By now it is common knowledge that the home sellers market in Kitsap County and around the nation is tough. Pick up any newspaper and you can't miss the variety of articles bemoaning the loss of value for homeowners.
So, what do you do if you absolutely must sell your home? Imagine your employer offers a pay raise if you will move to another state. The money sounds good, your spouse may be willing, yet everywhere you look, you see information stating how hard it is to sell a home right now.
Difficult, yes; impossible, no! There arehomes selling in Bremerton, Silverdale, Poulsbo and every other corner of Kitsap County. Each and every month, in this difficult market, many homes change ownership. And they are not always the cheapest house on the market. Below you will find a list of 5 tips for selling a home in a Buyer's Market ,gathered from an informal poll around our office about how we would sell our own homes if we needed to, based on the fact that we spend every workday in the Real Estate business. We have a birds-eye view of what works and what doesn't.
This is not the usual mow-the-lawn, plant-some-flowers, paint-the-rooms type of list. This list is meant to make your house stand out from the crowd.
Have Your Own Open House
Where is it written that only a real estate agent can do an open house? Have an open house of your own and call it a block party! Really!
All of your neighbors and all of your friends have friends of their own. When you add up all the friends of friends, it totals hundreds of people. You need to let everybody you know or come in contact with that you want to sell your home. This is a great way to get some exposure for your property.
Spruce up your house, print up some flyers (or ask your agent to get a batch for you) and invite everybody from your neighborhood over for burgers and pop. Pass out the flyers freely. Let them wander through the house and tour the property. Let them ask questions and hang out for a while. If they like your house (remember, they probably live in one similar to yours, so they'll like it), they just might invite one of their friends to come live in the neighborhood.
Selling is a numbers game. The more people who know what you have to sell, the higher the chance you will find a buyer.
Call a Mortgage Professional (a good one can help you sell)
No, this isn't where we tell you to call us! The reason to call a mortgage professional is simple. You need to know if there is any special financing available for the geographic area in which you house resides. You might be surprised what you learn.
Here's an example. In Bremerton there is a little known loan program available for certain neighborhoods. The funds come from the Community Reinvestment Act of 1977. Only one of the local banks handles these loans and only one local Mortgage Brokerage (that would be us) is signed up to market them. This loan program has low, fixed interest rates, flexible credit requirements, no mortgage insurance and low down payment requirements. Yet very few Real Estate Agents know it exists and even fewer consumers are aware of it!
Also, with the high number of Military families here, you need to know about VA Mortgage requirements and FHA home loans. A good mortgage professional can give you all the details concerning requirements. The more you know about what a buyer will be faced with, the better you can align your marketing to attract the attention of as many buyers as possible.
Remember, you are selling! It is not a spectator sport! The more active you are promoting your house, the more people will hear about it, and the better your chance of selling.
Selling is a numbers game. If you have more financing options than the house down the street, your house will appeal to more potential buyers.
Give Something Away (how about a boat, a lawnmower or a vacation?)
Why not? If you plan to do this from the start, you can work the cost right into the price. You lose nothing. Do anything you can think of to make your home stand out from the crowd.
No matter when you sell your home, you will have other properties competing for the buyers. Imagine that just when you decide to sell, 15 other similar properties happen to be also for sale. Buyers are going to want to see all of the 16 properties to compare which one is the best deal for them. That's perfectly normal buyer behavior. You need to do something to make your house different from the other 15 homes. So, give something away! Make purchasing your home a better deal than the others.
Selling is a numbers game. The more people who take a second look at your listing because it is different from all the rest, the better chance you have of selling quickly for the price you need.
Get High Quality Photos Taken of Your Home
Professional photographs cost a little extra money and are worth every penny of the investment. Ask your agent to arrange for a professional photographer to take a series of attractive photographs of your property.
If you spend a little time looking through the houses available on the Multiple Listing Service (almost every Real Estate Website will have access to these listings), you will notice that a high percentage of the listing look very similar. Many of the photos will be under or over-exposed, some will be tilted, others will be off-center. In short, the photos won't jump out and grab anybody's attention.
