With the big selling boom of 2005 long gone, home sellers are now returning to a much more traditional market. Some may consider this a “soft” market, but in reality, it’s just a return to normal conditions after a year that blew all expectations and records out of the water in terms of selling conditions nationwide.
Still, many people trying to sell their homes are growing panicky as they see their properties sitting on the market longer than expected. There are several concerns when trying to sell your house in a soft market:
- Your house might take too long to sell, leaving you living out of a rental property or incurring debt while paying two different mortgages.
- The value of your house could decrease.
- The net profit on your sale could go down due to increased commission fees for realtors.
Each of these concerns is valid. However, there are steps you can take to sell your home, even in a soft market.
Key Strategies for Selling Your Home in a Soft Market
Selling a house or piece of property was so easy in 2005 that individuals often handled most of their own sales, and the prices they could command were usually met. Some realtors even joked that in such a hot market, “even a monkey could make the sale.” A soft market, however, is much different. It may be time to reconsider saving on commission fees and use the services of a professional agent. Consider the following:
- Agents have the contacts, expertise, and resources necessary to complete your sale. Most of the time, they will secure the price you expect for your home. While a soft market may not be ideal for a seller, it can be very useful when looking for a good agent. The days of easy money are gone, and many agents who joined the business for a quick fortune will likely leave. This leaves behind the experienced, top-tier agents who are committed to customer service and adept at navigating downturns.
- Agents can provide valuable tips to increase the level of serious attention your home receives. While there are always basic guidelines to follow (outlined below), agents can identify unique circumstances that apply specifically to your property.
Preparing Your Home for Showing
The best strategy for selling for maximum value in a soft market is to ensure your house looks inviting enough for someone to want to live in. All the basic rules apply here:
- Your house should be in good repair, and nothing should give off unpleasant smells or sounds that might concern potential buyers.
- Always ensure the house is clean and tidy before any showings.
- Remove excess furniture. If you still want it, put it in storage. If you don’t, sell it or donate it. Overcrowded rooms will make the space seem less spacious.
- Ensure your exterior looks as good as the interior. Cut the grass, prune trees, and weed the gardens. You want to create the impression of beauty with minimal effort.
Sales Strategies to Consider
If your house isn’t selling, it may be time to consider strategies to make the deal more appealing to potential buyers:
- Negotiate the price. This usually means lowering the asking price for your home. However, depending on your neighborhood, increasing the price might actually attract more buyers. A higher price can bump your house into a different bracket of potential buyers. As in many cases, perception is key—if people think a house is worth a certain amount, they’re more likely to believe it.
- Offer to cover some of the sale’s costs. The final price isn’t the only cost of buying a house. Buyers might take your property more seriously if you offer to cover closing costs or other homeowner fees.
- Consider options other than a straight sale. Sometimes, buyers need more time—both emotionally and financially—to prepare for a home purchase. In these cases, you can offer alternatives like a lease option, allowing buyers to lease the house with the option to purchase at a later date.
Lastly, consider going without a realtor altogether. Subtract what you would have paid in commission from the asking price, and a 5% decrease might make the sale happen. Most importantly, don’t panic too soon. Hot seller’s markets are rare and don’t happen very often. If you can afford to be patient, you’ll eventually get what you’re asking for.
