How to Sell a Home in a Down Market

Selling | October 30, 2019 | written by Corbin Chivers

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The real estate market can be a volatile market. It is a good time to sell a home when the market is up. However, when the market is down and you have to sell a property, how will you be able to make sure the sale is for a price that doesn’t leave a bad taste in your mouth? 

“Up” markets are best defined by desirable selling conditions that are attained through favourable housing prices, such as the case of Vancouver’s booming housing market. Conversely, “down” markets are generally characterized by housing price cuts and homes that have been unsold for extended periods of time.

Down markets, in particular, are known for being notorious as a homeowner’s nightmare when they decide to part ways with their property and move into a new home. If you’re struggling with offloading your home right now, then you may be in a down market. The problem is so common to the point that you might also know a few people that are struggling with offloading their homes in down markets.

 

Effective tips for selling in a down market

Fortunately, selling a house in a down market is only difficult if you’re unaware of what you’re doing wrong. It’s important to know what you’re supposed to be doing right in the first place. To ensure that you can sell your home at a fair price in even the most harsh of markets, here are a few ways you can consider: 

Be realistic with your price

One common mistake that most people make when offloading their homes in down markets is that they peg their properties at an astronomically high price. By realistically pricing your property, however, it will be much easier to present your home as an attractive option to a buyer that’s ready to jump on a deal that also works in their favour. 

While there may be no exact formula for realistically pricing a home, best practice dictates that you should set your asking price one to two percent lower than that of other comparable homes in the market. 

Sweeten the idea of buying your home

With buyers holding all the power in a down market, it is essential to appease to their preferences by injecting a few deal sweeteners in your home listing. Through the use of deal sweeteners, you can make your own property listing stand out twice to three times as much as other homes in your area without having to spend or slash the listing price by a significant amount. Here are a few deal sweeteners you could possibly use: 

  • Free home warranty
  • Seller financing
  • Downpayment assistance
  • Additional financing for future home improvements
  • An inclusion of appliances

Bring the services of a professional agent in

At one point or another, dealing with a down market may present more challenges than one may expect, most of which cannot simply be surmounted by an average homeowner. Should the challenges of a down market become too tough to handle (such as getting a fair price), then it’s best to bring a professional real estate agent or broker in. Many problems can arise if you try to navigate the real estate market without knowing what you’re doing. Read our blog on how you can easily choose your real estate agent.

Having a licensed real estate professional work their magic will speed up the selling process of your listing without having to sell at a losing point. They have industry expertise and knowledge of marketing strategies and the like. For a single-digit percentage commission, you can pass the stress of selling your home in a down market to someone who has the expertise to do it for you more effectively. 

As challenging as selling in a down market may be, following these three tips in mind can help you make a sale more easily. 

 

If you’re looking for one of the best realtors in Langley, get in touch with us today! We’d be happy to help with your real estate needs.

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