You, on the other hand want to grab attention! Professional pictures will do just that. A good photographer will make your home look even better than you would believe. Once again, this is a way to make your property stand out from the dozens (or hundreds) of other homes for sale that are similar to yours.
According to the National Association of Realtors, over 80% of home shoppers turn to the Internet to gather information about available properties. Often the pictures on the Multiple Listing Service are the first chance you have to make an impression. You don't want to waste the opportunity!
Your new collection of attractive photographs can be used other places as well. Why not use them on your flyers and websites?
Selling is a numbers game. If your pictures jump out at viewers because they are so much better than your competition's pictures, you have additional chances to get noticed by a home buyer.
Request a Broker's Open House
You've never heard of a Broker's Open? Don't feel bad, your competition hasn't either. A Broker's Open House is a semi-private open house that is only advertised to Real Estate Agents in your area. Normally a group of Agent will carpool on a scheduled day to visit a small number of currently listed properties. Your agent will know exactly what this is.
It is pretty well-known in Realtor circles that statistics on homes selling because of a Public Open House are very low. It's not bad to have an open house, just don't expect much from it. The reason many Agents will agree to an open house is simply because sellers expect them to, not because they work very well.
A Broker's Open, on the other hand, will attract the attention of a multitude of professionals in your area who have access to BUYERS! Real Estate Agents often go on the Broker's Tour (another name for it), because they are actively shopping for a homethat fits a client's needs. These are not "Looky Lou" visitors. Agents know a good buy from an average buy. They can cover a lot of territory in a short period of time while gathering accurate information. Agents have no interest in wasting your time, they won't stand and chat for an hour. They will get in, get out and head back to their office to contact the buyers they are representing.
Remember, this is a numbers game.
At a Public Open House, each visitor represents one person; themselves. At a Broker's Open House, each visitor may very well have multiple clientssearching for homes. At a Public Open House each visitor may be in the market right now. At a Brokers Open, each visitor has clients in the market right now! Play the numbers. Spend your time with the group that is more likely to produce results.
One Final Thought (or maybe two)
This is a worrisome market. There is bad news on every corner. If you are in the position where you need to sell your home, regardless of the current market condition, all is not doom and gloom. There are things you and your Agent can do to greatly increase the chance of getting your property sold.
It is very difficult to think creatively when we are worried or anxious. But selling a home in a tough market requires some creative action. This list is meant to get you thinking about slightly unusual or unique ways to get as much attention for your property as possible. It's meant to shake you up a little bit. It's meant to give you a dose of enthusiasm that there just might be some things you can do to affect your financial future. Don't rely entirely on someone else to handle something this important.
Most importantly, don't expect to be able to sit back while your Agent brings you a long line of people just begging to buy your house. It is not going to happen. Buyers are in the driver's seat right now, and they know it! You must be actively involved in the sale of your home! You must take the "bull by the horns" and grab the attention of the buyers. Your Agent will be doing a long list of things to get your property sold. They can't do everything! There are not enough hours in the day for one person to do everything.
It's important to think of your Agent as your team member, not "the hired help". This is not a situation when you hire someone to complete one task for a fee. This is a relationship more like a Team Captain (the Agent) and Team Members (you and your family). Teams accomplish incredible things when they work together!
In closing, consider this: If you do exactly the same thing your competitors are doing, you will get the same results your competitors are getting. Ask you Agent for current market statistics and you can predict those results. It will probably take months to get your house sold. And, each month will whittle away at your home's value.
Do something different! Get different results!
Some good ideas there. One of our agents had an open house this weeknd and got 30, yes 30 people come through. The secret to their success? They sent out writtten invitations to the neighborhood, rang some doorbells and made some phone calls. That in addition to the traditional advertising did it. Good luck to you. Happy Selling! Veronica
All excellent tips. I especially appreciate the professional photo tip. As a home stager, I know the value of great photos for each listing. Since so many buyers shop online first, your photos need to grab their attention, in a good way! Home staging can ensure the subject of the photos is worthy of the photograph!
