Selling when foreclosures are nearby

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Foreclosures are difficult for everyone.  Homeowners forced out for non-payment are often scared, disappointed and not sure where to turn.  Banks are left with often run-down homes and months or even years without payments.  There’s another group that also suffers when a market is saturated with foreclosures and that’s sellers.  Many people think it will be impossible to sell their home if there’s a foreclosure, or multiple, in the neighborhood. While a foreclosure can look like a great deal because of it’s low price, there are some things that help make a non-foreclosure remain competitive in an area with foreclosures.

A single foreclosure in your neighborhood may have little to no effect on your ability to sell but multiple foreclosure can have a serious impact on your bottom line.  Here are our tips for selling with foreclosures in the area.

  • Price it right – in an area with multiple foreclosure, it’s especially important to work with your real estate professional to set a competitive but fair list price.  A home that’s priced too low might give the impression something is wrong with the home.  A price to high won’t get any showings or interest.  Make sure your real estate professional pulls comps that are not foreclosures when setting your list price but also be aware of your foreclosure competitors including their price and condition.
  • Clean it up – this applies to any new listing but is especially important when you’re competing against distressed home.  Get your home in the best condition you can reasonably afford.  This will help it stand out against those homes that seem like a smashing deal but often need a ton of work to be habitable.
  • Upgrade the important things – experts say minor kitchen and bath remodels or upgrades can add big bucks to your final sales price.  This gallery shows some upgrades that generally offer great ROI.  Always talk to your real estate professional before making any major changes to a home that’s listed for sale.
  • Be flexible – limiting showing times, being home during showings and not working with your real estate professional on price decisions can all add up to a smaller profit at the closing table.  Remember, your agent is a professional who knows the area, the market and if they’re doing their job, they know your home.  Listen to their advice and make changes when needed.

Do you have foreclosures in your neighborhood?  If you’re ready to sell and worried they might affect your ability to do so, contact The Chris Wylie Team today for information about getting started or click here for your complimentary, no-obligation home valuation.

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