I read this well thought-out statement this past week in The Wall Street Journal with interest. The reporter, David Crook, in his article entitled “How to Sell a House, When You Have to Sell it Now” gave sellers seven tips on selling a house in the current market.
While some of the statements are debatable depending on the neighborhood and market, what I liked was the fact that he underscored that sellers must separate their emotional attachment to their family home from their financial interest in their family’s largest asset. He noted something that I think in this market many sellers forego, the fact that sellers must treat selling a house as business, and they must approach the sale in a businesslike manner.
Here is a paraphrase of what Crook wrote as his Seven Tips on Selling a House in the Current Market:
Ø Don’t Wait Around: Even in the better housing areas, it’s taking a longer time to sell houses.
Ø Fix it Up and Clean it Up: Buyers are taking your house out on a date. It has to make a good impression.
Ø Price it Competitively: Don’t fight the market by trying to price your house at bubble-era levels or by factoring in all those improvements you made. It won’t fly.
Ø Hire a Top Real Estate Agent: Get the best agent you can find.
Ø Promote. Promote. Promote.: Don’t rely on the agent to do all the work. The agent should pay the usual marketing costs, but you should be prepared to pony up for extras, especially if you insist on more expensive or untraditional promotions.
Ø Play the Banker: If you have no mortgage you have to pay off, your strongest selling point might be your ability to finance all or a substantial part of a buyer’s purchase.
Ø Take the Offer: If any qualified buyer comes in with a reasonable offer, be prepared to accept it.
For the majority of our neighborhoods and most circumstances, Crook’s points are right on the money and all told, should help to synopsize (is that a word?) today’s market for sellers and prospective sellers - especially as you prepare for market release. The key point to remember is pricing. Pricing is probably the single most important factor in today’s market, regardless of the property’s price point. You need to competitively price listings based on current comps that are no more than three months old. In our more sought-after neighborhoods, a significant price reduction where warranted can bring almost immediate results. In some others areas where higher inventory exists, a decent price reduction still cannot ensure a fast sale – all the more need for an attractive price from the get-go.
