Real Estate Buyers Get Tough

Real Estate Buyers Get Tough

Let's talk about what it takes to sell real estate during a financial meltdown. First and foremost buyers are king. There aren't many of them running loose and you must work like a tiger to snare one. Every day I hear someone say, "Yes, I've read about the country's credit problems, but I have a burning need to sell my house!" Sorry, but you are just one among tens of thousands in the same leaky boat. Take heart because I am going to tell you exactly how to sell your home in today's upside down real estate market - sort of. This is a buyers market and they can be demanding as they like and you must be realistic about dealing with them. You must identify how saturated the market is for homes of your type. Are there several similar homes for sale just down the street? How long are those homes on the market before buyers are are found? What have homes in your neighborhood sold for? In most areas home prices continue trending down, so chances are you must set your price a bit lower than the most recent sales. A good rule to remember is that anything sells if the price is right. Should you list your home for sale with a real estate broker or offer it for sale by owner? That decision could rest on a couple of things. Do you have plenty of equity in the home? 6% will come right off the top of the sale price for the broker's commission. Will your equity cover that and all other selling expenses? If you choose to go FSBO (for sale by owner) you shouldn't believe your going to pocket that extra 6%. You need to spend a good portion of that on home fix-up and marketing. Let me explain how I sell my homes. I list them with a discount broker. Many of these "flat fee" broker's charge from $200 to $500 to list your property on the local Multiple Listing Service. The truth is that most homes are sold from listing on the MLS. That's where every real estate agent in your area looks for homes to show their buyers. In most U.S. counties the typical 6% real estate commission is split between the buying and selling brokers. Each get 3% of the home's selling price. When you list with a flat fee broker you pay that broker only an agreed upon amount in advance. That will allow you to entice many more agents into showing your home by offering them a 4% commission. Experienced agents scan the MLS looking for that kind of an extra bonus. If they have a potential buyer for your type of home you can be sure yours will be the first one shown to the agent's prospective buyer. Listing with a discount broker this way gets your home shown and leaves you with a few extra thousands of dollars. You can use that money to help pay down the buyer's interest or closing costs. That gives you some negotiating room with tough buyers. The most powerful way to sell a property quickly in a down market is to offer help with the down payment or financing. Not everyone can do that, but if you truly must sell quickly it is something you should consider. In this market home buyer's and their agents know they have most of the power. Anything you can throw in as an extra could mean the difference between making or not making a deal.