Flip That House

There is a lot of advice out there on selling your house. You’ll hear stories from your family and friends, read books and magazines, and browse websites. What most of these won’t tell you is how to sell your house in a recession.

There are several keys to selling your house in a recession, and most of them have to do with price. You will need to be able to differentiate from the value you put into the house, how much you think the house is worth, and what buyers will actually pay. Don’t worry—it’s not as hard as it sounds.

1.    Know the market and the neighborhood. You need to discover what other houses are selling for in the area, and what buyers are looking for in the way of price. Don’t undercut yourself, but remain competitive.

2.    Discuss finances with your spouse and determine a price tag that is your minimum sell, the lowest you will go for any buyer. Keep this information private so that you don’t have to worry about people making offers at that price. You want negotiating room, but you also need to have a set amount that you cannot go beneath.

3.    Make sure the house looks good so that buyers know they are paying for something worth buying. Throw some fresh paint on the walls, make sure everything is nice and clean, and replace any small ticket items that can make a big difference, like light fixtures or mail boxes.

4.    People don’t want to live in a trashed out neighborhood either. If your neighbors’ homes or yards look especially unruly, then do a good deed and ask if you can pick it up for them.  It could be an elderly person lives there and is not capable of heavy yard work.

5.    Know what needs to be repaired on the house and get estimates. Your new buyers will want to ask for allowances against the asking price of the home in order to make repairs. If you don’t have estimates you won’t know if they are being reasonable or not in their requests.

6.    Research your area and get the best real estate agent you can find. Make sure they know what they are doing and are familiar with your area. Find out what they will and will not do to sell your home, and if it is in line with your expectations you can sign the contract. If not, keep looking.

7.    If you sit on your house for more than three or four months, your price is probably too high. In the recession and current buyers market,  you probably won’t get as much for your house as you would otherwise.  So be willing to negotiate.

Happy Investing!