When Should You Drop Your Selling Price?

You want to get the best price for your home, naturally. You’ve put it up for sale, focused on things like curb appeal to make a good first impression, and done research for other prices in your location. But despite all of your efforts, what if your home has been sitting on the market and/or you have no showings scheduled? It may be time to evaluate your selling price.

When you initially list your house, it will be a new listing that may get lots of attention at first. But that can change quickly, and as the weeks go on, you might consider the price.

There are many reasons to lower your selling price:

There are fewer buyers looking at your home. If the house has been on the market and there have not been any interested buyers inquiring about your property, it may be time to reduce the price a bit. Many potential buyers may think that your home is overpriced a bit, and taking it down can bring in new buyers.

You have to sell because of a looming deadline. Maybe you’re moving to another state and need to sell before you leave. Consider lowering your asking price to get potential buyers interested.

You don’t have any offers coming in. Maybe you’ve given many tours of your home to potential buyers but no one had made you an offer. It’s possible that the only thing stopping them is the too-high price, so you may want to take it down.

You can’t afford any upgrades. If you were planning to do some improvements like painting, new carpet, etc. but now you simply can’t put out the money for these things, you may want to consider lowering the price. You want the price to be fair considering what the home may be lacking.

Your price is too high for the competition. If your home has been on the market for a month or so and you don’t have any potential buyers, it’s time to give the price a second thought. Staying in touch with the competition will ensure you get the best price for your property.

It’s understandable that you want to get a certain price for your home, but you must be realistic about the market and the condition of the house. It’s a good idea to keep in close contact with your agent throughout the entire process so that you know where the sale of your home stands.

How to Sell Your Home When the Market is Down

When the market is down, the easiest way to sell your house fast is to lower the price. But lowering your asking price isn't the only solution. You can also attract buyers by adding new features that enhance the value of your home.

Here are a few tips to sell your house at the best price:

Differentiate your home from your neighbors

You can attract buyer attention by differentiating your home from your neighbor's. For example, custom additions such as a new roof, landscaping, or high grade windows can make your home stand out from the rest. These features not only make your house more attractive but also enhance its value.

 

While adding new features, it’s best to opt for designs and colors that will impress most people. Any new feature should complement your home. For example, building a patio next to your outdoor swimming pool is a great idea.

However, resist the temptation to overspend. Of course, enhancing the appearance of your home may attract buyers, but it is not always easy to recover all the costs while you sell it. There is absolutely no example to prove that the new shingles on your roof will substantially increase the value of your home. If you're planning to invest a lot of money in improving the appearance of your home, do some research and add features that are more likely to recover their costs.

If you have recently added some interesting custom features, don't forget to include them in your home's listing. 

Clean the clutter

Make sure that your home is free of clutter when potential buyers come to see it. Clutter turns off people immediately. You can make your rooms look larger by removing some furniture. Also put away personal items and family photos. And if your budget permits, you should consider hiring a stager. Be willing to shell out a few thousand dollars if you are planning to rent modern furniture for showing your house.

Sweeten the deal

You can attract more buyers by sweetening the deal. You can, for example, offer to pay the buyer's closing costs. These deal sweeteners will help you to attract more buyer interest. You can also consider offering a transferable home warranty.

Improve curb appeal

Don't overlook the need to enhance your home's curb appeal. When a buyer takes a look at your house, the first thing they see is its external appearance. So make the exterior as attractive as possible. Apply a new coat of paint before listing your home for sale. You also need to keep your garden and lawn in good condition. Appearance means a lot in real estate.

Make sure that your home is ready to move in

Make sure that your plumbing and electrical fixtures and appliances are in working order. They should also comply with existing building codes. When potential buyers visit your home, they should get the impression that the home is ready to move in.

Price it right

Your home should be priced appropriately. You should consult a real estate agent to know what comparable homes in your area are selling for.

Your home doesn't have to be the least expensive home on the street. That said; it must still be reasonably priced.

 

The bottom line

It is not exactly easy to sell your house when the market is down. However, by adding a few interesting features and keeping your home in great shape, you can improve your chances of finding a buyer.

7 Habits Every Home Seller Should Have

Putting your home on the market and getting it sold for a decent price is not easy. In fact, selling a home can be quite stressful. However, you can reduce your stress levels by following these highly effective habits.

1. Be Realistic

Your neighbor probably sold their house for top dollar last month, but it doesn't matter now. You didn't sell your home when the market was at its peak. Right now, your only concern should be getting your home sold for a reasonable price and that won't be possible unless you are realistic.

When selling a home, don't expect to recover every cent you spent on it. It is not always possible. So be realistic about the value of your home, the quality of your neighborhood and current market conditions. There is hardly anything that you can do to improve the neighborhood or the market. Nonetheless, you can improve the way your home looks. Make it clean and repair the parts that need to be repaired.

2. Listen to suggestions and advice

You probably don’t have much experience in selling a home; however, your agent has. A good agent sells many homes a year so they should understand the process better than you. Listen to their advice. Of course, it is nearly impossible to do everything that they suggest. Nonetheless, listen to them and do whatever you can to present and market your home in the best possible way.

3. Be Available

You don't have to be physically present during showings. In fact, the presence of the home owner may make the buyer uncomfortable and force them to rush through the process. Nonetheless, your home should be easily accessible to buyers. You must be willing to vacate the premise whenever your agent asks you to so that potential buyers can view it. This improves your chances of selling it.

