For Sale By Owners: Dangerous Challenges In A Down Economy
For-sale-by owners face added challenges in the present down economy that if not carefully considered, can bring ruinous results to your home sale. What was once considered a simple process to collect enough info to set a sales price has turned into an all-out, in depth real estate market investigation. If you are trying to sell your own home in this real estate market, be ready to wade through short-sales, quick sales, foreclosures, and typical home sales to come up with a marketable price.
Once you have decided to put your home on the market, setting the sales price is the next step. In a stable economy and market, this wasn’t so hard. It might have taken a little searching, but certainly didn’t require the shrewd investment banker approach it has become over the last several years.
In years past, a causal look through the real estate section of their local paper gave you a pretty good idea of where home prices were headed. A few added calls to local real estate companies about homes for sale in and around your neighborhood, gave the additional info needed to set a sale price.
Now, the entire market has changed. Real estate sales are not so typical. You may find the dollar amount of home sales are all over the place in your area. So you have to investigate further and determine the types of sales before setting a realistic price for your home, in your market.
Here are a couple of things you must consider. Not all sales are equal. Many new variables have entered most markets or, are reflected in a greater percentage of sales.
When considering a price for your home, you now must take into account short sales, foreclosures, and quick sale pricing. These are sales at lower than typical market value, and are the result of a depressed economy. They reflect a higher than usual foreclosure rate.
You may not be in a position to have to consider one of these options for your sale. But remember that buyers today are drawn to these types of offers, because of the huge discounts from typical market value they offer.
What’s the best approach? Be cautious. Actually the best advice is the same advice that’s always been given. Take all information in before setting a price for your house. If you don’t have to sell quickly, and there are a significant amount of homes selling in your market by one of these discounted sale options, it may be better to sit on the sidelines for a moment and let the dust settle before putting your home on the market.
If you still have the need to sell but aren’t forced to sell for economic reasons, lay your sales strategy out in clear terms before you put your house up for sale. Know your next move before you have to make it.