Thanks Veronica.
30 is incredible (and testament to a great agent). It's easy to forget how many people our neighbors know. Why not invite a friend to move into the house that's for sale?
Thanks for the feedback Roberta. A prowl through the MLS will convince you every time of the need for great photos.
Great tips for homeowners! You are correct...they sellers that are willing to work with their agents as a team member versus hired help get the job done quicker...easier and for much more $$$$$!!! Thats the goal!
AnnMarie, thanks for visiting. Collaboration between the seller and the Agent can be highly effective. As a team, the theory of "Divide and Conquer" can be implemented with great success.
Olympic - Great post overall! I think all are great ideas, but the first one. I think that people are hiring Realtors to get their house sold, it should be stress and worry free for them. Also, it could create an illusion for sellers, and they might turn FSBO, which we all know doesn't work well in this market. I won't beat a dead horse, but you get my point :) I do like the give away, and the premium photos a lot though!
Stan Barsch
Thanks for a great post.
You have given such wonderful points esp about being part of a team. Nothing beats having a seller who is cooperative and have a very realistic view of what their house is worth.
We do all this and more,....you forgot the most important thing...don't tell your agent how to price it...make sure that your agent didn't "buy" your listing...you have to be the shiniest penny in your category...price,location, size, condition or all the opens, flowers, etc. are for naught.
Stanley thanks for the feedback. I didn't think about the FSBO angle, but of course that risk is always present.
The idea behind all these ideas is to get sellers involved in the selling process with realistic expectations of their Agent. Many of the Agents who come through our offices are very, very hard-working professionals. Yet, clients will voice their dissatisfaction when the sale takes a long time. The real reason for the complaints?...Unrealistic expectations.
There are so many things a seller can to do enhance the Agent's activities.
Also we wanted to offer a viewpoint that was opposite of the doom and gloom so prevalent in the media right now. And to remind readers that each of us knows hundreds of people. This huge pool of aquaintances is often overlooked by sellers when they are selling a home.
Thank you for adding to the conversation. Maybe we should add a sub-title ... "How to with your agent for maximum results"
--Ollie
Evelyn B. - Thank you (with a tip of the hat to you) :)
Sally and David. Thanks for visiting.
This originally started as "7 Tips". By the time the first 5 were written, the article was getting lengthy and 3 additional ideas had been added to the list. So, it was cut off at 5. (I guess we have some wordy people in our office!)
The pricing issue is a huge factor! Maybe that could be a future post.
These are all good points but the one thing that I feel is also important today preparing the home for sale. I have seen staging work wonders in homes in all price ranges. Clutter adds stress. The house needs to be decluttered and staged.
Hi Ollie, the only thing mentioned that concerned me a little is the first point. If a seller isn't careful they can give away information to potential buyers that could hurt their possibilities of either selling the home or they can weaken their position when it comes to negotiating the best price.
This is the same reason agents ask their sellers to not be present when a realtor brings their client through the home for a showing.
Without realizing it, and thinking they are being helpful, they can say something that completely turns off a potential buyer. It can be something small that most people could care less about but if told to the wrong person can turn people totally off.
Also, inevitably most people will ask right out of the gate, why they are selling. This can give a potential buyer way more information than they should have as to seller motivation (re- desperation) to sell, making it more difficult sometimes to get the best price for them.
All in all though, a motivated and participating seller is a blessing to the process of getting their house sold.
All are good points. I would also add staging too. Before we heard of professional stager's' we would ask sellers to leave lights on, soft music, and something scented. Doing these things along with a professional stager's opinion is a winning combination.
Kathy A, I understand what you are saying but the first suggestion was to have a block party with the neighbors so they can tell their friends about the house for sale. None of the neighbors is likely to buy the house. (Unless they are renters, of course)
Teresa H, thanks. Staging has been mentioned several times. Maybe I should add it.
Great points. Brokers opens are especially effective, both holding them and also attending other opens in the area; getting in front of agents and saying, "by the way, I have a listing in xx that may work for someone you know". This has gotten me many showings.
