Your real estate broker has the responsibility to market your property aggressively. The broker should make use of all the traditional marketing activities such as placing the property in the local MLS and nearby MLS systems. A broker should provide attractive literature that features all the assets your property possesses. A broker should take many, many pictures of your property and publish the best on brochures and on the Internet. A broker should provide prominent placement for your home on the broker’s website and that site should be easily accessed by search engines on the Internet where over 70% of buyers begin their property search. Finally, the broker should make use of print advertising and direct mail.
In this slow real estate market sellers must analyze conditions very carefully. While there are not as many buyers as there were only a year or two ago, there are still many shoppers who will buy when they find a property that is priced competitively. If you have chosen a good broker who has provided a sound marketing plan, there is really only one reason why buyers do not pass through your door to view your home€¦ PRICE!
If your home is competitively priced on paper, people will look€¦ Then you must analyze the reason why there are no offers. Usually, it is the same answer€¦ PRICE! Once inside, a customer will see every asset and flaw. To be sure that your home is in perfect shape to sell, read our article, Getting Your Home Ready To Sell. The condition of your home will be the second most important factor. You must work hard to be objective. You have lived in this home and it has been comfortable and cozy. There were great memories and emotional times. A buyer does not have that history and must make his or her own memories. If your home needs to be painted, paint it or price it accordingly. If the carpet is even “a little worn€, that is too much for a buyer€¦. Replace it or price it accordingly. For a little more on this subject, read the report, Pricing Your Home.
The buyers we are seeing today are different from a year or two ago. There were many investors buying homes to “flip€ or as rentals, thus driving prices to unrealistic levels. This investor mania drove prices too high. Those shopping today are mostly in the market for personal use. They can’t or won’t pay the prices of only one year ago.
This last week Andy and I showed a couple from England over 25 homes. They are willing to spend $500,000 and they have a surfeit of choices. They are looking for a home in Rotonda West, FL, (Rotunda), a very popular destination for British visitors and second home owners. We marched through builder’s models that were being offered at DEEP discounts. We visited golf course homes in Rotonda. We visited waterfront homes in Rotonda. We inspected elegantly appointed homes and plain homes.
These buyers have narrowed the field to three nice homes, all in Rotonda (Rotunda) West, FL. They know exactly what each is worth through comparison shopping. They know who is asking too much and which homes are priced correctly. They will start with one home, making a fair offer. If the seller does not make a reasonable counteroffer, they will move on to the next€¦
Even in a seller’s market, sellers can price themselves out of the market. Many of the homes currently for sale in Rotonda (Rotunda), Port Charlotte, North Port, and Punta Gorda have been on the market for over a year. They began their marketing plan during the buying frenzy. I have heard more than one seller say, “I’m not going to give it away€¦€ or “My neighbor got so much for his house and mine is better€¦€ and I can’t disagree. Almost every time, the seller is right! His house is better! Compared to his neighbor, he is giving it away. Nevertheless, we must face market realities. Price it to sell under today’s market conditions or take it off the market and wait€¦
Market conditions are dynamic and change constantly. Mortgage interest rate changes affect a buyer’s ability and that can affect the entire market. A change from 6% to 6.75% is about $150 per month on a $300,000 mortgage, adding over $54,000 to the loan over 30 years. Adding $150 to a loan payment may disqualify a buyer make one less person who can afford your home.
Don’t be afraid to lower the price of your property in stages. There are good reasons for this approach. When you adjust a price in the MLS System, your home will show up on the realtor daily “hot list€ report of properties. Another reason: you can “test the market€ at a price you think appropriate. Give it two to four weeks. Count the number of viewings and analyze their criticism. Conduct another CMA (Comparative Market Analysis) then adjust the price.
Your asking price must be close to, or lower than, the lowest comparable property. Why would a buyer purchase your property if they could obtain a comparable at less money? The first price adjustment must be five or ten percent to show the market that you are realistic and competitive. Occasionally, a larger first adjustment is necessary when market conditions are causing prices to drop. You must stay ahead of the curve. You then must analyze “traffic€ at your property, that is, interested buyer visits, on a weekly basis and make adjustments at $5,000 intervals.
If you have a broker who has done a good job of marketing your property, the only thing left to do is make it price competitive. There is always someone who will buy a property. Even a broken down shack in Alaska will sell if the price is right.
Sometimes the only right decision is to hold. If you can’t sell your home at market price because you won’t be able to afford another or you won’t have enough left over to pay off the mortgage or a host of other reasons, be content to stay there a few more years. Interest rates will change, market conditions will change. Time is on your side!
Jim Mulligan (941) 456-3034
Andy Leonard (941) 662-0033
Questions questions@suncoasteam.com
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