Selling in a Down Market
You may be worried about selling your home in the
Montclair, New Jersey area in a market where prices
have fallen significantly. Granted, it's a tough
choice (if you have the choice) to either wait it
out in the hopes that the market will improve or, to
sell before it gets far worse. If you do decide to
sell, you have more influence than you might think
over the final sale price. I have written
extensively about a seller's influence over sale
price in my book, The Complete Idiot's Guide to
Selling Your Home (Penguin, Jan. 2010). Aside
from pricing well, staging, photographing it
professionally and exposing the property to as much
of the buyer pool as possible, you will be in a much
stronger position if you understand the mindset of
buyers in this type of market. And together, we will
get you a better price as a result.
Why a Buyer's State-of-Mind Matters
Buyer behavior patterns are actually very
predictable. They behave one way when prices are
falling and another way when they are rising. The
good news is that, even when sales are slow and home
prices are down, you can still sell – and sell at a
very good price. People always buy homes. They have
growing families, shrinking families with kids going
to college, they get divorced, and they retire. And
relocation for business is a huge revenue source for
the Montclair and Glen Ridge, New Jersey areas.
Getting a good price is about finding the right
buyers who are in the right mindset. If you know how
buyers think and behave, you will target and attract
the best and most qualified among them. When you
finally connect with the right buyer, you will be a
much better negotiator. Also, because you understand
him, you will be able to anticipate and diffuse
problems leading to a cleaner and smoother deal.
How Buyers Think in a Down Market
Buyers who are shopping for a new home when
prices are coming down have little sense of urgency.
They are somewhat tortured by the possibility that,
while they need to buy, they may be doing so at the
wrong time. They wonder if they should wait and find
something cheaper if prices come down further. They
suffer from a sort of "analysis paralysis," going
back and forth between their need and their fear of
buying. It affects them while they are shopping, and
it continues to affect them while negotiating on a
home on which they have decided to make an offer.
Below are the beliefs that typical buyers have in
common, in a down market. They are not always true
but they tend to believe…...
-
That they probably shouldn't have to pay your full
asking price.
- That there will always be another home to see as
there is plenty of housing inventory to choose from.
- That if they don't make an offer on your home
today, it will still be available a few weeks from
now.
- That they can drag out the negotiations until they
wear you down and agree to their price.
- That the market has further to fall.
I am able to give you real strategies to deal
with this mindset and not just to 'get your home
sold' but - at a good price. You will be armed with
specific information that will put you in a position
of power rather than a position of weakness. My
track record is clear. In the recent falling market,
over 70% of my listings sold at or above the list
price.
Buyers Who Make Lowball Offers in a Down Market
There are buyers in the Montclair and Glen
Ridge, New Jersey area who will see an opportunity
when your home is not selling and submit a lowball
offer. They do see value in your home, but only if
they can get it for a great price, or a "steal."
This type of buyer figures that he has nothing to
lose by making the offer in the remote chance that
you will accept it. Lowball offers can be perceived
as a great insult. Some sellers reject them out of
hand or do not respond to them at all. But, there
are ways in which you can work them to your
advantage and I have much experience in this area.
Every seller will have a different definition or
perception of what a lowball offer is. Some think
that a few thousand dollars under the list price is
"low-balling" it. Others think that it's an offer
that is at least 10 percent below the list price.
But, a genuine lowball offer depends on the larger
trend in the Montclair, Glen Ridge, Verona and West
Orange, New Jersey area is at the time. I can show
you what the trends are and share with you specific
strategies for dealing with lowball offers.
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