| Selling a home in today's real estate market can be an | | | | common-sense tips for home sellers who want to |
| eye-opening experience for many sellers. Many | | | | successfully compete against foreclosures and short |
| acknowledge the changing real estate landscape, but | | | | sales: |
| since their home is clearly the "best one in the | | | | · First and foremost, price your home |
| neighborhood", short sales and foreclosure sales are | | | | competitively. This does not necessarily mean that the |
| often dismissed as irrelevant. This perception is | | | | foreclosure sale down the street is the best comp for |
| particularly true in areas where short sales and | | | | your home, but it has to be considered. |
| foreclosures represent a high ratio of overall home | | | | · Present your home in prime condition. |
| sales. | | | | Foreclosures and short sales tend to be in |
| In order to effectively compete with this trend, it's | | | | comparatively rough shape; people losing their homes |
| critical to understand how these types of transactions | | | | often neglect routine maintenance for quite a while |
| impact local real estate markets. recently published the | | | | before they actually lose the home. Your home has to |
| results of their research into the percentage of | | | | clearly out-shine the competition in this area. Doing so |
| foreclosure home sales and the associated | | | | will go a long way to overcoming the "foreclosure |
| "foreclosure discount" in different real estate markets | | | | discount". |
| across the country. This research illustrates the point | | | | · Hire a Realtor who will out market the |
| that foreclosure home sales really do create two | | | | competition. Just putting a sign in the yard and flyers in |
| separate markets and that home buyers tend to | | | | a box won't cut it. In order to stand out and |
| demand a discount over and above the physical | | | | differentiate your home from sub-par competition like |
| damage often seen in these homes. All data was | | | | foreclosures and short sales, your marketing efforts |
| from the 3rd quarter of 2009: | | | | need to include an intense online focus with quality |
| Forelosure Sales - Metropolitan Area Foreclosure | | | | details, i.e. virtual tours, lots of good photos, enhanced |
| Discount as % of All Sales: | | | | listings, detailed descriptions, etc. Make it clear to |
| Pittsburgh, PA 59% 10% | | | | potential buyers that there's a difference in quality. |
| Cincinnati, OH 39% 15% | | | | · Offer minor incentives that highlight some of |
| Columbus, OH 38% 19% | | | | the advantages your home offers. Foreclosures and |
| Minneapolis-St. Paul, MN 34% 26% | | | | short sales tend to represent increased risk to the |
| Phoenix, AZ 29% 58% | | | | buyer as these homes have not been cared for, may |
| Denver, CO 27% 25% | | | | have been vacant and neglected for a long time, and |
| Los Angeles, CA 27% 39% | | | | can even be tough to inspect thoroughly because the |
| Kansas City, MO 25% 29% | | | | utilities are shut off. Offering things like a home |
| Riverside, CA 25% 66% | | | | warranty, a pre-sale inspection report, etc., can draw |
| San Diego, CA 24% 39% | | | | attention to the fact that your home is a better value |
| San Francisco, CA 24% 39% | | | | because it represents higher quality and less risk. |
| Las Vegas, NV 23% 74% | | | | · Make sure you can offer a reasonably quick |
| Washington, D.C. 21% 21% | | | | closing. Particularly with short sales, timing can be a |
| Sacramento, CA 19% 50% | | | | deal killer for many home buyers. Waiting for a |
| Seattle, WA 19% 17% | | | | response from the bank - sometimes for months - is |
| Portland, OR 18% 18% | | | | frustrating for many potential home buyers and makes |
| Source: Based on the results of their survey Zillow | | | | these types of sales a challenge. With the federal |
| reports an average "foreclosure discount" of about | | | | tax-credit deadline looming, timing will become more |
| 28%, which is an important factor for other home | | | | and more of an issue and is an area where you can |
| sellers to consider. For example, in the Denver real | | | | easily stand out. |
| estate market where the foreclosure discount is | | | | These are just a few tips on how home sellers can |
| reported at 27%, that $146,000 foreclosure sale down | | | | effectively compete with foreclosures and short sales. |
| the street might suggest that a similar clean, well-kept, | | | | The main focus should be creating separation on |
| non-distressed home in the same area might | | | | points of interest that matter to home buyers, and |
| command as much as $200,000. We can't do much to | | | | marketing those differences in the most effective |
| change the fact that these types of real estate | | | | way. Understanding the effect these types of |
| transactions are influencing many real estate markets | | | | transactions have on the residential re-sale market in |
| across the country; what we can do is acknowledge | | | | your area will enable you to plan your home-selling |
| the problem and figure out how to successfully market | | | | strategy appropriately, and overcome the dreaded |
| and sell homes in this environment. Here are a few | | | | "foreclosure discount"! |