Anna-Lise Troup's Tucson Area Real Estate Update: Creative Selling in Tucson: How to Beat the Neighbor to a Fast Sale

If you're getting ready to sell your home, news reports of foreclosures, a buyer's market or slower home sales may not sound encouraging. The good news? You're not really competing with the entire world—you're competing with your neighbors!

Remember: All real estate is local. What's happening nationally, in other regions or communities, has little relationship to your local real estate micromarket, which has a buyer demand, housing supply, location and amenities that are unique to your area. Even neighborhoods within larger markets can differ a lot in home prices and the pace of sales.

Also understand that buyers typically narrow their sites to a particular neighborhood; then they zero in on the best value among the homes for sale in that neighborhood. Value means more than price—it's a combination of amenities (location, size, style, condition, conveyances, etc.) and financial considerations (price and monthly payment, closing costs, utility bills, taxes and so on).

To sell quickly today at the best price, you must show buyers that your home offers better value than competing neighborhood homes. Accomplishing that in a buyer's market calls for a creative approach. Consider the following strategies.

Price Right from the Start

Many home sellers are tempted to start their home sale with the highest listing price they could hope to get. Unfortunately for sellers, today's buyers are more educated about home values than ever before—and they're comparison shopping. In a buyer's market, a creative strategy is setting your home's price at the lower end of its market-value range, maybe even below neighborhood comparables. This attracts pent-up buyer attention fast and generates competition that could result in a full-price (or higher) offer. We'll be happy to conduct a comparative market analysis (CMA) to determine the best listing price for your home.

Maximize Visual Appeal

We've discussed in previous newsletters how important it is to create curb appeal, clean everything, declutter, remove personal items, paint and recarpet, update fixtures and repair anything that's not working properly. Those are necessary basics to home selling in today's market. Here are some creative strategies to consider:
•Hire a professional to “stage” your home. Using proven design techniques, “stagers” rearrange furnishings to best complement a home's unique features. The stager may ask you to place some of your furnishings and possessions in storage or might bring in furniture to create a particular look.
•Add fresh flowers for scent and color in rooms throughout the home and, weather permitting, in flowerbeds and pots outside.
•Decorate dining tables with beautiful cloths or placemats and full place-settings to emphasize the entertainment possibilities of the space.
•Focus on first impressions. Pay special attention to the front-door area outside and the area a buyer first sees upon walking inside.

Get the Word Out

Having your agent include your home in the local multiple listing service is important, of course, but you can do other things yourself to turn up the volume on your home-sale announcement.
•Make sure your home's property flyer highlights the unique and attractive aspects of your home: upgrades to structure or systems; new appliances; energy-saving features; landscaping; etc. Enlist a child to keep a brochure box filled. Consider a map showing proximity to amenities such as public transportation, parks, schools, supermarket and so on. Include a floorplan showing location and sizes of rooms, so buyers can plan how their furniture might fit.
•Use your e-mail signature to promote your home sale. Even if recipients aren't interested, they may know someone who is.
•Inform your most likely buyers (first-timers, young families, empty nesters, retirees, etc.) through organizations you and/or they may be involved with. Use bulletin boards, newsletters, websites, meetings, etc.

Make It Easy

With tighter loan standards and higher required down payments, some buyers need extra help to purchase a home.
•Show buyers how to buy your home. We can contact a lender to provide a “Buy Today” summary of down payment and monthly payment options for different types of loan programs based on your listing price.
•Be flexible with contingencies. A home-sale contingency, for example, allows buyers time to sell their current home, so they can afford to purchase yours. Or, let the buyers specify their move-in date, even if you have to rent temporary accommodations before moving to your next home. Remember, contingencies for financing and inspections (general, pest, radon, mold, etc.) are fairly common in a buyer’s market.
•Consider a lease/purchase. If you don’t need your funds right away, let the buyer rent your home with a delayed settlement, if you are sure the purchaser will eventually qualify for a loan. Part of the rent money could be applied to the down payment.

Offer Incentives
Pay some closing costs. This strategy helps buyers reserve cash for their down payment. They can also get an extra tax deduction for any loan points you pay.
•Take back a second mortgage. You’ll want to make sure the buyers can qualify, of course, but offering a loan for some or all of the down payment could put you way ahead of the competition.
•Add conveyances such as a chandelier, appliances, riding mower, yard tools, window treatments, playset, yard bench, porch swing, etc.
•Pay for a year of utilities, homeowners association dues, lawn service, pool cleanings, gym membership or offer a decorator’s or furniture allowance.

Remember, every creative technique doesn’t fit every property. Together we’ll select the best creative strategies that will help you beat your neighbors to a sales contract. Simply give us a call to find out more!