Lisa, great point. I didn't think of the networking opportunities at a Broker's Open.
Pricing your home to sell is probably the single most important thing you can do to get it sold quickly.
Great article....my husband and I sold our first house by holding an open house ourselves. It was listed with an agent at the time and he said if we wanted an open house we had to do it ourselves (ouch) so we did and found a buyer for it.
I am holding an open house this weekend for a condo that I have listed and it has been months since my last one. Wish me luck!
Jim L,
LOL, care to expand on that? :)
Terrie L,
Wishing you the best of luck!
That's an interesting anecdote. I'll bet you never forget, and you are a better Agent for having met the one you had! (ouch is right!)
Great ideas in this post! I once had a listing that was in my neighborhood on a lake. For the open house, I turned it into a party, invited everyone in the neighborhood and set up refreshments on the back deck and dock overlooking the lake. It was great fun! The weather cooperated, I got a tremendous response, and the neighbors thought I was a great agent because it was something a little unique. The visitors to the open house also got to see how friendly many of the local residents were.
Awesome post! I really like the team work point. Sellers often don't realize how much selling power that they have just by sharing with friends and family. This past winter we sold a listing when the next door neighbor dropped by an open house and then came back with his friends. They wrote an offer the next day.
There is another listing in the community that I have a listing. I think it would be a great idea to join together to get our listings sold. A block party of sorts would be great.
Interesting post. We do have to work harder to get our listings sold. It's not one thing but all the things we do. Creative and a good read!
Great Ideas, Thanks I will pass them on to the Realtors I work with.
Very good tips, and sure to impress the seller at a listing presentation. I wouldn't think the competition would be presenting these ideas.
A sixth way and the best way to sell your home.....Seek advise from and list your property with the most productive agent and agency in the area that you are comfortable with. If you don't it's very likely that you will be loosing the sale of your home to all those professional people that are already working with proven experience and technology to get the job done.
Don't fool around in a soft market YOU NEED PROFESSIONAL EXPERIENCE and EXPOSURE!
Very good tips, it always helps when the sellers are proactive in helping getting the home sold.
These are great tips for sellers in today's challenging market. Along with professional photos it's good to remember that professional home stagers often include quality photos in their service. So, we know how to make your home look appealing to your target buyer -- and how to photograph it so that the online photos put your home on the "must see" list.
Great post, you must think out of the box in this market.
You could also have your sellers make the first offer to those buyers who have been to the house several times and seem very interested but won't get off the fence. Have your sellers make an offer of a price that they would be willing to take for the home.
photos are a big deal. some houses are very tough to photograph and some houses showing the photos might get you less showings.
I agree with Karl's comment - Get yourself a good real estate agent!
Good ideas here - and I agree with you about the professional photography.
Ahhh - thanks for the great post! Sellers and Agents are part of team... and in today's market especially - creativity is not just a good idea - it's imperative.
Raleigh Realtor - Pamela St. Peter
A much better post than I was expecting ! Getting the seller involved and standing apart from the crowd are still critical !
Just sold my 2nd home.
I was willing to give the sellling realtor a $500 gas card.
definetely brought agents in.
These are good tips for tough times. Well deserving of the feature. Thanks.
The give away often isn't a good idea. Pricing it into the house (in the case of something substantive) can bring up problems during appraisal. The house needs to appraise... without the cost of the boat or vacation... for the appropriate amount. Next, it has to be disclosed in the contract and to the mortgage company.
Attaching a depreciating asset to a house isn't such a great idea... there are a LOT of people that took those type of buyer incentives and now are facing problems from them.
I am not a fan of clients holding open their own homes...bad things can happen to good people...but lots of good info here.
All excellent tips and yes you MUST be proactive when it comes to selling your home. BUT before you give away a boat or a trip, consider having your home staged by a professional home stager. The cost is alot less and the results will be more dramatic. PROMISE
Phyllis Pafumi
Thanks for the reminder to think outside the box. I especially like your development of the broker's open house and how it maximizes your house's reach.
