Simple Debt-Free Finance

A Simple Approach to Getting Out of Debt & Into Wealth

How I Sold My House In a Down Market.

Posted on | June 26, 2008 |

How To Sell Your House In a Down Market.

WE SOLD OUR HOME!

Words cannot express the joy and relief my wife and I feel. We were certain we would sell our home in time (by following the points laid out in this post), but we were getting very tired of the disruption to our life from numerous showings.

In the end, our home was on the market only 18 days less than the average when we listed, but as you’ll see that is quite a bit less than our neighborhood competition.

Staging.

People shell out big bucks for professional stagers, and while some will argue that it is money well spent, especially in a buyer’s market, there are a lot of things you can do yourself. This is how we sold our house in a down market, for 97% of our asking price (the average for our area is currently 94%).

Keeping Up Appearances.

OUTSIDE.

This is more than just curb appeal. First impressions count - make sure your lawn, hedges, driveway etc look well kept. Plant some flowers, or hanging baskets out front to add color to the overall appearance. Remove dead branches, cut grass and other debris. Clean the sidewalk and patch the driveway.

If you’ve got lawn equipment lying about the yard or cut wood in a pile, neaten it up. Store what equipment you can in the shed or garage, and stack the wood neatly.

Make sure the front door, and siding look fresh and not faded. Powerwash the siding or paint the front door if you need to.

Make sure the mailbox isn’t leaning like a certain famous Italian landmark.

Fix broken windows and screens. You wouldn’t go to a job interview dressed in rags, why send your house to one like that?

Clean out the shed and garage. If you’re selling your house in the spring, put the snow blower into storage. The perfect garage contains only a car - do your best.

INSIDE.

Eliminate the clutter.

Sell what you don’t need or use at a yard sale or on eBay. Rent a storage unit if you must, but streamline and eliminate what you don’t absolutely need for the next 3 months or more. We put our 6ft entertainment center in storage and put the T. V. on a table just big enough that we borrowed from the in-laws. The result: the living room, which looked like a tight-fit previously, became positively spacious.

Brighten the rooms with a fresh coat of paint, but be careful - stick with neutral colors or risk turning prospective buyers off with too bold a color.

Clean the windows.

Shampoo the carpets.

Polish the hardwood.

Replace the light bulbs with a higher wattage - you want the house to sparkle and gleam with newness, or at least the impression of it.

Clear off the countertops and clear out the cabinets.

Clean the oven and the refrigerator.

Vacuum under things - eliminate dust and debris.

Tighten loose door knobs, and cabinet doors.

Replace or remove peeling wallpaper.

Tips for showing your home.

Do your best to impart a welcoming feel to the home. Light some scented candles, but make sure they are a subtle aroma and only do so about an hour before the showing. You do not want your home to smell like the Yankee Candle Shop when your buyers walk in the door.

Clear out the kids, toys, cat and dog.

Turn on as many lights as you can - you want to make the home appear bright and clean!

Put out a vase of fresh flowers on the table.

Put out your best towels. My wife and I called these our “hotel towels”. Not because they were stolen from a hotel, but because they were new and neatly pressed. We never used them, but we would hang them before a showing.

Make yourself scarce. This is huge. My wife and I looked a dozens of homes, and we were surprised at how many had the owners still inside! Another major DON’T is leaving the television or radio on. You want your buyers to feel like the home is theirs or could be theirs. If the T. V. or radio is on it’s a strong reminder that someone else lives there and the buyer feels like the real owner could return at any moment. Not the vibe you want to create when selling your home.

The Single Biggest Thing You Can Do To Sell Your House Fast.

Set the proper price.

It’s that simple. But that doesn’t mean it’s easy. There is a lot of research and psychology that goes with pricing a home.

When you hire a Realtor,  he will show you the “comparables” in your neighborhood. This is what recent homes sold for, what listings are active and what houses were pulled from the market without selling. The recent sales will give you a ball-park idea of what people are currently willing to pay for a house like yours, the houses that were de-listed will tell you what is too much to ask for, and the current listings will show you your competition.

The biggest mistake people make when pricing their home is to start high with the thinking that it provides “bargaining room” to move down when the negotiation phase begins. The problem with this thinking is that if you start too high, you’ve already dropped your price precipitously by the time the negotiation phase begins.

Here’s why.

When your house is priced too high, it attracts lookers, not buyers. It brings the busy bodies and gossiping neighbors out. It brings out the people who wonder, “What have they got that makes that house worth so much?”

