inspection is completed, both parties will be better equipped than ever before to make informed decisions.
If a homebuyer encounters many problems with a residence, he or she will let the home seller know about these issues. Then, a home seller can complete assorted home repairs, offer a discounted price on a home or refuse to perform the requested home maintenance.
Working with a real estate agent is ideal for a home seller, particularly when it comes to home inspections. A real estate agent will negotiate with a homebuyer on your behalf and ensure you streamline the home selling process.
Attending an open house is like going on a job interview. House sellers and their realtor may appear to be in total control of the process. But, that’s not the case. As a home buyer, you can put yourself in the driver’s seat by making a thorough review of the house. You can also ask home sellers or their realtor the following questions.
Answers to these open house questions could land you a great new homeowner deal
Several questions to ask realtors and home sellers can be asked as you walk through the house. It’s good to ask other questions after you have finished walking through the house and have a better idea of the house layout, features and amenities.
How many offers have you received on the house so far? Low interest in the house could be a sign that the house has problems or is located in a depressed neighborhood. It could also be a sign that the house just went up for sale or that you could get a good price for the house.
Why did you put your house on the market? Again, similar to a job interview, the answer to this question is revealing. Just as you’d want to know why someone left their job, find out why sellers want to part with their house.
Tell me how long your house has been on the market. Look to negotiate for a lower price if the house has been on the market for an extended period of time. This could prove to be a real bargaining chip.
Have you done anything since you put the house on the market to try to generate a sale? If so, what exactly did you do? Find out if the seller lowered the price on the house. Did they offer to pay the closing costs? Is the realtor advertising that the sellers will include appliances like a refrigerator, stove and oven or washer and dryer in to attract buyers?
More revealing questions to ask home sellers
How soon after the house is sold will the sellers be ready to move out of the house? Make sure that you can move into your new home when you’re ready.
Please tell me how long you have lived in the neighborhood. Also, ask what the neighbors are like.
What do you like best about the house and the neighborhood? Also ask sellers what they like east about the house and what they wish was different about the neighborhood.
Reach out to the home seller’s realtor if you want to schedule a private viewing of a house. Arrive to an open house early enough to give yourself time to explore the house fully. The last thing you want is to make a rush decision on a house. Another tip is to bring a relative or friend with you, someone who understands houses, including a house’s structure, pipes and wiring. Before you leave, meet with the realtor or house sellers and ask them the right questions. Answers to these questions provide you the information that you need to make a wise house buying decision.