Turn on any news program or talk to a real estate agent and you’ll surely hear that the down economy has created a “buyer’s market” for most of the country. Many LGBT people are taking advantage of low interest rates and foreclosed homes to secure the dream of home ownership.
But as with every story, there’s a flip side. Many LGBT people who already own a home have found themselves stuck with a property they cannot seem to sell. Tales of homes staying on the market for nearly a year are common and some people simply give up on the sale and decide to stay put while missing out on buying opportunities.
Selling a home in this market can be difficult, especially since the most robust season of the year for doing so is coming to an end. Many eager buyers who came out of the woodwork in springtime and then finalized their purchases over the summer are now gone from the landscape, and fewer buyers mean greater competition for sellers whose listings are languishing.
But there is hope. According to GayRealEstate.com, a nationwide resource that links buyers and sellers with LGBT and LGBT-friendly agents, there are ways to attract a buyer and close a deal before cooler weather moves in.
1. Evaluate Realtor Performance
First of all, evaluate your listing agent’s performance in an objective manner. Are they doing enough to advertise the property, and have they held any open houses to encourage visits from potential buyers?
If you live in a LGBT enclave, does your real estate agent understand the local LGBT market and have strong connections to those who live and work in the neighborhood? Sometimes hiring a broker who is also an active and supportive member of the LGBT community can be an advantage if you are an LGBT homeowner.
2. Redefine Your Goals
As the brisk sales season winds down it is important for homeowners to reexamine specific goals as a seller. They should ask whether they are really determined to sell and move, or whether they might be interested in alternatives such as refinancing, renting part of the home to a tenant for extra income, or waiting until the market improves and they can realize a greater return on the investment.
3. Study the Competition
In a competitive market it is essential that sellers know what other sellers are doing. Know the listing prices of competing homes. Stay current regarding sales prices of similar homes that have recently sold and how long were they were on the market.
Check out other homes. Examine their curb appeal and the conditions of important features and components such as the roof, the paint job, and the landscaping. If your home needs updating in order to compete, factor that into the strategy and pricing.
Analyze sales data and make sure the offering price is where you want it to be in terms of being either on the high side, somewhere in the middle, or the best bargain on the entire street.
4. Add an Incentive
By adding a home warranty, a repair allowance, or an offer to help pay a buyer’s closing costs you can often inspire hesitant buyers to get off the fence and sign a contract.
Sellers can also offer intangible incentives through improved curb appeal, a home staging makeover (where a professional is hired to decorate a home to look like a model home), or a simple cosmetic upgrade that won’t strain a budget but will quickly dress up the property.
5. Crunch New Numbers
Holding on to houses across the winter season can mean you will face higher utility bills, especially if you live in an older home that is relatively expensive to heat. The longer you keep the home the more taxes and insurance you’ll pay, too—but you will also reap some tax benefits by paying mortgage interest. Crunch the numbers with the help of a realtor to understand the bottom line benefits to holding or selling. That information will help sellers decide whether to wait for higher prices next year or to lower the price to inspire a sale now.
6. Use Calendar Benchmarks
Even houses that are difficult to sell will move if the price is attractive enough to buyers. But sellers often procrastinate when it comes to dropping the price—even if they believe it is a smart thing to do—because they get too emotionally involved.
Remove the emotions and avoiding costly delays by relying upon the calendar—not feelings and whims—to trigger price drops. If a seller plans to drop the price 20% to motivate a faster sale, for instance, one strategy could be to drop the price 10% if nobody makes a serious offer within 15 days. Then if the house is still not attracting enough attention, sellers should automatically drop to the 20% off mark when the 30 day deadline expires.
Sellers should mark the dates on a calendar and give instructions to his or her realtor to set things in motion if time elapses past a designated deadline.
GayRealEstate.com also suggests that if a homeowner is in an upside down mortgage like many Americans, he or she should speak with a lender or credit counselor about loan modification.
For more information on selling and other real estate tips specific to the LGBT market, visit GayRealEstate.com.
