Selling your house is a big deal and you obviously intend to sell for a profit and not lose money on your investment.
It is a pretty straight forward equation: the selling price should be higher than the original price you paid for the house, and the bigger the gap, the higher the return on your real estate investment. Now, if you are in a buyer’s market, it might be a bit harder to sell at your asking price because the real estate market is not in your favor, and buyers have the upper hand in this case. This is not to say that it is impossible to make a good profit on your real estate investment, but you need to do extra work to reap high returns. This post gives you a thorough breakdown on how to sell a house fast in a buyer’s market. But before we get started, let us get down to the basics of economics.
The Law of Supply and Demand
If you studied economics in school, chances are good that you remember the law of supply and demand and the ever changing dynamism between these interdependent forces that which affect the overall market and consumer behavior. Simply put, when there is an oversupply of a good or a service, prices fall, and when there is high demand, prices tend to rise. So, to apply it to the housing market, when the supply of houses exceeds the demand, property prices drop and vise versa. Supply and demand in any market will eventually reach an equilibrium price, and the housing market is no exception, hence why there is a buyer’s and seller’s market in real estate.
Buyer’s Market vs. Seller’s Market
To learn how to sell a house fast, every real estate investor must understand the difference between a buyer’s market and a seller’s market. To make it easier for you, remember the following:
In a buyer’s market, the supply exceeds the demand, and there are more houses on sale than there are buyers. On the opposite spectrum, a seller’s market favors the sellers because there are more buyers than supply, and in turn sellers have the upper hand in price negotiations.
What Happens in a Buyer’s Market?
In a buyer’s market, sellers might not have great leverage when it comes to selling their houses as there are fewer buyers and more houses for sale. Smart real estate investing starts with finding the right investment opportunity from the beginning to avoid pitfalls in a buyer’s market. Nevertheless, we give you the best tips and tricks on how to sell a house fast for a profit in a buyer’s market.
How to Sell a House Fast In a Buyer’s Market
1. Stand out from the competition
If you want to know how to sell a house fast, you have to offer an extra oomph on home appeal to get buyers’ attention. In a nutshell, spice up your home to make it more attractive, appealing, and memorable. This includes home improvements and custom design such as landscaping, new roof, improved home decor, building a deck or a patio, an outdoor pool, nice driveway, etc. Do not underestimate the power of a good looking home.
2. The Price Is Right
One key takeaway on how to sell a house fast in a buyer’s market includes finding the right competitive price. Make sure you do not over-exaggerate the listing price on your home while also making sure that it is not the lowest priced home in your neighborhood. To find an equilibrium or the right competitive price, consult a real estate agent or a real estate broker to price your home fairly. Also check out online real estate websites like Mashvisor to see what comparable properties are selling for in your area. Price is a major factor for buyers, and if your home is way over the equilibrium market price, you will lose any chance of selling your home for a profit.
The ‘how to sell a house fast’ dilemma in a buyer’s market’ is rooted in the appearance of your home. Make sure your home is clean and clutter-free; it is all psychological because buyers need to be able to picture themselves in the home before closing in on any deal. Some suggestions include but are not limited to removing big or unnecessary furniture to make more space and putting away personalized items, such as family photographs. You can even hire a home stager to help make your house more appealing to potential buyers. Make sure you find a good one to get your money’s worth.
4. Give Buyers an Incentive to Buy Your House
If you want to kick it up a notch and learn how to sell a house fast, you can offer potential buyers incentives to buy your house. This may include offering credit toward closing costs, offering to pay closing costs entirely, or offering a transferable home warranty for 1 year to cover home appliances, for example, the fridge. Consult a real estate agent in case you are not sure what the best incentive to offer is from your standpoint.
5. Improve the Aesthetics and Make the House Squeaky Clean
Learning how to sell a house fast in a buyer’s market boils down to the attractiveness of your home’s exterior and interior design. As previously noted, a home’s aesthetics is the first thing a buyer sees, and it sets the buyer’s impression of the house from the get go. Make sure your roof is in tiptop shape, the lawn is freshly mowed, the exterior has a fresh coat of paint. Another point to keep in mind: representing a clean home gives sellers a far better chance to close a good deal on a house. It is these little details which can help find the right buyer for your home.
Other Tips on How to Sell a House Fast
1. Be flexible.
2. Research the local housing market thoroughly to know if your home is priced fairly relative to comparable houses for sale.
3. Update carpeting and paint.
4. Get a pre-sale inspection.
5. Take good photos because many sellers opt to view houses online.
6. Depersonalize your home and emphasize a neutral palette of colors.
Selling in a buyer’s market is not an easy task, but if sellers do the extra little work mentioned above, they can beat the competition and find a buyer who is willing to pay a little extra to get the house. Most importantly, study the real estate market to get the right pricing; you do not want to over or under price because it will backfire and hurt the return on your real estate investment in a buyer’s market.