Today, there are really only 3 things that can get a home sold: Price, Condition & Financing. I believe these have always been important, but never more than today, in a buyer’s market with uncertain economic conditions. After the last few years, every consumer wants to know they are getting a reasonable deal, that they a making a stable investment, that they can get out of the investment if they need to. The amount of uncertainty and the commitment to security are both very important factors in the real estate market today.
Price: Buyers today will not overpay. Appraisal regulations continue to shift, so if there is financing involved, it is even more difficult to “beat the market.” In truth, however, all buyers today are requiring a “fair” price and are refusing to pay above market value. Be honest: aren’t you?
Condition: People today are busy. People today are overwhelmed with managing their own lives, their own communications, the stresses in everyone’s lives over job and family. Unless they are professional investors, we find few buyers willing to take on a “project” when buying a home. People expect the work to be done, they expect the home to be in move-in condition. Many believe that a carpet allowance or update allowance is attractive to buyers so they can choose their own, but our experience shows us that buyers today don’t want to spend their time and energy that way. Another great point for discussion, is “average” condition vs. pricing: do the homes in your neighborhood normally have granite countertops so that is considered average condition? Make sure your professional Realtor helps you understand the condition required of your home to make sure it meets the market expectations.
Financing: The world of mortgage lending has become complicated and is ever changing. Appraisal rules are difficult and shifting, credit score requirements are tight and lenders do not give file approval until very specific conditions are met. If you can offer assistance to your buyer by paying closing costs, carrying a 2nd lien yourself, or any other offer that makes the financing simpler and more buyer friendly – your home will sell faster and for more money! That is today’s market.
Homes are selling today and every day. Some homes receive multiple offers today and every day. Make sure you are doing everything you can to be sure you are one of those! It’s not luck, it’s planning and following a successful strategy that addresses all three important facts today: PRICE, CONDITION, FINANCING.