If life changes or simply a feeling of impatience has you wanting to speed up your home selling process as much as possible, there are a few tools to help you achieve this. One of the easiest ways to do this is with the price, which you can change on a whim. Lowballing the price in order to get a quick sale could end up with you accepting disappointing offers. It is best to figure out how to sell your home quickly without the need for any major compromises. Below, we’ll give you a few tips to help you in this process.
1. Check out what a cash buyer would be willing to pay for the home.
Cash home buyers overall tend to be less of a risk for the seller, which can make for a much smoother transaction with fewer obstacles in the way of closing. Instead of waiting for as long as 45 days for a loan to process, paying in cash can get things processed in as few as two weeks. This method of sale also doesn’t require an appraisal, even though cash house buyers will still usually ask for a standard home inspection.
Direct buyers will usually offer a discounted price as a point in their negotiations, though the convenience of the speed of the sale might be more attractive than the extra money itself. This is especially true if you want to sell the home as-is. If it needs any repairs, the seller won’t have to take responsibility for it.
2. Look at the buying conditions as well as the fair market value of the home to decide on a good price.
You shouldn’t just throw guesses out there on what your home is worth and what someone might be willing to pay. You should research the local real estate market and even look at national housing trends to see what’s what. Keep an eye on the following things:
- Inventory levels. Inventory is indicated by months of supply, which shows how long it could take to sell every home that is currently up for sale. Areas that have more than six months of supply are thought to be a buyer’s market because all of those homes give buyers more choices, which raises the competition between sellers, urging them to lower the price, often well below market value if they want to get it sold quickly.
- Home price movement. Real estate is an asset that appreciates over time, and the value of a home will usually grow over time. Yearly home price gains are crucial to pay attention to. If homes gain value at a speed of two or three percent every year, that is considered a good market. Slow home price gains with annual lowering of these gains will show you have to price the home in a more aggressive way for it to sell.
- Mortgage rates. Pay attention to national mortgage rates. The lower the interest rates, the more eager a buyer may be to purchase the home. On the other hand, higher rates can make buyers move more quickly to avoid paying anything higher. If you hear anything about interest rates rising, you could get more attractive offers.
- Comparable homes. Completing a comparable market analysis will show homes in your area that are like yours when it comes to age, square footage, upgrades and general conditions. You might note that your neighbor with the same floor plan as you was able to sell their home for a higher amount than your agent says is fair market value. Consider what’s different, such as recent renovations, its age and other factors. These need to be considered when deciding how to price the home in the best range, whether that’s below, above or in line with the other homes nearby.
3. Try to start a bidding war.
A lot of sellers feel anxious when it comes to underpricing their homes, but this can sometimes benefit the seller. An artificially low price on a home can encourage more people to make offers, which can generate a bidding war ultimately ending in a profitable and swift sale. It is usually suggested that sellers set a list price somewhere between five and 10 percent below the expected market value. Though this can leave sellers feeling as if they are just leaving money on the table, this is actually a smart strategy to receive better offers.
Though there are no guarantees, the seller can usually get back the amount of money that they originally shaved off of the price. In an area with a strong market, upgraded and well-maintained homes are good options for fair market value pricing. These types of homes will sell quickly, usually in only a week or two.
Furthermore, when you price your home, you’ll need to think about the cost of any repairs that are needed. A good place to begin bidding is the value of the home minus the cost of any needed repairs. From there, you can take an additional five to 10 percent off of that number if you want to price the home below the market value to attract more bidders.
4. Work with your real estate agent to create an aggressive price reduction strategy.
It is entirely possible that even if you’ve completed the necessary market research and found a good price strategy, your home could end up staying on the market for more time than originally anticipated. At the end of the day, the right price depends on what the buyer is willing to pay for the home in its location, current condition and according to the real estate climate.
Many sellers tend to think their homes are worth more than they are since they have fond memories there, and they might find it hard to lower the price just because it will almost guarantee a swift offer. Because of this, when you decide to price a home low to get a fast sale, you’ll need a fallback plan. A good contingency plan is to have a price reduction strategy you are agreeable to beforehand.
Usually, it’s good to test the home at the higher price that you aren’t thrilled to lower, and after two weeks, lower the price if it isn’t performing the way you’d like. It’s important to be honest with yourself and take your cues from the market if the home isn’t drawing in offers. Even so, you should not use price reduction as a part of the advertising for the home, as this can scare away anyone who is thinking about buying. It sends the message that something is wrong with your home.
It is instead a better idea to have the agent share good quality pictures of the home as well as its neighborhood and share them online, as online marketing tends to be what sells a home. Many homeowners say they find a property they eventually purchased while browsing online.
Another strategy could be to talk to potential buyers that looked at the home and expressed interest but ultimately did not place an offer. Tell them there could be a reduction in price on its way and see if that would entice them to make an offer before you move forward with adjusting the price. After the price is lowered, listing sites will let potential buyers know, which could attract offers as well.
5. Avoid overpricing.
If you are tempted to price the home as high as you possibly can, that’s not in your best interest. Overpricing the home can cause it to sit on the market for much longer, and the longer the home is sitting on the market, the better leverage a buyer has to make a lower offer. Beyond that, you’ll also be waiting around long before you can close on the sale of your home and then move on to buying a new home or whatever is coming next in your plan.
If you need to quickly sell your home, it is always a good idea to keep the pricing measured. If you are pricing the home below the market value, that is likely to attract buyers quickly. Sometimes, you may even see offers roll in within a few hours. This is especially true if your home meets the criteria of an attractive home: in good condition, in a good neighborhood with minimal to no repairs needing to be made.
What comes next?
It is important to ensure you have a quality agent who knows what they are doing. After getting these offers, an agent needs to act quickly to get the closing in order. It is a good idea to take a strategic pricing approach and do your research before accepting or declining any offers, but you’ll need a good agent to help you through any obstacles on the horizon. Partnering up with a reputable real estate agent that knows the importance of closing quickly is key.
– In Conclusion –
There are many reasons a person might want to sell their home quickly: moving out of state for a job and wanting to use the money to buy another home are two of the common reasons, but those are not all. Whatever reason you have for wanting to sell quickly, pricing the home properly is a must. The tips in this article can serve as a guideline to help you determine the price that is going to draw in the best offers for you to consider, and always be sure you are working with a qualified real estate professional to see the whole thing through smoothly.
