Successfully Selling Your Home in a Tough Environment

This is a tough real estate market and sellers are running into all types of difficulties. So, how do you sell a house in this market? It really comes down to your mindset. I find that many people are trying to sell their homes with the mindset that we are still in a booming real estate market. Unfortunately, that is far from the case.

So, let’s talk about some tips that you consider if you are contemplating selling your home.

1) Unless you have an unlimited amount of patience during the sales process, accept the possibility that you are going to have to sell your home for much less than you would like.

It is a buyers’ market. There are two types of buyers. First, you have the buyer who is looking for the good deal. They are watching the prices of homes and looking for panicky sellers. Second, you have the buyers who are waiting. They feel pretty certain that prices will be much lower; thus, they wait. To motivate interest in your home, the price has got to be competitive. Unfortunately, a competitive price comes out a discount. However, that is not so bad news. You can make up that price discount with the next tip.

2) You are not only a home seller, but you are also a home buyer.

So, you unfortunately took a lot less than you wanted when you sold your home. The key is to make up for it on the back-end. This is where you really have to do your homework and look for the good deal. Find areas of the city that interest you. Then look at the homes that have been on the market. Make notes of how long they have been on the market. If the house is vacant and it has been on the market for a long time, you might just find a motivated seller.

The key is to determine the amount you want to finance following the sale of your house and the purchase of another one. Obviously, you will have a lower down payment if you sell your house at a discount. Thus, you have to be a great buyer.

3) Resist putting a great deal of money into the house.

You might think that the carpet looks bad. You might not like the paint. Well, guess what? A prospective buyer might not care for the new paint or carpet that you choose to put in the house. You spend all of that money and the new buyer just paints and carpets over it.

Yes do some small things that create nice curb appeal and create value in the selling price. However, be smart about it and keep your costs at a minimum. Remember, you are trying to get everything possible out of this house. Keep those expenses down.

4) Cut your costs but don’t cut your realtor.

Realtors are worth any money that you pay in the home selling area and they earn every penny of it. Not only do you get on the listing service, you also get internet exposure. Buyers go to the net first now. Realtors know which sellers might be motivated. They can cut down on your legwork. Plus, the realtor can negotiate for you. You are always better off having someone handle those negotiations.

5) Consider renting until you find that perfect deal.

Maybe you are lucky enough to sell your home quickly. If you haven’t found something, I think that it makes sense to consider renting for a while. The buying process is crucial and you need plenty of time to go through the process.

Yes, the real estate markets are in a tough spot. However, that doesn’t mean you cannot successfully put a good deal together. Today’s real estate market requires you to look at the whole deal, including both the sale and the buy, and that you work hard to obtain the right overall deal that makes sense for you and your family.

Copyright © 2008 Prudent Money and Bob Brooks. All rights reserved.