Mortgage Updates

How to Sell Your Home… Faster!

Current statistics in the greater Sacramento area show homes on the market for an average of 67 days.

lacer County statistic show average days on the market are ….70 days…

But, yes – you can sell more quickly if you work with knowledgeable professionals. Real Estate agents in general are pretty good at their job. However, many agents have become a casualty of the “hot” market years. By this I mean they have lost their true sales skills, in the “take a number” market. 

To sell your home at the price you are asking for and in a reasonable amount of time, you need an agent who is not intimidated by financing. This is a skill that has been under used by agents in the last run up sales market. Choose an agent that has a good working relationship with a lender that is knowledgeable in the types of loan products available for the buyers of YOUR home.

For example, if you are priced under $425,000 you would be appealing to the first time home buyer market. Your agent should be equipped with five different loan program options for your potential buyers:

1. Zero Down program

2. One program using down payment assistance.

3. One program that uses FHA financing

4. One program for members of PERs (CA State Retirement system).

5. One for veterans.

These are some examples. Your agent should have discussions with you about the average difference in sales and asking price. In Sacramento County the sales prices are nearly 6% lower than the asking prices. Looking at the chart below tells me it makes sense to sell quickly since the numbers show a downward trend. The longer you are on the market, the less you will get.

 Rather than walking your price down as your listing ages on the market. Your agent should give you alternatives and make some real suggestions in advance of your actual listing. Things you can do to get the better price and sell faster.

Using the five financing examples, include a seller credit in each for closing costs. A 3% credit to assist the buyer with their purchase is a better option than a 6% or 7% price reduction. Be proactive with your marketing plan and how you contribute to the sale. If your buyer will pay list price, perhaps you would contribute 6% to the closing on an FHA loan and pay for a temporary rate buy down in addition to closing costs. Now your potential home buyer has an easier time qualifying … increasing your buyer pool.

How will your sales agent get the word out? If properly advertised open houses are still successful. But, that also takes more work these days. Canvassing your neighborhoods with invitations, or mailing invitations to past customers requesting referrals for your home. The utilization of "ugly yellow signs" Using an ART (automatic response technology) where buyers can call a toll free pre recorded hot line for more information for financing has also proven to drive increased open house traffic with motivated and in many cases qualified buyers.

If your home is in the JUMBO loan category, it is even more important to have financing options at the ready.  The days of just let the buyer bring their own are over.  Even quality buyers with a substantial down payment may not have considered various options that include seller participation.  You, the seller, can benefit if your agent has opportunities to offer potential customers.These days it is back to the basics. Finding the buyer is the first part, showing them how they can afford to purchase through tailored financing is what makes the sale!

For more information on the use of "ugly yellow signs"  and ART please call 877-429-0712 ext. 17 for a FREE Prerecorded message.