Michael Doyle Realtor
Hello there D Summers. I hear that the main suggestions have been 'lower' the price, and more of the same. My experience has been that a lower price will not produce buyers. When the market is down due to buyers being 'out' of the market (that is what's happening now) then you can reduce your price by 20% and get investors to try and get that price lower yet. Let's face it, sometimes it's just better to take your home off the market for about 6 months and wait for the buyers to come out of hiding. There is so much uncertainty in all the news these days that the average buyer is doubly cautious about making investment. If your property shows 'above' average, is in a good location and is priced within 3% lower than the market, AND the buyers are buying (something you can't control) then I would say your chances of selling would be pretty good. As it is today, because of the massive new construction of the last 2 years, there is enough new home inventory out there to last another year. So be patient and take your home off the market for a while. In a few months, the market will turn around....Hope this helps.
Awarded best answer, I'm sure, because it's what the OP wanted to hear. The fact is, it IS price, and lack of patience. In this market, it's not unusual to not have offers after only one month. And reaonable is not enough either. From my experience with buyers, they want the best house in the best condition for the best price. I know it sounds unreasonable, but if think about, they buyers thought it was unreasonable when seller were raising prices in leaps and bounds a few years ago.
Price is always paramount in selling anything. So in a market that has an over abundance of inventory, you might have to offer your property for a price less than you want, and not realize the profit you hoped to achieve. If you arenâ€™t willing to, or canâ€™t, do this due to equity issues, you might have to weather the stormâ€¦plain and simple. Remember, it makes no difference at all what you think your property is worth, all that matters is what the market says itâ€™s worth.
Knowing your competition is much more critical in a market like this. Look at everything youâ€™re competing against. You are not only competing with your neighbors, you are competing against large corporations that are hurting bad and are willing to take a hit instead of weathering the storm.
Making your property stand out is much more than curb appeal and doing what everyone does when they are trying to sell their propertyâ€¦painting, patching the holes in the walls, cleaning, or replacing the carpet, etc, etc. Itâ€™s that and community appeal. Ask yourself one question when thinking about this selling point, â€œWhy should someone buy my property?â€ Get a pen and some paper and actually write down the reasons. Think beyond your front door. Look at what your neighborhood, schools, and organizations have to offer potential buyers, then in the next selling point, make those reasons known.
Buyers are out there. Yes I said that! But, there is a problemâ€¦they are overwhelmed with choices. Again, real estate is no different than any other item offered up for sale. It has to be marketed and it has to be marketed in a manner that is going to reach as many potential buyers as possible, and reach them as often as possible. Use every possible avenue you can to tell potential buyers, in your target market that your property is for sale, it is priced to move and what it has that the competition doesnâ€™t. Check with your agent, find out how he is marketing your property. Is he using the internet sites that the majority of people go to when they first start looking for real estate? Is he using Craigâ€™s List, Trulia, and Zillow? Is he holding open housesâ€¦yes, complete with balloons and signs? Is he sending fliers and emails to other brokers and agents? All of these things help to get the word out about your property. It helps make it stand out from the competition. With interest rates where they are currently, if you can get your listing in front of the buyers that are out there, and you are willing to seriously work on price, you should have no trouble selling in this market.
1)Price fixes everything. In a free market society, price does fix everything. What does a new car dealer do to get a car sold quickly? They lower the price below what others are offering? What does a clothing store do to get clothing sold they no longer want? They lower the price. Real estate is no different. Now, making sure it's in top shape, marketing it properly does help bring you a higher price, but with the competition out there, you need to lower the price to get showings. The next question becomes "do I want to lower the price far enough to get it sold quickly and maybe loose many thousands of $$$ to get it sold in this touch market.
2)My company is probably the only company in town that offers real "full service". If you are looking for a unique approach to sell your home, you can also lease option the property. This will usually get you at least your asking price. You are taking on a higher risk to do a lease option, higher the risk, the more you should be compensated. The next step is to have your home managed by a professional property management company while your home is a leased home. We manage close to 300 single family homes in the Indianapolis market. Just this past month we did 5 lease options on homes, 1 was a new home I purchased as an investment(so I put my money where my mouth is), the other 4 where for clients in the exact same situation as you are in.
I actually have several people looking for a lease option properly in Pike right now, but do not have any inventory available to put them into.
So, as all successful people say, "think outside the box", especially when the market is slow.
Additionally, you need the house to be a 100% cream puff -- have it looking like a Pottery Barn magazine & then do a professional photo shoot w/ the best photography. I shoot all my houses w/ a fabulous photographer, Rich...I can give you his name. 93% of buyers are finding you online, so an aggressive online strategy is important.
Also, There are about 10 agents who do 90% of the business in Pike, so you need to make sure that your agent is personally promoting your home to us individual agents.
Lastly, you might want to consider ERA's Seller's Security Plan -- it's a guarantee buyout program that guarantees the sale of your home in 180 days. Let me know if you want details about it.
Let me know if you need more help!! --REALTOR, Kristie Smith
Tony Grego - Indiana Mortgage Broker
What does reasonably priced mean to you? How does it compare to the comps?