Selling Home
A successful sale in a
cooling market
After
searching for more than two years, 35-year-old Jason Hitchcock finally
found a
three-bedroom apartment on Manhattan's
Upper West Side to call home. Hitchcock saved several hundred thousand
dollars just by waiting for the market to cool down, he says.
"In the past, buyers were so concerned about getting
into an apartment, they wouldn't
negotiate the
amount," he says. "This year, we had the freedom to be more discerning
buyers and consider the expenses we would incur putting work into the
home." Toward the end of his search, there was also a lot less
competition. Back in 2001, Hitchcock and his wife felt pressured to make
an offer after seeing an apartment only once. He walked through his
current home three times before buying and wasn't afraid to bargain. "A
few years ago, there were no negotiations."
New York isn't the only market that
is cooling. According to the National Association of Realtors (NAR), the
buying frenzy is over in places like Austin, Texas, Tallahassee, Fla., and
Dayton, Ohio. Nationally, the real estate market is hotter than ever.
Existing-home sales increased by 5.5%, to an annual record of 6.47 million
homes sold in August. The previous record was set in July at 6.13 million
homes sold, according to NAR. But NAR explains that those numbers
reflected the high buying activity in June and July caused by interest
rates dipping to a multi-decade low. But as rates continue to rise,
housing will certainly weaken. Normally, for every percentage point that
interest rates rise on a continued basis, up to 300,000 fewer people
nationally buy houses.
For example, as
interest rates rose in 2003, home-sale volume slowed and began to level
off again in 2004 and have remained steady. According to NAR, the real-estate market
returned to what the trade group calls a more balanced market between buyers and
sellers. In a balanced market homes will not sell as quickly and there
will be fewer multiple bids. In a cooling market, if your home has
a deficiency, it won't sell as quickly as the others in your neighborhood and your
asking price should be lower.
So if are planning to put your home
on the market in the near future, call a handyman to make sure everything
is ready to sell. It's an excellent idea to take the pulse of the local
housing market and find out what's selling, what's not and why. Finally,
don't expect to get more for your house than similar houses sold for a
year ago. This is a different market, so look at recent sales data and
price your home accordingly.
Here are some more guidelines to
help you get top dollar for your house:
It's all in the
price
Price, Price Price. The price is the
most important aspect of selling a house. Ask too much, and you home could
lose momentum and get stuck on the market. The longer it's for sale, the
more difficult it is to unload. The first question a buyer asks is how
long has the house been for sale. If your home has been on the market a
while the buyer will wonder what's wrong with the house.
Be careful when setting a price. Your home will sell
faster and at a higher price if you set a proper price. Studies show that
homes that are priced aggressively get lower
offers. In short, overpricing can lead to lower bids. Proper pricing is
the key to higher bids.
So what is the right price for your
home? Do some research. Look at recent sales in your neighborhood and
remember to factor in condition of your house. A home buyer in a balanced
market is still going to pay more for a new kitchen with Snaidero cabinets
and a Bosch refrigerator. But if the last time you remodeled your kitchen
was in 1960 and you proudly showcase your Harvest Gold stove and
countertop, you had better be prepared to drop your price enough for the
new owner to renovate your relic.
Curb
Appeal
First impressions are lasting. Make
sure you don't turn off a potential buyer before he or she even walks in
the door. You should definitely consider a fresh coat of paint, and call a
landscaper to get your lawn in first-class shape. Spend time on your lawn.
Grass should be green and weed free. Make sure your shrubs are trimmed and
buy some flowers to lead into your home. Inexpensive potted flowers can
make your home seem more appealing.
Renovate if
necessary
Various renovations may be worth the
investment. You may see the need for an extra bathroom to make your home
more marketable. Some paint or new carpeting could also provide a generous
return on investment. An out-of-date ten-room home in Nashville, for
example, might go for roughly $130,000. Pull the shag carpeting and 1970's
wallpaper - a project that costs roughly $15,000 - and that same home
could list for $170,000.
Repair
Everything
Make sure everything is in good
condition. Have an inspector evaluate everything from your attic to
basement including your central air conditioning system, water heater and
roof. If there are any doubts about the mechanics of the home, a buyer may
walk away.
Pay attention to the details because
even minor repairs are crucial. Hire a contractor to carefully go through
your home. Clean the gutters and make sure the tub is sparkling with new
grout and caulk in the joints if necessary. Windows should easily slide
open and stay open. Check your kitchen cabinets to make sure they also
open with ease. Remember to paint over any water stains. If you don't, a
likely buyer could see it as a caveat of a larger issue.
Prepare to drop your asking price if
you're committed to sell your home as is. In some cases the price cures
everything. A buyer will forgive deficiencies if compensated generously.
Presenting your home
It goes without saying, keep your
home as clean and pristine as possible. Every area of you home should be
uncluttered and spacious, so clean out closets and remove excess
furniture. You want your home to look as open as possible. Nice touches
include fresh flowers and a clean fragrance. Some people suggest baking
cookies, but that may be a little cliché and obvious.
How long will it take to get
everything ready and sell the house? Most likely a good six months. It
takes time to plan if you want to do everything right. It will all be
worth the hassle in the end. You can get the best price for your home in
any market. It just takes a little hard work
