You’re laughing right now, aren’t you? In today’s real estate market owners often want to sell for more than a property is worth. Is it possible? Yes! Discuss these options with owners and lenders to come up with a strategy that will work for your homesellers.
1. Wait for the market to improve. If you wait long enough, chances are it will go up. Real estate has appreciated at a rate of over 3.8 percent per year on average 2000-2011 (reference MSN Money.com, Case Shiller). Eventually your homeowner’s property will be worth what you want if you can wait long enough.
2. Improve the property to sell for at or above dollar by renovating square footage, landscaping, curb appeal, professional cleaning, adding a bedroom/bath/deck, remodeling kitchen/baths, etc. Improve the property to the point it’s like new, and it will sell for a “new home price.” Beware: Cost may not equal return.
3. Offer terms like a Buy Down for Buyers. If you advertised 1 percent interest fixed for the first year, 2 percent for the second year, 3 percent for the third year and 5 percent thereafter would you get more than the home is worth? Probably. Terms sell.
4. Offer a large CoOp Percentage. I once had a seller pay a large percentage to the selling office. He had four offers in one week at over market value… all from real estate professionals.
5. Finance the home yourself with low down and at or just-over market interest rates. Owner financing is a great way to get more than a property is worth when financed traditionally.
If Your owners can’t/won’t do any of these, then… they’ll need to price at today’s value to sell.
This article was written by Donna Stott of Your Coaching Matters.
Tracey C. Velt is a writer, blogger and editorial strategist who specializes
in the business of real estate. For the past six years, she's been writing
and editing for REAL Trends. Prior to that, she served as an editor for
Florida Realtor magazine and continues to contribute to multiple real estate
publications, both in print and online.3 Responses to “How to Sell a Property For More Than It’s Worth”
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Great Article!
Thank You for the information.
Thanks Niko. If you’d like to check out my blog it’s at yourcoachingmatters.com
This is a very informative article. Having been a broker for over 30 years I have used all of the above tactics for increasing the sale value of a home. In the declining market we are in today using these techniques sell a property faster and that translates into more value to the seller.
A quick nickle is better that a slow dime!
Steven Innis, CDPE, SRES
Clairemont Realty
CA DRE Broker’s License #00644965 since 1982