1. REO (bank owned, foreclosures): We are seeing bank owned home prices sink lower and lower which is driving the wave of home prices downward. Good news though- inventory levels are lower now and starting to level out. The inventory absorption rate in this market is improving and hovering at 4.7 months and down from 12 months this time last year. People are attracted to REO listings because they think they are getting a bargain. The problem is, most times they are not. When your list price is low and you are in competition with distressed properties, even though yours is not, you will generate more interest. Most buyers will have to go through less red tape to get an accepted offer plus not worry about what is wrong with the property. There are fewer disclosures when you buy a bank foreclosure and you may not know the history of the house when you buy it from the bank.
2. New Construction: New construction set the trend with prices. There are lots of new home construction just sitting there on the market, in some cases for good pricing. Some builder‘s are giving away upgrades. Make sure you price your home competitively with the new home market and adjust for age and upgrades.
3. Short sales: Short sales are when people are selling for less than what they owe and they (hope) the bank will forgive part of their debt when the home closes. There is an huge abundance of these listings as competition but fortunately for you, as a seller or potential seller, these deals that a long time to close and get approved.
Pricing will not be the only factor to entice a quick offer. Here are some more suggestions:
- Stage your home to make it stand out from the competition. Why do new home builders send over 100,000 to stage their homes? Because staging sells more homes. People can’t imagine what the home will look like with their furniture in your home, so staging it that appeals to the masses is smart marketing. Hiring a Professional Stager will know what works and what doesn’t.
- Make your home easy to show. Do you have pets to worry about? Often times, pets can make it hard for you to show your home. Talk to your Realtor about ways to keep you pet safe and still show your home without a lot of notice.
- Make sure the agent has a good marketing plan to get your home the most exposure: Multiple offers are not UNHEARD of right now with homes that are priced right.
- Offer incentives to attract buyers. Offer lender allowed closing costs or other incentives.
- Keep it clean. If you are competing with new homes, wouldn’t it make sense to keep it “model perfect” at all times?
Kathy Dyer Realtor CABRE #01723710
KW Coastal Estates
Carmel Ca. 93923