How to sell a home in today’s market
Right now, it’s a buyer’s market throughout the nation, and Summit County Colorado real estate is no exception. That’s good for buyers, but when it comes to the seller’s point of view, homeowners need to keep an open mind when pricing and negotiating the sale of their property.
The most important thing for both sellers and buyers to remember when writing and compromising on a contract is that everyone has the same goal: To come to an agreement to move the title of the home from the seller’s name into the buyer’s name.
The best way to create an uncomplicated, easy closing is for both parties to remain flexible and stay calm. When emotion enters the picture, sellers sometimes forget their ultimate goal: to sell their home.
When a buyer comes in with a much lower offer than a seller was expecting, it’s important to remain open to negotiation.
For example, I recently had a buyer write an initial offer of $750,000 for a duplex in Highlands Ranch (a distinctive subdivision in Breckenridge), which the seller listed for $1,149,000.
The home was 2,623 square feet, which calculated to $438 per square foot. This per-square-foot price was overpriced, because the last sales in the neighborhood went for $260-$330 a square foot — a $178-$108 jump in a buyer’s market!
The seller rejected the first offer, so the buyer gave his final offer at $950,000. It was a solid bid, because it came out to $362 per square foot — higher than the last highest sale in the neighborhood. But, the seller was disappointed and rejected the offer.
In this market, when sellers get bids that are higher than previous sales, they are wise to work toward closing the deal, even if it amounts to less money than they wanted.
In this recent case, it would have been helpful for the seller to consider the fact that there are currently 64 homes on the market in Highlands and Fairways, and only 2 are under contract. In the last year (since May 1, 2008), only 18 homes have sold in the subdivision, and the lowest price per square foot was $255.87.
Many sellers think buyers will meet in the middle of the listing price and the buyer’s initial offer. But buyers tend to expect to pay much closer to their offer.
Initial offers are often ways of feeling out how motivated a seller is. If the seller counters with a price very close to the listing figure, the buyer has to rethink the situation and decide if it’s most important to purchase a home he or she really likes or find a better deal. Sometimes buyers won’t even respond to the seller’s counterproposal, which, again, makes them miss out on a potential good buy.
There’s no way to mind-read what a buyer will do with a counteroffer, but sellers should keep in mind that the longer a home sits, the less likely it is to sell close to the listing price, because when properties become “stale,” buyers automatically starting thinking something’s wrong with the home.
So, sellers need to either figure out a way to get the price they want (perhaps by making improvements) or accept less money.
Other issues to consider:
Sellers also can help negotiations go more smoothly by being willing to throw in the furniture, rather than asking more for furniture. Most buyers want furniture to be included in the listing price, and sellers have to remember that used furniture is not easy to sell piece by piece, and it often doesn’t bring in much additional income.
Closing dates are another detail some buyers and sellers get hung up on. Sellers usually want to close sooner rather than later, because every day they hold on to the property costs them in mortgage interest and homeowners’ association fees, or, at the very least, utilities, insurance and taxes. (This is another reason to accept a decent offer, even if it’s lower than expected.)
Some buyers — especially those paying cash — are happy to close early, often within two weeks. But buyers obtaining loans may need six weeks or more to secure a loan. The longer time that passes, the more likely things like “cold feet” can occur. That’s why cash buyers know they’re in a good position to negotiate a lower price.
Again, if a seller finds a cash buyer, they may get a little less for their home than they wanted, but cash buyers are more of a sure bet, as opposed to buyers depending on loans that may not go through for one reason or another.
It’s often useful for a seller to look at Breckenridge homes in their neighborhood for sale and assess how their property measures up. Buyers tend to be more knowledgeable about what’s out there and how everything compares, because they’re spending plenty of time looking, researching, adding up pros and cons of amenities and crunching numbers. Sellers can go into denial during a slow real estate market, especially when they’re very attached to their home.
While buyers want the lowest price and sellers want the highest price, it’s obvious that the two come into agreement more often than not.
I can help both parties gain perspective, find creative solutions and get both buyers and sellers what they want. Most of the time, everyone’s happy by the time they reach closing.
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The most important thing for both sellers and buyers to remember when writing and compromising on a contract is that everyone has the same goal: To come to an agreement to move the title of the home from the seller’s name into the buyer’s name.
hi this is sam,i have an idea for porches house.
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