Curt, Both Buyer and Seller in MD/FL

What would be better to get buyers to buy? 1. To reduce the sale price2. Add incentive $$ to the sale

Asked by Curt, MD/FL Tue Mar 11, 2008

amount for updating
3. Spend the money to update the house with new carpet/counters/paint before sale

We can't do more than one of these and are already going to list the house for a sum a lot less than we paid.

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Answers

12
Curt
I am sorry for your situation. However, it is not uncommon.
There are some truths that you need to know:
1. The amount you paid, the amount you owe, the amount you invest into improvements...none of that matters to a buyer. A buyer is only going to pay Market Price.
2. Examine WHY you are moving. What you are trying to accomplish. In these buyer's markets many people need to bring money to the lcosing table to accomplish their goal.
3. IMost markets (disclaimer) are either flat or declining. That means that more market time is a bad thing. Homes that sell in the first 30 days will sell closest to asking, the longer your home sits, the less you will make.

So get an honest assessment of your home's market value.
Buyers want:
1. Fresh paint
2. Clean, Clean Clean
3. De-clutter (space equals value)
4. De-personalize
5. Throw in extras - home wararnty, appliances more than five years old, patio furniture. Price what it may cost to move something....
6. Go look at the homes with which you will be competing. How do they stack up
7. What would you pay for your home? Take that same amount, and see what else you can buy.

It says you are buyuing and seller in the same location. So if you can swing it, you might end up keeping your current home as a rental. I know it's not your first choice, however my wife and I became accidental investors and it was a great experience (in hindsight...at the time it was a pain).

So talk with some local Realtors and come up with a plan, develoip some options. Spring market is starting now!
One more thing...if you are moving up (buying a larger home), there might be some advantages. If the market is slipping you might not make as much on your home, but you can probably negotiate better on the new one.
2 votes Thank Flag Link Tue Mar 11, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Hello Curt,

All of the above would be ideal, however, in this market price is critical and will attract buyers. Even though you are selling it for less than what you paid, this may still not be enough to sell.

In order to sell your home, it must be better than the competition. If you have to sell, it is better to lower the price now, than do monthly reductions. Once you have missed the "market" price, it is hard to catch up.
Your house is a commoditiy and their is more inventory than buyers.

It's better to take a loss now, than a greater loss in 3 or more months because you have no offer. Please make sure that you have an experienced Realtor do a market analysis for you to see where the house should be priced at. Do not choose a Realtor who is not willing to tell you the truth but just wants the listing.

In this market time is not on your side. Sorry


Make sure that the Realtor has a solid marketing plan to market the property. This is crucial as you need the exposure to make your home stand out and especially in this market.

They must have a good presence on the internet as that is where 87% of buyers begin their home search. Also make sure that they advertise internationally as our buyers are now global.

I hope this information helps. You can check out my site for more useful hints.
http://www.PhilFowler.com
Web Reference: http://wwwPhilFowler.com
2 votes Thank Flag Link Tue Mar 11, 2008
Curt:

My opinion.
1. If there are any bright colors, (pinks, orange, purples, lime greens,etc.) eliminate them. Neutral colors are always the best option and paint is the best investment you can make.
2. Clean with a toothbrush every line grout and crack, a clean an organize house speaks millions, and gives buyer the impresion they are buying well cared and quality property.
3. Depending on your price range, if you are targeting first time buyers, then incentives towards closing cost, to help them afford the loan. If you are targetting people moving up to bigger homes, then price reduction is what they want.

But 1 and 2 should come first. Hope this helps.

Tony.Vega@coldwellbanker.com
2 votes Thank Flag Link Tue Mar 11, 2008
This is a response to my question and some of yours. We have already relocated due to jobs and now have a house in Wesley Chapel FL that's being rented to keep us afloat (barely). We really want to buy a house here in MD while the market is still a buyer's market, but aren't sure how hard it will be to sell our home there. We won't have much time to come down and repaint, recarpet, etc and will have to rely on a realtor to help us out by telling us what needs done to sell it quickly. The house was built in 2006, is just over 3000 sqft, 4/3.5/2, sits on one of the nicest lots in the neighborhood with woods/pond, and has A-rates schools around the corner. Prices have fallen sharply in the area and new homes are still being built in the neighborhood. We are planning to take a huge loss ($70+K), but are okay with that as long as it sells. Do you think that pricing it $30K below market will make it sell quicker in this growing area with new to be built homes available?
1 vote Thank Flag Link Thu Mar 13, 2008
You'll probably get many opinions since we all think differently =), but here's mine, FWIW. I would always recommend reducing the asking price instead of adding incentives. My reason is, most REALTORS are not reading the description or special comments section when they're searching for listings in the MLS. AND, they're probably searching by price range, first and foremost.

