Tips for Sellers in Risky Markets
- By:
- Catherine Brock | September 10, 2007
Experts say the real estate downturn hasn't hit the bottom yet. That puts even more pressure on sellers to make their homes attractive and affordable to buyers.
Some of the best-known creative minds in history have talked of risk-taking as an obligation, a necessity to a more fulfilling life. But unfortunately, the advice of Emerson, Edison, and Picasso won't be enough to convince a buyer to take a chance on buying your home.
PMI Mortgage Insurance Co.'s Summer 2007 U.S. Market Risk Index report provides a bleak outlook for the domestic housing market. It looks at the country's 50 largest metropolitan areas, ranking each on the probability that housing values will be lower in 2009. Among the bad news:
Certain markets in California, Florida, Nevada, and Arizona have the highest risk of future price declines.
Six of the top 10 riskiest metro markets are in California, and two are in Florida.
The Phoenix-Mesa-Scottsdale, Arizona area has a 64.6 percent chance of having lower housing values in two years.
There's no denying that selling your home under these uncertain conditions is difficult. Buyers are nervous-they don't want to buy a home just to see its value drop in a year or two. The most effective way to combat buyer reluctance is to be strategic about the marketing of your home. Here are some tips to maximize your home's exposure and desirability:
Use technology: Many buyers begin their home search with the Internet. Ask your agent how your home will be presented online. You'll want it listed everywhere possible, including on its own website that can be easily found under common search phrases. Use well-lit, flattering photos and virtual tours to show off the home's most appealing features.
Research your competition: Spend some time researching other local properties. Figure out how they're being marketed and how they measure up to your home. Then, brainstorm with your agent on upgrades, improvements, and marketing ideas that will differentiate your home from the rest.
Sweeten the deal: Offer to cover some of the closing costs of the transaction; you might sway buyers who are on the fence.
Depending on where you live, you might decide that now isn't the right time to sell. If you were considering the sale because of financial pressures, you might be better off doing a mortgage refinance now and riding out the market's volatility. Although mortgage rates have moved up from the historical lows of a few years ago, you can still get a relatively good rate if you have decent credit.
Whatever you decide to do, remember not to panic. Market conditions move in cycles, and things will stabilize…eventually. Even Newton might agree that what goes down must come up.
Some of the best-known creative minds in history have talked of risk-taking as an obligation, a necessity to a more fulfilling life. But unfortunately, the advice of Emerson, Edison, and Picasso won't be enough to convince a buyer to take a chance on buying your home.
PMI Mortgage Insurance Co.'s Summer 2007 U.S. Market Risk Index report provides a bleak outlook for the domestic housing market. It looks at the country's 50 largest metropolitan areas, ranking each on the probability that housing values will be lower in 2009. Among the bad news:
Certain markets in California, Florida, Nevada, and Arizona have the highest risk of future price declines.
Six of the top 10 riskiest metro markets are in California, and two are in Florida.
The Phoenix-Mesa-Scottsdale, Arizona area has a 64.6 percent chance of having lower housing values in two years.
Maximizing your home's salability
There's no denying that selling your home under these uncertain conditions is difficult. Buyers are nervous-they don't want to buy a home just to see its value drop in a year or two. The most effective way to combat buyer reluctance is to be strategic about the marketing of your home. Here are some tips to maximize your home's exposure and desirability:
Use technology: Many buyers begin their home search with the Internet. Ask your agent how your home will be presented online. You'll want it listed everywhere possible, including on its own website that can be easily found under common search phrases. Use well-lit, flattering photos and virtual tours to show off the home's most appealing features.
Research your competition: Spend some time researching other local properties. Figure out how they're being marketed and how they measure up to your home. Then, brainstorm with your agent on upgrades, improvements, and marketing ideas that will differentiate your home from the rest.
Sweeten the deal: Offer to cover some of the closing costs of the transaction; you might sway buyers who are on the fence.
Putting off the sale
Depending on where you live, you might decide that now isn't the right time to sell. If you were considering the sale because of financial pressures, you might be better off doing a mortgage refinance now and riding out the market's volatility. Although mortgage rates have moved up from the historical lows of a few years ago, you can still get a relatively good rate if you have decent credit.
Whatever you decide to do, remember not to panic. Market conditions move in cycles, and things will stabilize…eventually. Even Newton might agree that what goes down must come up.
5.90