Selling a house in a slow market isn't difficult. It's trying to sell a house in a slow market that is priced for a vigorous market.
Nice creative ideas....it defintiely helps to be proactive in this market.
make it happen! Houses don't sell themselves, (or I'm too young to know when they did)
Having a Pre-Listing Inspection is also something to consider. This moves things along having any and all items taken care of before potential buyers come through.
It would be nice if you knew anything about selling real estate!
Great idea's. I remember when real estate was a place to live, then as an investment. It seems like it's the other way today. Best advice, price the home to sell based on it's current condition & location. Your local real estate expert can help you with that.
Some good tips. I'm a big fan of good marketing, good pictures..all of this is very important. With all that in place, I agree with Jim, the bottom line in finding a buyer for your home is price....its always about price. There is a buyer for any home, no matter what the problems or issues if it is priced right.
Great post, and I agree that professional photography won't help if the house isn't staged for them. As a former film producer, it is important to sometimes "cheat" things in a photograph to make it look more appealing. I would want to be part of a neighborhood Open House - I think some Sellers would think to themselves, "Why am I doing this and telling my friends, family - why should I list the house or give the agent a commission if I have a party and the buyer comes from it?"
Great article. My sellers have dropped their price by $30,000, constant open houses both by me and the sellers, still no takers. Would offering a trip to Hawaii (or somewhere else, all expenses paid) be a good idea? Its going on 8 months now and very depressing. The house is a manufactured home in a nice mobile home park. 4 bedrooms, 2 bath and almost 1700 square feet in excellent condition. Suggestions anyone?
This is one that sellers often scoff at, but it works. Offer an above market co-op commission. There are agents that will look at those first and even push to close them. Let's face it , agent sell homes for money, and all other things being equal, it only makes good business sense to sell the one with the higher commission.
This is an amazing blog post.... You hit it the nail on the head with some very great suggestions.
Thanks!!!!
This is a great blog - sreamlined and to the point! Price, condition, staging and a great Realtor!
I've been using a professional photographer since the begining of the year. A night and day difference. My last listing sold in 45 days, a buyer in Alaska was surfing the net one day after it posted, contacted her agent, planned a trip and purchased this great home. I use the photos to create my virtual tours as well. The seller did all the right things, priced ahead of the market, staged, cleaned, and had a pre-inspection done . A dream seller, a dream buyer, pinch me.
Alot of great ideas. An agent I work with advertized winning a gas card at her open house and got a lot of people. Because they had to register to win, she also picked up some good prospects.
Great tips. I am quite hesitant of the sellers doing the Open House because the sellers can say something which will make negotiation for a better offer a little difficult. Sometimes they appear too anxious to sell, talk too much and make the buyer nervous.
I forgot to log in. That is my comment above.
In resposnse to the comment that some sellers would think and even say "Why should I list the house or even pay an agent if I have a party and the buyer comes from it?" First off, your exclusive listng aggreement states that the listing broker will receive the commission even if the seller finds the buyer. There are of course listing aggreements where the seller does not pay a commission if they find the buyer, not sure how many brokerages use that particular listing aggreement. In any event, if the seller found the buyer through a say "block party" or open house of their own, does the job stop there? No and No!! Does the seller have the knowledge of the contracts to protect themselves through the transaction process, are the fully aware of the state laws regarding seller disclosures, are they experienced negotiaters, do they know how to handle the inspection process and deal with the negotiations regarding repairs, do they know what to do if in appraisal comes in low and you have the opportunity to challenge the appraisal, do they know the escrow process, the list goes on and on. In this extremely challenging market, transactions are even more difficult to get to closing, it takes a very experienced and knowledgeable agent to get them closed. Buyers are more willing to walk away for any reason because of the inventory available to them. So in closing the most important thing you can do is make sure in your listing presentation the sellers know they are not just paying you to find a buyer and bring them an offer, the job only starts there!
Wow,
This has gotten a lot of good comments since I checked in last. Thank you to everyone who added to the conversation.
