If you are facing foreclosure, you most likely want to sell your home quickly. Currently, foreclosure rates are at their highest and homes are taking longer than usual to sell. How can you sell a foreclosing home in such a market? Get aggressive! As the seller, you are able to influence three factors that determine how quickly a home sells: pricing, condition and marketing.
The following tips will help you sell your foreclosing home:
Factor #1- Pricing
Avoid trying to salvage equity on the home
You may have purchased your home for thousands of dollars more than what homes are currently selling for in the same area; however you will not receive a current fair value for your home. Be focused on your goal: Are you trying to get more money for your home by waiting for a high bidder or are you hoping to avoid the 7-year black mark that foreclosures leave on credit reports?
To sell a home quickly, you have to price it aggressively, which means low. Most homebuyers will ignore over-priced homes. Other buyers will look for sellers who have realistic pricing. If you hike up the price, it will cause your property to remain on the market for too long.
Be realistic about the value of your home
Request your agent to conduct a Comparative Market Analysis (CMA) that lists similar properties that were recently sold in your area. Look at the sale prices and not the listing prices. This will give you a good indication about what your home is worth. Take the sale price and set the price of your home ten percent less than that number. Homes that are slightly under-priced seem like good opportunities to motivated buyers.
Understand how much time you have available to you
A buyer may not be willing to pay a high price for your home, even though that’s what you owe. If your home is valued at less than what you owe on it, talk to your lender and complete a Short Sale form. Ask your lender what an acceptable low price would be. Short sales do blemish your credit report but not as much as foreclosures.
Factor #2- Marketing
Use the Internet
Although marketing your home on the Internet is your agent’s responsibility, you need to ensure it is done. Up to 80% of house hunting starts with a home search on the Internet. This is why you need to list your home on all leading real estate websites. Most Internet marketing is free.
High quality Images
Property listings without images are quickly skipped over by homebuyers. Try to post more than a single image. Buyers become more interested and are more likely to come for a viewing if the home is presented well and there are many depictions of the home. Ensure that the images are clear and that they represent the home in the best possible light.
Factor #3- Condition
Spend time cleaning up
Before a house viewing, you need to do a thorough cleaning. Start by decluttering. Throw away items that are worn out or not used. Add a fresh coat of paint and soft lighting. You may consider changing the carpets if they seem worn out. Get rid of extra furniture. You don’t have to remodel the kitchen or bathroom, but a little bit of paint, changing the fixtures and the sink are inexpensive options. On the day of the viewing, ensure your pet is kept out. Pay close attention to the front door. It should look inviting.
These tips should help you in your quest to sell your home quickly. Remember the three most important factors to a quick sale are: pricing, marketing and condition.