How To Beat Short Sales And Foreclosure
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Not every area has a flood of homes sold in short times or by banks. If your area has a lot of these types of sales, you do have a problem. How do you compete? The biggest concern is pricing. Bank-owned homes will be connected directly to yours. How can you compete when the home you're are trying to sell has equity now, but was bought when the prices were inflated.
Short sales and foreclosures will make pricing your greatest tool.
Setting the perfect price for a home surrounded by foreclosures and short sale properties is a combination of three elements; science, emotions and cold hard facts. Take a look at the home from the buyer's point of view, as well as the seller's. You and the buyer need to agree even if you know your home has a higher value. If the buyer does not agree with you, they will not buy your home.
You should keep in mind the following three things. What's the difference between the price the house and the price you must sell it for? How can you make the an appraiser value your home higher. Why should a buyer want your home over a distressed home sale?
Appraisers won't give allowances for upgrades that you've done. You may want to price a home lower, so that even if it needs upgrades, the price is still lower than other options. If it is still priced with the distressed homes, and has a higher value, it is an almost sure sale. With improvements on a distressed home, a buyer will not buy a home that they have to pay more for. That is their highest purchase price.
The perfect selling price:
It is necessary to compare apples to apples and not apples to oranges. Consider all of the homes that have sold in three months in the general area of your property. The homes that have sold also need to be in comparable neighborhoods. Location, location, location is always a factor. Also, the obvious distinction between size of homes like comparing a one story dwelling to a two story or a duplex is not oranges to oranges. The age of the home will make a difference as well. A good sale price might result in a bidding war.
Short sales and foreclosures will make pricing your greatest tool.
Setting the perfect price for a home surrounded by foreclosures and short sale properties is a combination of three elements; science, emotions and cold hard facts. Take a look at the home from the buyer's point of view, as well as the seller's. You and the buyer need to agree even if you know your home has a higher value. If the buyer does not agree with you, they will not buy your home.
You should keep in mind the following three things. What's the difference between the price the house and the price you must sell it for? How can you make the an appraiser value your home higher. Why should a buyer want your home over a distressed home sale?
Appraisers won't give allowances for upgrades that you've done. You may want to price a home lower, so that even if it needs upgrades, the price is still lower than other options. If it is still priced with the distressed homes, and has a higher value, it is an almost sure sale. With improvements on a distressed home, a buyer will not buy a home that they have to pay more for. That is their highest purchase price.
The perfect selling price:
It is necessary to compare apples to apples and not apples to oranges. Consider all of the homes that have sold in three months in the general area of your property. The homes that have sold also need to be in comparable neighborhoods. Location, location, location is always a factor. Also, the obvious distinction between size of homes like comparing a one story dwelling to a two story or a duplex is not oranges to oranges. The age of the home will make a difference as well. A good sale price might result in a bidding war.
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