Tuesday, April 23, 2019

My Central Minnesota House isn't Selling in, What Can I do Now?

You've had your house cleaned and on the market for over 2 months, and still no offers.  Your agent hasn't been helpful and you're now getting a little frustrated.

Here are top 5 things you can do to move your house this week!

1) Replace your agent. 
Your real estate agent is the link between your house and the world of buyers.   If they're not effectively marketing your property, you need to consider different options.  There are 1.3 million real estate agents in the United States.  Approximately 1 of 300 people are real estate agents.  Chance are you know someone who is an agent.  Only ten percent of real estate agents handle ninety percent of all transactions.  Are you trying to do someone a favor?  Or are you trying to get a result?    Face the facts that you may have hired the wrong salesperson.   Hire slow and fire fast, that's what I always say.  This is not rocket science.  If they're not getting your home exposed beyond the MLS, they're not doing their job.  Look at the photos.  Do they look professional?  Or were they taken with an iPhone?

2)  Offer Seller Financing
Of all the people that need to move into a home, only 30% can actually get a loan from a bank.  That means 70% of people looking for housing can't qualify.   Seller financing is a great strategy for selling your home.   This could include Rent-To-Own or Contract for Deed (Agreement for Deed, Installment Land Contract).    Although this may sound a little outside your comfort zone, it's a normal way to sell properties especially when banks aren't lending money.  During the downturn, I sold over 70 houses that I owed using seller financing.    It's easy and there are safeguards to protect both parties interest.

3) Paint the interior, declutter and stage the property
You may like your furniture, but a potential buyer may not like the looks or smell of the your furniture.  In a competitive market, you need to be objective and look at how a buyer views your property.  If there are medications on the countertop, 19 pairs of shoes by the front door or in the master closet, or dozens of toys scattered around the property, this is going to be a problem.  I suggest moving all of that out, and painting the interior of the home to give it a fresh look and feel and smell.   Choose neutral colors: grey or beige.   Then pair down the furniture or consider hiring a professional stager.  Your taste may be outdated.  If your furniture is more than 10 years old, chances are it looks dated.  Step it up. Painting and staging can be done on a budget.

4) Rent the home
Renting your home is probably not your first choice; however, it can be a great way to maintain your credit, pay down an existing loan, and make a little extra cash.   Hiring a good property manager can be a great critical success factor (check references), as they typically have systems to help with rent collection and finding the right tenants.   Renting can really be a great way to maintain and build wealth.

5) Drop the Price
Listen, face facts, the price is probably the determining factor.  If you can't lower the price any more because you can't afford it, consider renting it or selling it on a lease-option.   Bring the price down by 10% and see if that brings more interest in the property.  Most sellers think their property is worth more than it is, by about 10%.  They get this number from various non-scientific sources.   It is the price.  I'm telling you.  A properly priced home that is exposed to the market will move.   Drop the price.

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