Underpricing By 10% is the Fastest Way to Sell a Home and Beat the Foreclosure Market

Underpricing a home is NOT a popular idea with most home sellers.

However, sometimes it is the only option available in this difficult market – especially if the homeowner carries TWO mortgages, one on the old home they are trying to sell and another mortgage on their new home.

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While home sellers are not too happy about the idea of underpricing, housing experts in an article at CNNMoney say that underpricing a home by 10 percent may help it sell faster. And while sellers may lose out on thousands from the sale, they likely will avoid months of carrying costs from the home lingering on the market to offset that loss.

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The high inventory of foreclosures on the market is making it difficult for sellers to compete against these ultra-low prices. Therefore, “listing your home for less than comparable ones in your neighborhood is the best way of unloading it as quickly as possible,” according to the article.

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You could even attract a bidding war, says Steve Murray, editor of the Real Trends newsletter.

Furthermore, it may take the property a lot less time to sell. For example, a home underpriced by 10 percent may sell in a few days rather than in several months to one year.

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For home owner who carries two mortgages, underpricing by 10% may be the winning strategy in the long run.

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SOURCE: CNNMoney

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First Impression – Ten Inexpensive Ways to Wow Buyers and Improve Your Home

Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of a potentially vibrant home-selling season, especially after our snowy winter this year here in Northern Virginia.

 Here are 10 inexpensive ways to make a property more attractive to shoppers.

1. Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
2. Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
3. Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
4. Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
5. Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
6. Buy warranties. Putting appliances under warranty gives homebuyers a secure feeling.
7. Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits - federal tax credit available up to $1,500.
8. Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
9. Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
10. Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

SOURCE: U.S. News & World Report, Luke Mullins

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