There have been multiple reports published recently citing that sales of new homes are on the rise by as much as 5-6%. While this is great for the real estate industry as a whole, it can pose a slight problem for anyone trying to sell an existing home.
The basic premise is simple: If more people are buying new homes, there will be more new homes for you to compete with when you are ready to sell your existing home.
If this trend in new homes sales continues like we expect it to, anyone looking to sell their existing home is going to have to have a solid plan in order to market their existing house and actually get it sold.
Here are five key areas to focus on if you are looking to help your existing home compete in a market where the demand for new homes is still rising:
Understand Your Local Market
The first step in marketing any type of property is to understand exactly what the buyers in that market are looking for. Depending on where you live, this could mean any number of different things, but it is important that you pay attention to what features and amenities are important in your community.
Once you have a basic knowledge of what trigger points are really important to buyers in your market, all you have to do is emphasize how your existing home can deliver on those desires.
The number one fear of most real estate sellers is that they will price their property too low and end up leaving money on the table. But they often fail to consider that the value in moving a home quickly often outweighs any extra cash you might gain by holding out for a higher price.
When pricing your home, not only do you have to take into account recent resale comparables, but you also need to pay attention to what new homes are selling for.
Pricing your home as much as 10% below fair market value will send a loud and clear message to anyone looking to buy that you are offering a fantastic deal that will deliver more value than purchasing a new home in the long run.
Update Key Features
The counterpoint to charging less is offering more. In order for your existing home to compete with any new construction homes in your community, you are going to have to include some of the features that make new homes so appealing.
Things like granite countertops and luxurious bathrooms are the reason that many buyers gravitate toward newer homes. If your home contains these same features, that will go a long way towards leveling out the playing field.
Highlight Character and Value
Existing home sellers can definitely add value by updating certain rooms in their house, pricing aggressively, and understanding the local market. But new homes can never compete with the character that an older home in an established neighborhood carries if you get the sales pitch right.
Your existing home probably contains lots of character in the form of unique details like custom woodwork and established features like mature landscaping. Highlight these features in all of your sales materials. Combined with the value of aggressive pricing, your home will become the existing home that all new homes are measured against.
Clean, Clean, Clean
Everyone knows that the three most important things in real estate are location, location, and location. However, the next three most important things for selling an existing home are clean, clean, and clean.
In order to compete with a brand new home, you need to make sure that your existing home shines like it’s brand new. And after that, it probably wouldn’t hurt to go over everything a few more times just to make sure you didn’t miss anything!
Competing in a market where brand new homes have an awful lot to offer can be very difficult. But if you understand your market, price aggressively, update key features, highlight your homes character, and make sure it is spotlessly clean, you will find that there is still plenty of room in today’s market for existing home sales as well.