Two years ago, you signed a contract to build your dream
home. It’s nearly finished, and you move in soon. But you
haven’t sold your current house yet, and you’re starting to
worry.
It wasn’t supposed to be like this. Two years ago, houses were
selling in a day, for more than their listing price. You figured
you’d be able to sell your house easily, just in time to move into
your dream home.
My, how things have changed. Your house isn’t worth as much
as you thought it was, and you won’t be able to sell it as quickly
as you’d hoped. But all is not lost. Let’s just work through the
problem as best we can.
First, if you are trying to sell your home yourself, stop. This is
not the time to go it alone. Immediately list your home with a
Realtor. But not just any Realtor. Choose one who was in the
business in the early 1990s (the last time the real estate market
was soft), who can use his or her experience to help you in this
market.
If your house is already listed, ask yourself whether you have
implemented all the suggestions your Realtor has given you.
Good Realtors offer excellent tips that can make your house
“show” well, boosting the likelihood it’ll get sold.
Start with the yard. Curb appeal is critical: The way your home
appears from the street is essential to getting a prospective
purchaser interested in buying your home. Once inside, how
does the place look? Your kitchen cabinets, appliances and
bathroom fixtures need to be modern and in good condition,
because few buyers want the hassle of replacing carpets,
painting walls, removing wallpaper or making repairs.
Remember, your biggest competitor isn’t the home for sale over
on the next block; it’s the new home being constructed down
the street. In new construction, all a buyer needs to do is move
in. So make sure that moving is the only thing your prospective
buyer needs to do too.
Try not to move out of your old house until it is sold; an empty
house rarely shows as well as those that have a lived-in feel.
An empty house also communicates to the buyer that you’re
desperate to sell, which will reduce the number (and price) of
serious offers.
Most important, have you accepted your Realtor’s advice
regarding the asking price? You should price the house to sell
in 30 days, and in this market, that could require you to lower
the price. If you are shocked by the price suggested by your
Realtor, you’re probably headed in the right direction. The
reason: Most sellers think last year’s prices are still valid.
They’re not. You won’t get the price that you might have gotten
in 2005, or even in 2004. Instead, you’re more likely to be
offered a price similar to those offered in 2003.
Ask your Realtor for a marketing plan. The key is to get other
real estate agents to tour your home. Talk with your Realtor about open houses, and
consider incentives to encourage other agents to steer their clients to your home. Sellers
have been known to offer everything from extra commissions to vacation trips to bigscreen
TVs and cars!
If it’s becoming clear that you won’t be able to sell your house before you settle on your
new home, talk with your financial advisor to figure out how you can best handle the two
mortgage payments you’re carrying.
In this market, the houses that sell are the ones that are in tip-top shape, are priced right
and have maximum exposure to potential buyers. If this doesn’t sound like your situation,
you have work to do.
