Home sellers face a new reality in today’s market as they look to move up, down, in or out of their American dream. Consumers, particularly those who purchased their homes within the last seven years, often find their options limited by a lack of equity. Those who can sell are sometimes numbed by deflated home prices and find it difficult to justify yesterday’s valuations with today’s reality.
Many home sellers have dug in on price hoping to lose no additional ground. Others seem to have taken this market personally, letting emotions override analysis when setting price. Buyer sentiment has shifted as well, centered on maximum value with abundant amenities – resulting in stalemates and homes languishing on the market. Both sides should be realistic as comparable sales and local-market dynamics still determine fair-market value.
There are compelling reasons to be realistic and make a move now. Sellers, assuming their objective is to buy another home, can capitalize on some of the lowest mortgage interest rates on record and an inventory of homes at attractive prices. While they will sell for less, they will also buy for less and with significantly cheaper borrowing costs.
Professional sales representation is essential this transitioning. Sellers need local-market experts whose experience, analysis and consultation generate results in all market conditions. The local experts will help set fair-market prices using factual reference points, such as an appraisal, comparables sales and personal knowledge to help estimate market value. Today, a house priced at or slightly below market value will attract the interest of real estate professionals and buyers, while overpricing chases them away. Even if the sellers adjust their prices later, it’s difficult to recapture buyer interest.
Sales professionals develop comprehensive marketing strategies to sell a home. They generally use Internet exposure, MLS, open houses, yard signs, brochures and other means to market properties.
Beyond that, they counsel sellers on other conditions that may keep sellers’ homes on the market, including:
• Condition and appearance. Sellers shouldn’t rely on buyers to use their imagination; they should capture their imagination. Remember that buyers may see seven or eight homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious, and the most cheerful. This invariably means rearranging and eliminating furniture, removing excess knickknacks and so on, to create an open, uncluttered look. Outside, do a visual check of the front of the house from across the street. Does it have curb appeal? It should look inviting, with a trimmed lawn and a freshly painted front door. A real estate professional can offer some guidance in this area.
• Terms/conditions. Keep an open mind on terms and conditions and evaluate how they may affect a potential sale. Even if the home is accurately priced, and the buyers are delighted with what they see, they may not be able to meet the terms of the sale and may walk away.
• Incentives. An incentive can be just the impetus a potential buyer needs to choose your property over another. Consider offering a carpet or paint allowance. If the buyers knows up front there is allowance for the worn carpet or paint, they may overlook those cosmetic flaws. A one-year home warranty is a common, and attractive, incentive in the Brandywine Valley market.
Real estate opportunities abound for sellers and buyers who can come to terms with today’s market conditions. A qualified real estate professional will help you navigate the market, protect your interests and keep you moving toward your housing dreams.
--By Jim DeFrank and Beth Alois
* Jim DeFrank and Beth Alois can be reached at 610-388-3700. Prudential Fox & Roach is an independently owned and operated broker member of BRER Affiliates Inc. Equal Housing Opportunity.
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