Due to the staggering effects of the Coronavirus, most real estate markets are now considered buyer’s market. Is there a way to sell your house during a buyer’s market in Milwaukee?
Selling a house in a buyer’s market sounds like a nightmare. With a small amount of potential buyers, you house may end up on the market for months before a buyer is found. Most of the time, this really isn’t your fault. It’s very difficult to find a buyer when there are less of them then sellers. Today, we can notice there is a buyer’s market in Milwaukee. What does mean?
What Is a Buyer’s Market?
If the number of sellers is significantly bigger than the number of buyers, we’re talking about a buyer’s market. This means that buyers have the upper hand. They have many homes to choose from, and they can be picky with their choice. This also means buyers are able to negotiate better price for their home. On the other hand, sellers may struggle finding the right buyer, and their house may even end up not selling at all. Even if they manage to sell it, they’ll typically profit less than they normally would.
If you’re a homeseller in Milwaukee, this probably sounds very troublesome. Luckily, there are ways to make this much easier. Here are some survival tips for getting through the buyer’s market in Milwaukee.
1. Offer to Pay Closing Costs
Even though buyers hold the upper hand, everyone loves discounts and not having to pay for everything! If you notice the buyer is having second thoughts because of the price, make sure you let him know you’ll cover the closing costs. If the buyer is already aware of that, as the closing costs were part of your listing, you can offer to cover moving costs, as well. When you’re dealing with the buyer’s market in Milwaukee, you want to let the buyer understand that you are willing to compromise.
Why should a buyer accept this instead of a lower price? If you lower the price for a bit, this will mean lower monthly mortgage. However, if you cover any of these costs, the buyer will get the money immediately. In other words, you should let them see that if you cover closing or moving costs, they’ll get a few thousand dollars right away, while if you lower the payment this will mean probably no more than $25 a month. The calculation is pretty straightforward.
2. Take the Time to Meet the Buyer
Another great way to succeed in a buyer’s market in Milwaukee is to get personal. If you get to know the buyer, you’ll more likely be able to make him buy your house. It isn’t necessary to meet the buyer in person to be able to do this. In fact, in the current time, social distancing is recommended and you should be cautious. However, you can always ask your real estate agent to give you a few more information. For example, if they are a first time buyer, you can offer them some major appliances that you no longer need as a gift. If the buyer has a family, offer to speed up the selling process so they could move in before the school begins. Try to place yourself in buyer’s shoes and think what it is that would make you finalize your decision.
3. Offer to Cover Repair Costs
Sometimes, inspection can find several things wrong with your property. Even if everything is okay, something might not be up to buyer’s standards, and they may insist you do certain repairs. While some sellers will agree right away, it’s much better if you just estimate the repair costs and offer to reduce the selling price by that much. Sure, you may overestimate the expenses and end up losing more than you should, but this is better than having to deal with the contractors. You may even agree to pay for the repairs in cash, as this way the buyer will get more money at once, compared to paying a bit smaller mortgage.
4. Lower the Price
Let’s face it. Price is the final selling point. If you think you have overpriced your house, lower the price for a bit. In a buyer’s market in Milwaukee, it is very important you keep your prices reasonable. The best idea would be to reduce it bellow a rounded price. For example, if your house is listed at $368,000, lower it to $349,900. This way, buyers looking for a home under $350,000 will find it. Be smart when lowering prices, and use this tactic whenever possible.
5. Don’t Walk Away from the Deal Easily
Even if you think the buyer isn’t serious, don’t walk away from the deal until you can be 100% sure that the sale would fall through. In a buyer’s market, keeping every potential buyer is detrimental, as you never know who will be the one who will decide to buy it. Even if you’re negotiating with another buyer, keep all conversations open. This is the best way to ensure you may be sealing a deal in Milwaukee.
6. Sell to a Direct Buyer
The biggest downside to a buyer’s market in Milwaukee is that only the best of houses will sell. Any property with even a minor flaw won’t even be looked at, as buyers know they have plenty of homes to choose from.
If you have a property that is in needs of repairs, or just a property that you need to sell quickly because of many possible reasons (including divorce or a foreclosure), the best option would be to sell to a local direct buyer such as Sparks Property Investors LLC. Direct buyers buy houses as-is, so you don’t have to deal with any repairs or upgrades. You don’t have to waste money cleaning it or staging it. Not to mention, with direct buyers, there won’t be any commission fees. Direct buyers will be able to close the sale quickly, sometimes in just seven days. This means you don’t have to worry about devastating holding costs that are expected in a buyer’s market. The best of all – they’ll buy in cash, so you’ll be able to get your money quickly. In a time of crisis, financial stability is essential.