« 3 key level to monitor as a Real Estate Investor. | Main | The Real Estate Team Approach, following the model of leading service industries. »
Strategies for selling your home in a Buyers Market
By robertearl | May 19, 2008
So an opportunity has arisen that you must act upon sooner, rather than later. And even though you know that it is a Buyers’ Market, you have to sell you home and you have to sell it fast. Waiting is not an option for you. No matter what the market conditions are, you need to sell your house.
The first one to sell, WINS in a Buyers’ Market. In order to understand the logic, you have to look at the entire transaction as if you were the home buyer and not the home owner. Looking at it like a buyer, If you knew that your area was in a Buyer Market, and you knew that the last property sold for $450,000 & that prices had been declining recently. would you as the buyer, offer more or less than $450,000 for the next home that came on the market? The answer is usually less. So you see, if you were the first one to sell you would win. If you were the one at $450,000 you make more than the next one & so on & so on.
Calculate your holding cost: Most sellers look at the one shear number of how much less they are going to list for as compared to the home that sold 2 years ago or the last property that sold prior to your listing without taking into account something called the waiting cost. Holding cost normally includes the Principal, Interest, Taxes & Insurance that would be outlayed plus any HOA or Condo dues. In addition, add on the amount that property values have been declining and multiple this by the period of time that it has been taking homes to sell. Then ask yourself is it better to hold or wait or is it better to take the “hit” up front, rather than prolonging the issue.
Position yourself to ride the 1st & biggest wave: In a Buyers Market, there is no room for the old mindset or Sellers Market mindset of Pricing it high with room to negotiate or room to come down in the future. With a limited amount of buyers and a greater amount of inventory, the time to price the property correctly is right up front. The greatest number of prospective buyers will be coming through your property in the 1st 30 days and most of these will categorize your property as overpriced & move on to another property if it is not correct when they first see it. It is very important that you determine your Northern Virginia Condo & House Values correctly. Worst, they will categorize you as the owners that are not serious to sell.
The Silver Lining to selling a condo in Northern Virginia during in a Buyers Market is when you are trading up. Sure, you are not getting as much as you wanted on your existing property, but you will be paying the same percentage less in a trade up situation. And the same % of a larger number means you are saving more money than you “lost” on your current property.
Remember, In a Buyers Market, marked by declining prices, each month you wait to sell results in less money you will get at closing.
Robert Earl - Founder of The Earl of Real Estate Team is a Real Estate Entrepreneur serving the Northern Virginia Real Estate Market. The Earl of Real Estate Team loves working with Arlington VA Real Estate, Condos, Townhomes & Homes for Sale
Technorati Tags: sell it fast, Buyers’ Market, prospective buyers, Northern Virginia Condo & House Values, Robert Earl
Topics: Uncategorized |