3 Strategies for a Quick Home Sale
Most sellers have a specific goal when it comes to their transaction: a quick sale and top dollar. But sometimes fast action doesn’t align with achieving the highest and best value.
There are multiple schools of thought on this subject and the perspective varies not only with where you are in the country, but also by price point, neighborhood and even down to the block. When it comes to pricing and the search for a quick sale, it’s always best to get help from a local agent.
Here are some strategies you can use to get offers fast.
1. The Theory of Under-Pricing
Under-pricing means that you go to market with a list price that is just below what the comparable sales in your area support.
You can’t pinpoint the exact market value of a home until it sells. But before you list, there’s always a range. If you price your house at or below the bottom of the value range, you are under-pricing the home.
In many West Coast markets this strategy will work effectively. Take this San Francisco home, for example: priced at $1.1 million, it received 10 offers and sold for $1.425 million in less than a week.
Risk alert: If you price your home low, this plan could backfire — big time. If you don’t know your market and this strategy doesn’t work, you’d better be ready to accept that list price.
2. Staging and Market Presentation
Well-priced homes that also show well sell quickly. If you want a quick sale, you need to invest some serious time in getting the house ready.
Prepping the home means taking out large pieces of furniture and personal items, painting, replacing carpets, finishing floors and even doing some minor renovations.
Enlist the help of a home stager and take their advice, and you can be assured a quicker sale. The investment of time and money will pay itself back.
Risk alert: If you go overboard on staging or you don’t spend the time and money in the right places, it could be a waste. Don’t make staging decisions in a vacuum. Focus on kitchens and bathrooms, de-cluttering and cleaning. When in doubt, ask for help.
RealtyTrac: Investor demand boosts residential property sales
Residential property sales continued to edge higher in September, as an increase in investor purchases boosted transaction volumes, RealtyTrac reported.
The latest RealtyTrac report, which covers the sale of single-family homes, condominiums and townhomes, found that residential properties sold at an estimated annualized pace of 5.6 million in September, up 2% from August and up 14% from September.
Meanwhile, institutional investors, or firms purchasing 10 or more properties, accounted for 14% of all sales in September, up from 9% in August and also 9% growth from September 2012. September posted the highest percentage of institutional investor purchases of any month since RealtyTrac began tracking the transactions in January 2011.
“The housing market continues to skew in favor of investors, particularly deep-pocketed institutional investors, and other buyers paying with cash,” said Daren Blomquist, vice president at RealtyTrac.
In addition, the median sales price of all residential properties – including both distressed and non-distressed – in September was $174,000, up 1% from a revised $172,000 median in August and up 6% from a $164,500 median price the same period a year ago.
The median price of a distressed residential property in foreclosure or bank owned hit $112,000 in September, 41% below the median price of $189,000 for a non-distressed residential property. Distressed sales accounted for 25% of all September sales, rising 18% from all sales a year ago.
“Distressed sales remain persistently high, particularly short sales,” Blomquist said. “Markets with the biggest increases in short sales tend to be those where either foreclosure starts or scheduled foreclosure auctions have rebounded in the last 18 months — translating into more motivated short sellers — or those with a still-high percentage of underwater homeowners with negative equity.”
Focusing on the metro areas with a population of 1 million or more, the places with the highest percentage of institutional investor purchases in September were Atlanta, Las Vegas, St. Louis, Jacksonville, Fla. and Charlotte, N.C.