For most of us, selling real estate is the last thing that comes to mind when the market is moribund. Even for those who know how to play their cards right, it is considered wishful thinking to get the best deal from potential home buyers. The price levels in the real estate market, especially for detached family units, are still low. In a recent market report released by Merrill Lynch, an estimated 2.2 million units of condos and single homes are now on sale. About 1 million more units are sold under normal conditions in the real estate market.
If you are planning to sell your property, it is important that you carefully consider your asking price. Real estate experts consider the price the most crucial element in the selling process. You must be very aggressive as far as pricing is concerned, and you must be able to give incentives to get the attention of many buyers.
In general terms, these experts raise a valid point. However, the task of selling is easier said than done. Under prevailing conditions in the market, you have to think outside of the box and consider other intangibles to be able to move forward. Suffice it to say selling properties in an over-stocked market is possible, and you increase your chances of clinching a good deal if you consider some of the best practices for effective real estate selling.
Choose the Right Broker
You need all the help you can get to make a good deal under the present condition in the market. One of your major concerns is getting the services of a professional and competent broker. It is important for you to be able to get lead information on real estate agents who are actively involved in listing and selling in your locality. A good and reliable broker must give you a fairly good presentation to assess the value of your property as well as the relevant figures about the proposed sale and the game plan in marketing the property.
Know and Understand the Market Conditions
One of your most important responsibilities as a seller is to keep abreast of the current trends and indicators in the real estate market. You need to have a keen understanding of leading, concurrent and lagging indicators to get the proper timing in selling your real estate property. You must also be able to get the feel of variables that greatly impact making a good deal in a predominantly depressed market. For instance, you may sweeten the deal by adding incentives for specific upgrades or repairs at the buyer’s option. Your real estate broker must also be able to give you updated details of current sales of real estate properties in your area and other properties similar to the one you are planning to sell.
Be Flexible and Use Figures to Your Advantage
You can add incentives to whet the buyer’s interest and seal the deal effectively. You can resolve issues involving the price of the real estate property by offering to share part of the closing cost. This can be a good proposition if the buyer insists on a price reduction, which is very likely under a buyer’s market. Most mortgage plans allow about 3 to 6% of the closing cost as seller contribution.
Sometimes, you must go the extra mile just to clinch the sale. Simple accommodation on the amount of earnest deposit can go a long way in making the buyer agree to your terms of the sale. This is purely a judgment call, and if you have a prospective buyer who has a pre-approved loan and seems to exhibit a strong interest in the real estate property, then it might be wise for you to reduce the deposit to bring in the sale.