As for the updates, whatever you can afford to do, without raising the asking price, is going to help you sell faster! All the buyers I've worked with over the last year, have purchased what was priced the lowest AND showed the best. Right now, they're wanting it all.

Just talk openly with your REALTOR and decide what works best for you.

Good luck!
1 vote Thank Flag Link Tue Mar 11, 2008
Offer to help buyers with closing costs.
0 votes Thank Flag Link Fri Mar 21, 2008
Regardless of where you and live and what your particular market is. The best way to sell your home is to offer it at the best price among the competition. If you are in a subdivision you need price your home so that is one of the 3 lowest priced of its size and condition. It is best to be the lowest price. At this stage of the market, price is the most important. Clean the home and spend as little as possible before putting it on the market. Good luck to you!
0 votes Thank Flag Link Fri Mar 14, 2008
Curt,
Based on your last response (copied below) I would HIGHLY advise you to get a professional in the area to assist you in selling this property. I do not work in that area (used to a year or so ago) but the bad news is Wesley is not doing so well...

There are many reasons why, but what you need now, is to get RID of this house, no matter what it takes and move on with your life in MD.

I know some excellent agents to put you in touch with to help you. The 'powers that be' say the market is going to get better between May - Aug, lol, they may have a crystal ball that the rest of us don't, but it would be great to see that happen!
what you need now is a good agent, that can give you stats, works the area and knows it like the back of their hand and can help you with the transistion you are in.

If you want some references, email or call me, and I'll be happy to pass along some great names.......I've been in this business since 1979, I'm a local native, and I don't tell you what you 'want' to hear, I tell you what you 'need' to hear to get where you want to be.

No money in it for me, so if you want an unbiased opinion, let me know. I'd be happy to help.

Best regards,
Paula Bean
Orlando, FL
0 votes Thank Flag Link Thu Mar 13, 2008
Curt, based on the specifics you've now provided, I'd say to reduce it as much as you can, AND take care of off the minor improvements that can be done without preventing you from being able to reduce as much as possible. Since the house was just built in 2006, can we assume it's in very good condition? Or is it showing a lot of wear, in too short of a period of time. Those are all things to consider. How does it compare to your competition? Use that information to make your decision on how much updating or replacing to do, then price as far below your competition as you can, to appeal to the buyers.
0 votes Thank Flag Link Thu Mar 13, 2008
Dear Curt,
My buyers are not interested in incentives. If they want an incentive, they will ask for it. They want homes that have new and/or clean carpet, neutral painted walls and clean & sparkling kitchens & bath. Break out the scrouring rags, get the grout clean and caulk those cracks. In addition, you have to price it right. Otherwise, you will continue to invest in a home that will go no where in today's market. Buyers are buying the BEST house in their price range. Alll the average homes are sitting. Ask your Realtor how many of their listings are selling, not sitting. Best wishes
0 votes Thank Flag Link Wed Mar 12, 2008
EXCELLENT suggestions by all, but I'll add more.

WHERE is the house you are selling?
profile says buyer/seller MD/FL.
Are you selling in MD and buying in FL or the other way around?

THIS is extremely important as real estate is local. What buyers in FL want, and what works in MD and with the difference in pricing, you need to know the buying and selling habits of each location.

That would lead to the next question, since real estate is local, exactly where in MD and FL are you doing your move? Within each State, the buying and selling habits are also different.

Do you have a Realtor in both places that is knowledgeable in this process? If not, I'd highly advise that you do so as selling in one State, relocating to another and buying, is an extremely stressful and complicated process, Especially in THIS MARKET. argh!!

Good luck, and keep us informed!
Web Reference: http://www.HomeOrlando.com
0 votes Thank Flag Link Tue Mar 11, 2008
You might consider a buyout option where you offer to buy down the buyers mortgage rate. If you pay points upon closing the contract to their mortgage company, typically 6 points equals 1% reduction in mortgage. This will create a savings to the buyer of $40 per month in the mortgage per $1,000 of buydown. If you reduce the selling price of your home by a $1,000 this will only save the buyer $8 per
month per $1,000 in mortgage payment.
0 votes Thank Flag Link Tue Mar 11, 2008
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