4. Be Smart

Knowledge is power, so gain as much information as you can about the home buying and selling process. Of course, you are not buying, but you should still be able to know what the buyers are going through. Also understand the real estate market. If you have doubts, ask your agent to clarify them.

5. Don’t let emotion cloud reason

All of us are emotionally attached to our home. We are also proud of it and expect it to be sold for a price that is reflective of our pride. However, market conditions and location often determine the price. If you don't get the price you are asking for, you should be willing to lower it.

6. Be Reasonable

While selling a home, price shouldn't be the only consideration. You must also take into account the buyer's eligibility for a loan. If buyers request for repairs, you should consider every aspect closely. Don't risk losing a potential buyer by refusing to repair a leaky faucet or something just as trivial. That doesn't mean that you have to give into every demand. Be reasonable. That's enough.

7. Ask Questions

During the selling process you may hear many terms that you don't normally use on a regular basis. If you don't understand anything, don't hesitate to ask for clarification. 

These seven habits will not only reduce your stress levels but also increase your chances of getting a good price for your home.

To assist you in pricing your home to sell, you can get a free home valuation report from Neighborhood IQ and find out what your home is really worth.

Thinking about refinancing? You can find lenders that can help you with a refinance on your home loan. Let The Home Loan Advisor help you today!

Renting Your Home vs. Selling

For years, you wanted to sell your home. You have even purchased a new home already. Perhaps you’ve had difficulty selling the property for various reasons. Or, maybe you have simply changed your mind about selling. Whatever the situation, you have ultimately decided not to sell your house. What will you do instead? You can rent it!

Renting your home ensures that you keep your home as an investment. You can use the money from the rent to put towards retirement, college tuition, or home improvements for your current home. It is a smart financial move for your starter home, and time is on your side to turn a possible lemon into lemonade.

Why rent your home?

Renting your house can be a good financial investment for many reasons, including:

·         The value of your home will go up, especially over the long term.

·         You control your investment.

·         There are tax breaks when you own your home and also when you sell it.

·         You can keep your investment in good condition.

·         You can develop landlord skills.

Advantages of renting your home

You can keep your first starter home and let tenants pay off the mortgage. Meanwhile, its value will increase. This is when you have a great investment. Other advantages to renting your home vs. selling it include:

·         You can get tax breaks from mortgage interest, landlord costs, and property taxes by deducting them at tax time.

·         You can accumulate equity. You can do this in two ways: Paying off your investment from rents, and the value of real estate goes up along with your investment.

·         You can save money for retirement, college, vacations, or home improvements.

Disadvantages of renting your home

Unfortunately, there is a flip side to turning your home into a rental. Before you make the decision to become a landlord of your rental property, you should consider the following:

·         Real estate is a long-term investment. It will take you at least five years to build a good level of equity. In order to reap the benefits you must be patient and stick with it.

·         Not everyone is cut out to be a landlord.

·         You might decide to move in a few years and not have time to build equity.

Selling after your home has been a rental

If you decide to sell your house after you have rented it, you should know that usually you can sell your home as a primary residence if you live in it for two of the last five years. This rule is tailored for those who have a hard time selling and have to wait for the market to change.

Whenever you do decide to sell, you will definitely need to know the value of your home so that it can be priced accordingly. In fact, you should know your home's value while you're renting it as well. Find out the worth of your home with a free home valuation report from Neighborhood IQ!  

Why Selling Rental Property is a Good Idea

The New York Times ran an interesting feature in March. The writer asked if rental property was really as safe and profitable as one assumed it was. She mentioned the story of a retired couple who had just invested in some property and mentioned the risks linked with their investment. Problematic tenants, costly repairs, and a long period of inoccupancy are some of the problems landlords face with rental property.

Renting is a profitable enterprise if you stick to your investment property for more than a few years. Inflation eats away your monthly mortgages while rents keep on rising. Initially, it will be very difficult to find tenants who are willing to pay rent that is more than your monthly mortgage – but down the line it will become easier. There are more than a few people who have been earning a large portion of their income by renting out properties.

There are many upsides to renting your property. The most attractive of them is having an asset. You are building equity that is being financed by someone. At the same time there are many downsides and risks to owning a rental property. The most common of these are:

(1) Problematic tenants

As a landlord, you will have to prepare a strategy to deal with tenants who do not pay rent on time. You may also have to be prepared to confront those who may make changes in your house without your knowledge.

(2) Emergency repairs

You are responsible for emergency repairs. You are in trouble unless you have a sound plan on how to deal with these repairs.

(3) Natural disasters

You will have to ask yourself if you can afford to rebuild your house following a natural disaster such as hurricane Sandy. Although housing insurance will cover a bulk of the costs, you will still end up spending more than you can imagine.

(4) Taxes

More rent income means more taxes. A large part of the monthly income that you get now will be going into your taxes

(5) Housing market and inoccupancy

Are you prepared to pay monthly mortgages for your investment property if the housing market starts marching south? What will you do if you fail to find a new tenant?

Unless you are prepared to deal with the above mentioned risks, it is perhaps a better idea to sell your rental property and invest the cash in more productive endeavors such as education and skill-development.

It is hard to sell an investment property, but it offers high profits. You can get an online value report on how much your rental property is worth. There are many websites that offer free home value reports, such asNeighborhood IQ. Taking that report as a base, you can put your property on sale. The government charges a higher tax on the sale of rental property. There is a way to avoid this if you want to stay in real estate after pocketing in the profits from selling your old property and investing the rest of the money into the new property.