I’m Not a Bank…How Can I Still Sell My Home?

Riverside, California…A real, live body, human being seller has got to feel a bit like the red-headed stepchild in this current real estate market…seen, but no one asks them to play in the latest real estate games.  There is so much conversation about bank repos/REO’s that the poor “regular” seller feels like he has been tossed aside like wide ties and green shag carpet…adored once, but now seemingly forgotten.  However, all is not lost.  If Travolta and Brittany Spears can make a comeback, so can you…the normal, regular seller in today’s bizzaro real estate world….but here is what you have to know.

First, I know you are tired of hearing about banks.  So are we, but what can I say?…They are here to stay for a while (like your in-laws, but they may stay even longer), so you might as well get used to them.  They are the enormous elephant that is not only in the room, but is wandering the entire house.  So instead of fighting them, you are going to have to live with them for a while.

What does that mean?  It means that you must take them into account when pricing your home.  Buyers want bargains, so you are going to have to give them one.  Now, before you panic, understand that you WILL BE ABLE TO SELL YOUR HOME FOR MORE THAN THE PIECE OF GARBAGE THE BANK OWNS DOWN THE STREET.  If you have upgrades, pools, spas, nice flooring, etc, and the “money pit” owned by the bank does not, then you will get more for your home…you just need to realize that the “more” you will get must still represent a bargain to the ultimate buyer.

Contrary to popular opinion, there are still “normal” buyers out there…buyers who do not know a hammer from a tire jack.  Not everyone is Mr. Fix-it.  These “normal” buyers simply want a nice home, ready to live-in, and they know that they will  have to pay more for the home than the stereotypical REO…BUT THEY STILL WANT A BARGAIN BASED UPON TODAY’S REAL ESTATE MARKET.  Remember, the average REO is simply that…average.  If your home is well above average, then you can get a well above average price…above average price being defined by 2008 standards, not 2006.  Don’t dispair…your buyer is out there, but you have got to be realistic about what they will pay.

 Secondly, to also be successful with your sale, you MUST UNDERSTAND THE KEY TO SELLING IS FLEXIBILITY.  Here is an example we all know.

 You decide to drive from Riverside to Orange County on the freeway…and no matter when you plan to make this drive, you know there will be traffic and other cars to contend with.  A question?  When you merge on the freeway, do you really think you will be able to drive in one lane at a constant speed for your entire trip…or will you change lanes and speeds as often as it takes to get you to your destination as quickly and safely as possible?  We all know the obvious answer, and the same applies to selling your home.

When a good real estate agent (shameless plug for Westcoe here) lists your home for sale, the price they quote you at the time of the listing is merely a snapshot…a snapshot of the market at the exact time you decide to play the selling game.  This “picture” will show you all your competition…properties for sale, in escrow, and closed escrow…and all this data will paint a picture that will dictate where you fit in.  HOWEVER, LIKE THE DRIVE TO ORANGE COUNTY, YOU MUST REMAIN FLEXIBLE AND BE PREPARED TO CHANGE LANES AS OTHER CARS (houses) ENTER THE PICTURE.

All too often sellers price their home and then think they are done with that issue, when really they have just begun.  Your price is effective and relevant the day you list the property for sale (at least you hope it is), but that price potentially may lose it’s relativity by the addition of new listings, sales, or closings as time passes.  What worked on day one may not be applicable on day 30.  Again, a good real estate agent will advise you of this, and give you all the new data so you can adjust your picture if needed…much like you change lanes and speed on your freeway drive.  You cannot stay stagnant in your car, and you cannot stay stagnant on the real estate freeway either.

 In the end, we know these are difficult times for every homeowner.  Equity is tight, and good news is scarce, as the media tries their best to hide the good news behind the sensational news that is good for ratings.  However, rest assured that a good real estate company (Westcoe, for example) can guide you through these murky waters.  We have done it before, and understand what you need to do.  Just stay calm, stay patient, stay flexible…and leave the driving to us.