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Real Estate Will Always Be A Sellers Market
Real estate is always a seller’s market, so long as you do the correct things. This means that you have to make a list of “to do’s and not to do’s.” No matter what price you want to sell your house at, if you have an unkempt yard full of dog poop…you are unlikely to sell that house. So what are the things you should do in order make sure the market is yours for the taking? Well here are some great tips to get the absolute highest price for your house.
We talked a bit about dog poop and how that is definitely a turn-off…well so is a garbage filled yard. You have probably seen some of those yourself. Just walking around my neighborhood, here a couple of things that would need to addressed. One yard has an old Chrysler with flat tires parked on the side of the lawn. Inside the car, you can see stacks and stacks of old newspapers and magazines. Now that is a bit extreme but you can see how some people do not think. In another yard, all along the side of the house, there are a variety of barrels, some with lids, some with a various assortment of pipes and chunks of wood hanging out. Clean this stuff up guys.
When you start having the open houses, your realtor will be showing people around. This is your chance to grab people before they head out the door and get some ideas as to what they didn’t like about the house. You can use these tips to improve the look of the house for the next batch that walk in.
Have a look around your house and see what might throw some people off. Now if you are a superstitious person for instance, this might be a good time to get your superstitious artifacts packed up nicely…before anyone come wandering through the door. These things can really creep some people out. Not everyone is going to feel the same about your particular superstitions and you want to get the most bucks you can, so make everyone happy.
Next up, people are looking at houses just like they look at cars. How much work has been done on the house and who did it? Keep your house well maintained and use contractors who are super professional and also don’t mind providing information to prospective buyers. Have a list handy that you can pass out with details of the work-when it was done and who it was done by. People love to buy a house that has been well maintained and if you can show that you used contractors who always used the best materials and knew what they were doing…you’ll be in a selling dream.
The point I’m trying to make is that real estate will always be a sellers market even when there is an oversupply of homes whether you realize it or not. How can that be when it sounds like a buyer’s market when there is a housing oversupply?
The first reason is that each home is unique in it’s own way. Not one home is identical to another even when 2 similar layout homes are stacked on top of one another. You are in control of the product that is being transacted. Individual decorations and design make each one unique. This means that you have the power to influence it’s value. Even if we are to judge that 2 similar layout apartments are similar, it will be an extreme coincidence to find both homes on the market at the same time unless we are talking about a new building launch yet to be built. In all possibility, only one will be available for sale at any one time. This means that buyers are unable to buy a similar apartment at a lower price if they to walk away from a deal.
The second reason is that when you sell, you will be looking to buy as well. This creates demand for more sellers all over again. Whereas this cannot be said to be true for buyers. Buyers do not necessarily look to sell after they buy. People need a roof over their heads as long as they can afford it. This simple tilt of demand for sellers simply makes it a seller’s market all the time. Bargain deals also usually occur because the seller decided to sell low rather than because the buyer decided to buy low. A clear sign that the control to where a transaction goes lies with the seller.
Thirdly, prices are always determined by sellers. In normal trade, a seller has the product that a buyer wants. A buyer can state whatever price he is willing to pay, but it will be ultimately down to the seller whether or not to trade at a specific price. At worst, a seller has all the power in his hands to take the property off the market and wait for demand to improve. Bearing in mind that the seller’s home is unique while the buyer’s cash is the same as any other buyer. By adjusting asking price, a seller also decides the time frame set aside to sell the property. For example, if a house is worth $1m, a seller can decide to sell it today by setting an asking price of $800k. He can also decide to sell in 1 month by asking for $1m, or even stretch 3 months by asking for $1.25m. You see, the seller is in control at all times. When home owners are pressured to sell, it is often due to factors that are not related to the market at all. Sellers that sell at the wrong end of a bargain usually do so because of individual circumstances, not because they are sellers.
Finally, the seller ultimately decides who to sell it to. A seller can reject you offer even if it is the best around and sell to someone with a lower offer instead. There are many reasons why this can happen. But since they are the owners of the asset, they have the luxury to decide who to sell to. Money does not always talk in these circumstances.