Ollie
Enjoyed your post. Makes a lot of sense. I find that when i hold broker's opens i must GIVE STUFF AWAY to get a good turnout form the realtors too. Here we usually give a gift cert to a nice restaurant or a Costco gift card. Whatever, a little something, seems to get more realtors out to look at the inventory.
Great article! Great feedback from the community! And I especially love the plug for " Mortgage Professionals". More and more of us need to realize that it is a "Team Effort" and work together for the benefit of our clients.
Lot's of great ideas. I love the idea of an open house party would would strongly suggest that your Realtor be present as well. The wrong information in the wrong ears can be a costly mistake.
I totally agree with letting the sellers do their own open houses, and don't belive it will help them turn FSBO. If they wanted to do that they would list with the multitude of companies offering MLS for as low as $250.00 but nothing else.In this market you need a team approach to selling a home. Give the seller a little incentive to participate, maybe a 1% reduction if they find their own buyer as a result of an open house. This can be good for you as it shows your an agent who can think outside the box.
As for giveaways they seem to flop in this area, Had a seller offer 5% to selling broker and no one even noticed it in the MLS. Needless to say the house never sold.
Jack
Hello Eva Liland!
I once have a mobile home listing in a good neighborhood. I was able to sell it after several months thru aggressive pricing and marketing (Craigslist, Website, Direct Mail to Target Buyers, Home Magazine, and AARP Newspaper). You have to price it right and give a higher commission to the selling agent. Check your competitions' pricing. The problem with mobile homes is there are not too many banks willing to finance it especially now. Luckily, I sold my listing to an all cash buyer. Good Luck!!!
Freddie Gonzales
Recently, I convinced a friend to have my company perform a "listing" inspection on his home prior to listing with a local agent. The agent tried to convince him not to spend the money, but he did. There were some issues he was not aware of. He was able to have the work done at his own pace & at reasonable cost. My report was used a selling tool included receipts by the contractor who guaranteed his work. When he got an offer it was contingent with an inspection. The buyer's inspection was clean and there were no further negotiations. Everybody was happy including his agent.
Does it help to advertise a home as a pre-inspected property?
Paul
Great post! Each item adds a small percentage of chance that the property will sell. When you add up all the pieces you'll find you're already sold!
Dear Friend,
No matter what the sellers and buyers still need us agents. We still know the market better than them. WHen you communicate with them, they respond to you as : I know I know" but yjey still gety stuck somewhere they don't know it all....
But good tips all together.
I don't agree with sellers doing their own open houses and/or follow up. I believe its best for them to be removed. I recently showed a FSBO and the homeowner went into such detail about improvements, etc, it was ridiculous. My client was uncomfortable and wanted to get out of there as did I. I knew he didn't like the home early on, but the proud owner of the home, will of course continue to elaborate on everything. Additionally, it is not good practice for a seller to follow up with prospects. Its part of a realtors job and thats what we do. If a seller is calling potential buyers, it looks a little desperate. Leave it to the pros!
Im going to do the block party idea in August for a couple of my hard to move properties.
Post fliers at train stations, buss stops, bulletin boards at complex pools, etc. You never know, its just a little more exposure for the listing. Worst case scenario, you meet a new buyer.
Unfortunately, Open Houses only result in a sale 1 out of a 100 times. They make the agent look like he is doing somehting to get the house sold, but the truth is they are merely using the seller's home as a honeypot to attract buyers who will go on to purchase another home.
Open houses rarely help. However, they dont hurt. and you never know. hey, we do get paid pretty well. right ?
You've got some neat info.. try showing it off at www.realestateloans.com
If you really did find a working formula that made you, say $1,000 a week online on average and it kept producing income no matter what, would you want to sell that idea to a bunch of noobs for $47 a pop and expect to retire on the proceeds? No way, man! It does not compute. It does not add up. And it does not make any sense to do that. I certainly don’t go shouting from the rooftops how I make my money online. Hell, I don’t want the competition taking a slice of my pie and neither would anyone who really does make good cash online.
www.onlineuniversalwork.com
Keep those power seller tips coming. I know that people need this stuff.