Idaho Falls Real Estate Blog

When Mark and Jana Nelson decided last summer to sell their Idaho Falls home they had been in for 14 years and move to a new neighborhood, they thought that it would be an easy task. All they needed to do was list their home and in a few weeks it would sell. After all, the Idaho Falls real estate market was booming and had been for over a year. Once their home was listed, they immediately began the exciting search for what would become their dream home. Several weeks later, paperwork was signed, a lot was selected and construction was started. The only thing left was to get their current house sold.

The first few weeks the home was on the market quite a few people had come through the door; but the Idaho Falls real estate market had already begun to slump. Interest rates were slowly rising, and there were more Idaho Falls homes for sale than buyers. Each week less and less people were showing interest in the house. Before they knew it, they were scheduled to close on their new home, but didn’t have a buyer lined up on their existing home, despite reducing its price twice. They were now stuck with two mortgages and unsure of how to make ends meet. What should have been exciting and fun turned into one of the most stressful times in their lives.

This same story is being played again and again all over the country to numerous people. According to the National Association of Realtors, there are close to one million more sellers this year than last, while the number of houses sold has fallen by 10.7% in November compared to the previous year.

Things might not be looking as good as they once were for the sellers, but don’t worry, this might be one of the best times to be a buyer. So, how do you keep from getting stuck with two mortgages? Here are some suggestions.

Sell first, find it later
It’s going to be extremely hard to resist the temptation of jumping full steam ahead into the buyers’ market. If you happen to find that perfect house, you might be setting yourself up for disappointment later if you have a hard time selling your home. Chances are, you’ll be much better off financially by fighting the urge to buy until you have a solid offer in hand for your own home. Even if that means you have to spend a little time searching from a hotel. Keep in mind, the market is good for buyers, and you’ll have plenty of houses to look at in order to find that perfect one for you.

Price like a buyer
If you don’t have time on your side, or the patience to keep from shopping for another house, you’ll need to be smarter. One of the biggest mistakes that some sellers make is to price their home too high. The truth is, it doesn’t matter how much you think your house is worth, or even how much you’d like to get out of it. If a buyer thinks it’s too expensive, they’ll look elsewhere. The problem is not that the house won’t sell, but that it won’t sell at that price.

In order to price your house right, you need to know what your competition is. Most buyers who look at your home are also going to walk through numerous others in the same price range. Get to know these homes. If your house doesn’t stand apart from them, you won’t get much interest. As a seller, you’ve grown attached to your home. This makes it extremely hard for you to take a step back and honestly evaluate your house from the buyer’s point of view, but it has to be done. Try to articulate exactly what it is about your home that will make someone want it over any other. If you can’t convincingly do it, lower your asking price.

Fix it up
We’ve all seen the shows on TV where someone spends a few dollars in remodeling, and then sell their house the next day for $30,000 over their asking price. It may happen, but it’s not likely. Does that mean you shouldn’t fix up your house before selling it? The answer is absolutely not. Upgrades may not allow you to get more money, but they will help you get the house sold by attracting buyers. When it comes to repairs, don’t leave anything for the buyer to do, or you’re asking for a lower offer; or worse yet, no offer.

Give incentives
Another thing you can do to spur interest in your house is to offer an incentive. You can be as creative as you’d like. Some sellers have been known to offer anything from money for Christmas toys, big screen TV’s, or gift certificates from furniture stores. The important thing to remember is the incentive must be desirable to the buyer, and substantial enough that they’ll want it. Once you figure out what it will cost you to not sell your house for six more months, the incentive will look like a bargain.

Mark it down
One of the fastest things you can do to get your house sold is to lower your asking price. Most sellers have already counted the money they will get from a sale and have a hard time accepting anything less. In their mind the house is worth what they’re asking, and when they lower that price they feel they’re “giving it away.” The reality is, it might be cheaper to lower the price than pay the mortgage, taxes, and upkeep while the house sits on the market. If you decide to lower your price, it must be substantial enough to make a difference. Don’t chase after a falling market by lowering the price a little bit at a time. You need to beat the market down. Lower your price enough that you’re competing against a whole new class of houses. That may mean a reduction of at least 10% for a home that’s not getting any attention.

If you follow these guidelines I promise you that your real estate experience should be a positive one; and more importantly, you should walk away with more money in your bank account.

Click here for more useful tips on getting your Idaho Falls real estate sold.