A Buyer's Market
A Buyer's Market
Chad Lund (Real Estate Agent) gives expert video advice on: What's biggest mistake I can make when selling my home in a sluggish market?; Can I make a profit on my home in a slow market?; What is a 'slow housing market'? and more...
What's biggest mistake I can make when selling my home in a sluggish market?
The biggest mistake anybody right now can make in a sluggish market is overpricing. Typically everyone is aware of the real estate phrase 'location location location' but right now you need to add 'pricing pricing pricing'. It's imperative right now to price within the market. Overpricing right now, all it's going to do is turn away buyers and have your home linger on the market for months, months on end.
Can I make a profit on my home in a slow market?
Making a profit on your home in a slow market is very possible, especially if you purchased it in the past, in the last 2+ years, there's money to be made. In the last couple of years, the market's pretty much settled, so in that case it's more of a break-even point, but prior to buying the last two years, you're in great shape to make a profit right now. Again, pricing is key.
What is a 'slow housing market'?
A "slow housing market" is really when a home has been on the market for a couple of weeks. It's not getting offers. In a stronger market, we were seeing deals going into escrow in the first five days. The slower market is taking 30, 60, 90 days. That's what we are seeing right now.
Should I lowball my price when selling my home in a slow market?
Low-balling your house in a slow market is not the best situation. Lets say you do lowball it and you don't get any offers, you're stuck at that price. What I mentioned before is really price it within the market. If you're not getting activity, if you're not getting offers at that point, then reduce it. You can then find fair market value, but by really low-balling it you might get yourself in a bind if people aren't offering that lower price.
What kind of real estate agent can help me sell in a slow market?
The type of real estate agent you want in a slower market is one that's an area expert, one that sells exclusively in that neighborhood. They know the trends. They know what's selling next door and what's selling around the block. They have a sense if the buyers are there, if they're lowballing, if they're sensitive to the interest rate. That local market expert really has a good grip on what's going on in that neighborhood and it's going to benefit your sale 100%.
What if my real estate agent brings me a buyer?
If your real estate agent brings you a buyer as a seller I would be real apprehensive. Just because there's one buyer in front of you, doesn't mean that's the only buyer. By putting your house to market, that's going to draw more buyers and really find a fair market value. I think you're doing yourself a disservice of just looking at one buyer's offer. Really take that house to the market and bring in all buyers to really see what the fair market value is. That one buyer's not going to go away I'm sure. Why not take it to market?
What is a 'dual agency' real estate transaction?
A real estate agent representing both sides is called a dual agency, and it's a real tough position to be in because at the end of the day, Who are you representing? You've got a seller's interest, you've got a buyer's interest. If there's a pending point coming out, and no one can come to terms on it, who are you really representing? It gets into a real sticky situation; therefore, it could be a problem.