When your house is priced too high, it implies you aren’t motivated to sell.

When your house is priced too high, it keeps people away, which reduces showings and eliminates the potential buyers that never make to the negotiation phase.

When your house is priced too high, it makes the competition look better.

When your house is priced too high, may make it difficult or impossible for a buyer to secure a loan if the bank doesn’t appraise the house’s value for the amount you’re asking.

When your house is priced too high, you usually end up dropping significantly and waiting much longer to get a buyer and by that time you have weakened your negotiating position.

The best offers come when the property is newly listed. If the price is right, this creates a “buzz” among realtors and the buyers they represent. Realtors want to find the right home for their buyers as quickly as possible, and when the see a home that fits the needs AND is priced fairly, this makes their job much easier. That translates into more action and offers for you.

I had the opportunity to see all of this first hand. Our neighborhood is approximately 50 houses. They are cookie-cutter, starter-homes, meaning that they all have about the same amenities. Some have gas fireplaces, some don’t, etc.. but they all have the same square footage, number of bedrooms and lot size. There’s very little to distinguish one from another. Given that, you’d expect the price of the homes to be in line with the similarities, but that’s not the case.

Our home was on the market for 72 days. The average time for our area is 3 months (90 days). There are 7 other homes for sale in our development. Only one has sold in that 72 day period. It was ours, and we only had one offer. This means there is serious competition to attract serious buyers out there. In a market with these conditions it’s not about getting top dollar, it’s about getting the buyer.

I am certain that the main reason we got the only buyer to come through the neighborhood in 72 days was that our price was fair market value. Of the 7 other homes in the neighborhood, 3 are priced at $10k more than what we sold our house for (they started at $15k more), 3 of the other 4 homes are $15k more (they have yet to reduce) and the last home is a stunning $20k more (they came down from $25k more!). The average time on the market for those 7 homes is 110 days!

My wife and I loved those homes. With competition like that, it made the process much easier for us.

It will be interesting to see how it plays out, but I would wager that IF those 7 homes sell, they will end up at less than what ours sold for and after much more of a headache.

Technorati Tags: , , , ,

Bookmark and Share
Related Posts Related Websites
Category: Home Selling, Real Estate

Comments

4 Responses to “How I Sold My House In a Down Market.”

  1. i sold my house
    July 29th, 2008 @ 11:34 am

    [...] [...]

  2. Don't Look Now, but Home Sales are Rising! | Simple Debt-Free Finance
    January 27th, 2009 @ 8:59 am

    [...] when we sold our house, my wife an I were in awe at the other houses in our neighborhood. Every house was identical, save [...]

  3. Recessed Lighting Guide
    February 23rd, 2009 @ 11:59 pm

    I’m not planning to sell my home now but your article really gave me some great food for thought. I’m aware that looks matter. But didn’t realize that it applies to selling a home too! Great article!

  4. gold coins to buy
    February 26th, 2009 @ 11:12 pm

    Very lucky you! just consider investing in gold. The only real estate good to buy is very desirable location real estate or just hide your money.

Leave a Reply





  • Search

  • Get Updates

    Subscribe in NewsGator Online
    Subscribe in Bloglines
    Add to Technorati Favorites

  • Recent Comments

  • Contact

    If comments aren't enough, feel free to contact me at:

    Join me on FaceBook

    Technorati Profile
    Blogs That Follow

  • Recent Tweets

    What I've been up to:
      follow me on Twitter
    • Frugal Hackers badgeMoney Hackers Network
      RSSMountain RSS Directory On our way to 1,000,000 rss feeds - millionrss.com
      Investing Blog Directory RSS Search Blogged.com hihera.com Blog directory

    • Tags

    • Disclaimer

      The information and opinions provided on this site do not constitute professional advice. This blog is intended to provide general information only about the author's own personal financial journey. While all information shared here is believed to be accurate, the owner/operator of this website specifically disclaims all warranties expressed, implied or statutory, regarding the accuracy, timeliness, and/or completeness of the information contained herein. You are advised to discuss your specific requirements with an independent financial adviser. All posts are © 2008-2011, Simple Debt Free Finance.

    • Unique visits since 2008:

    • ss_blog_claim=f34d742cbb91cfd8bb6b4f0e010113be ss_blog_claim=f34d742cbb91cfd8bb6b4f0e010113be

    • Useful Links: