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Many LGBT homeowners waited until this summer to sell their homes, hoping that improvement in the real estate market will translate into a higher selling price. But slight differences in pricing can sometimes make all the difference between a satisfying house sale and a listing that merely languishes on the market without any nibbles from buyers..
Follow these four pricing tips to ensure better results when selling a home this summer:.
Trust the Law of Averages.
Use data from recent listings and sales of comparable homes to determine the spread between what homeowners asked for their homes and what buyers were actually willing to pay. That’s helpful information because pricing a home too far above what buyers are paying can effectively price it out of the market. Those shopping for a home won’t bother to look at it if it is priced above their financial threshold, and they will buy elsewhere instead..
On the other hand, pricing too low can mean that a seller leaves money on the table or leaves too little “wiggle room” for negotiating with the buyer about such things as repair expenses. As a general rule, it is prudent to price a home about 3-5 percent above whatever price the seller is actually hoping to get..
Clearly Identify Motives and Goals.
Too many LGBT sellers fail to clarify their own goals before listing a home, and then when a purchase offer comes to them they find themselves perplexed about what to do. They don’t know whether to accept it, wait for a better offer, or make a counter offer. To avoid that kind of quandary it is important to fully understand financial and personal motives before listing the property..
Is the main objective to sell quickly in order to facilitate other plans such as a move to a new city to accept a lucrative job offer? Is it to avoid foreclosure or bankruptcy? In those situations pricing low and accepting lower offers may actually save more money in the long run by facilitating a fast sale. Maybe the goal is to cash out in order to buy a more expensive home, or to capture profits from equity put into the house by doing remodeling work. If that is the case, there may be a specific price point that needs to be met in order to achieve the desired result..
Ask these kinds of questions and then let the objective answers guide decisions regarding whether or not to sell now and how much to ask for the property. Otherwise important decisions might be made based on emotions – and emotional choices are usually not conducive to savvy financial management..
Monitor the Market and Stay Flexible.
But in volatile economic climates like the one the nation is in today it is important to remain agile and ready to respond to shifts in the market. Many sellers decide on a price, put the yard sign up, and then sit back and wait for a sale to happen. The more proactive sellers, however, monitor comparable sales every week and they also gather feedback from those who tour their home. Insist that the Realtor follow up after each viewing appointment, for example, to find out what the buyers thought. Sometimes buyer feedback can provide valuable insight into what is working or not working in terms of marketing the home..
Something as simple as the presence of too much clutter in the living room or a skittish dog that intimidates sellers might be standing in the way of a profitable sale. Maybe buyers are turned off by an outdated kitchen appliance that could easily and affordably be replaced, or the landscape needs tweaking with a good but inexpensive manicure and some fresh color in the flowerbeds..
Or it could be that the price is too high compared to other homes buyers have seen. In that case it might be time to drop the price a notch in order to remain competitive..
Time is Money.
Be sure to factor the cost of delays into the pricing. If a home fails to sell this summer, for example, the homeowner may wind up keeping it over winter as buyers hibernate. That can add considerable costs for heating, continued mortgage payments, and general maintenance..
If the additional delays will cost an extra $12,000, for example, then it might be smarter to just slash $5,000 from the asking price to help close a sale right now. The homeowner gets the desired result of selling the home promptly while potentially saving $7,000 in additional costs ($12,000 minus the $5,000 discount) that would be incurred by holding on to the property until 2011..
Stay informed, remain flexible, and be ready to act decisively to aggressively market a home in today’s lopsided buyer’s market. That will facilitate a sale – even in these tough economic times..
To find real estate professionals devoted to serving the LGBT community, visit www.GayRealEstate.com, or call toll free 1-888-420-MOVE (6683). The site is home to the largest online network of LGBT Realtors in the world..