Strategies to Sell Quickly in a Buyer’s Market

Introduction

Real Estate markets are constantly shifting between a Seller’s Market, a Balanced Market and a Buyer’s Market.  Selling your property in a Seller’s Market is relatively easy.  With an abundance of Buyers and not many properties for sale, the seller is in a good position to sell their property quickly.  A Buyer’s Market, on the other hand, puts the seller at a disadvantage and some very specific strategies need to be implemented in order to sell quickly.  This report details these strategies and explains the best methods to use to quickly sell your property in a Buyer’s Market.

What is a Buyer’s Market?

To get an understanding of the rationale of these selling strategies, let’s first discuss what a Buyer’s Market is, and what our mindset should be in this market.

Simply put, a Buyer’s Market is when there are more properties for sale than there are buyers to purchase them.  In this market, property listings are competing with each other to get the attention of the limited number of active buyers.  Looking from the other side, the buyers that are out there are looking for the best deal they can find.  This is the property that is in the best condition, and is selling for the best price.

In order to get your property noticed, you need to make your property stand out from the competition.  We need to look at what else is for sale in your neighborhood and make your property more attractive to a buyer than these other listings.

I like to think of a Buyer’s market consisting of actually 2 markets.  There are 80% of the properties that are “out of the market” and 20% of the properties that are “in the market”.  The 80% that are “out of the market” are the properties that are overpriced and not in the best condition to sell.  These properties tend to stay on the market for a long time and have many price reductions.  The 20% that are “in the market” are the properties that are attractively priced and are in good condition to sell.  These are the properties that buyers are looking at, and they tend to sell quickly. You want your house to be one of the 20%.

Why is it important to sell quickly?

Real Estate is a simple game of supply and demand.  When the supply is high and the demand is low (a Buyer’s Market) the prices that the market will support drop.  In this kind of market, you want to sell your property as quickly as possible to get the highest price.  The longer your property is on the market, the lower the selling price will be.

When ever I talk to a homeowner about listing their property for sale, I talk about 2 prices.  The first is the price that will sell their property quickly.  The second is the maximum amount they would expect to get for their property.  In a Seller’s Market, these are 2 different prices, with the quick selling price lower than the maximum price.  But in a Buyer’s Market, these 2 prices are the same.  The faster we sell your property, the higher the price will be.

The best selling strategies for a Buyer’s Market

Based upon what we have discussed up to now, I think you can guess what our strategies will be to sell quickly in a Buyer’s Market.  Let’s take a closer look at these strategies now.

1. Pricing

It’s obvious now to see that pricing your property correctly is the most important strategy in selling quickly, but coming up with this price can be tricky, and requires thinking a little differently.

In all markets, the best pricing strategy is to “lead the market” with your price.  If there is a Seller’s Market, this means to price your property slightly higher than the current market will bear.  How much higher your property is priced will dictate how long it will be on the market.  In a Buyer’s Market, though, in order to lead the market, we need to price your property lower than the current market.  Again, how much lower it is priced will dictate how long your property is on the market.

With the extended Seller’s Market that we had in the late ’90’s and early 2000’s, we have gotten used to pricing our properties higher than the current market.  We go through a Comparative Market Analysis (CMA) to see what the current market price will be, then pad our price a little bit in the hopes of getting a high offer.  What happens in a Buyers Market is that the house is ignored by buyers during the important initial exposure period.  Then the seller goes through a series of price reductions, trying to “chase down the market”.  But, as they try to catch up by reducing the price, the market and the homes desirability continue to drop.  The end result is that the home sells for much less than it would have, if it was priced correctly from the start.

Pricing your property “ahead of the market” right at the start will give it the maximum exposure it can get.  When a new house is listed on the market, it is looked at by Realtors and buyers extensively.  If the property is priced correctly, there will be an abundance of interest.  This interest is the first step in selling your property quickly.

But where do we come up with this price?  This can be a difficult problem.  In a Buyer’s Market, there are fewer sales to use as comparisons, and closings are less frequent so these prices may be out of date.  This is where a good Realtor comes in.  I perform a number of analyses to determine a price that will achieve the maximum amount of interest in this type of market.  The goal in this market is never to have a price reduction.  If we can price the property correctly at the beginning, this goal can be achieved.

2. Staging

Getting a lot of interest in a Seller’s Market is the first step, and a very important step.  But now we need to turn that interest into offers.  That is where staging comes in.  Staging is the process of putting your property in the best condition for Buyers to see it. 

This requires thinking like a buyer.  Look at your home with fresh eyes.  Does the kitchen look cluttered?  Are the closets organized?  A great way to understand how your house will look to a buyer is to go around and take lots of pictures.  When you look at the pictures, do you like what you see?  By using this picture taking approach, you get a better idea of what a buyer will see.  Another idea is to have your friends come over and look through your house.  Have your friends be honest in their opinions and listen to what they say.  One final tip, having a home decorated in neutral tones is the most appealing to the majority of buyers.  Lavish colors and decorations may be appealing to you, but may turn off that important buyer.

With buyers, especially in a Buyer’s Market, first impressions count.  With a small investment of time and money, you will be able to make your property stand out from the competition.  Below are a few staging ideas to do before you put your property on the market:

 Curb Appeal

• Cut lawns.
• Trim shrubs and add new shrubs to freshen gardens.
• Weed and edge gardens, and add new mulch.
• Pick up any litter or debris.
• Clear the walk and driveway of leaves.
• Repair gutters and eaves.
• Touch up exterior paint.

The First Impression

• Clean and tidy the front entrance.
• Make sure the doorbell is functioning properly.
• Polish the door hardware.

General Maintenance

• Oil squeaky doors.
• Tighten doorknobs.
• Replace burned out lights.
• Clean and repair windows.
• Touch up chipped paint.
• Repair cracked plaster.
• Repair leaking taps and toilets.

Spic and Span

• Shampoo carpets.
• Clean furnace.
• Clean refrigerator and stove.
• Clean washer, dryer and tubs.
• Clean and freshen bathrooms.
• Organize closets.

The Buying Atmosphere

• Be absent during showings.
• Turn on all lights.
• Open drapes in the daytime.
• Play quiet background music.
• Keep pets kenneled or outdoors.
• Bake cookies or bread before showings.

These may seem like small things, but research has shown that houses properly staged will sell faster, and receive a higher purchase price.

Conclusion

Nothing that has been mentioned in this report should be shocking.  It is simple, common sense.  It is, though, commonly overlooked.  I hope this report has been helpful to you.  If you have any questions about this report, or wish to discuss the strategies mentioned in further detail, I welcome your phone call.  Thank you for taking the time to read this report, and I wish you the best of luck in the selling of your home.

Sugaring Season Almost Here in the Kearsarge Region

There are so many winter activities here in the Kearsarge Region.  With the skiing, snowmobiling, show shoing, ice fishing and skating, it’s easy to forget one of the time honored traditions of early spring - Sugaring Season.

Starting in late February to early March, the days get warmer and the sap starts flowing in the maple trees.  For generations, we have tapped the maple trees and collected the sap to be boiled down to maple syrup – our own liquid gold.

Traditionally, sugaring season starts around Town Meeting day, the first Tuesday in March.  In the old days, folks would head out to the woods with a horse drawn sled, collecting sap from buckets hung from the maple trees.  Now, plastic tubing is hung from tree to tree allowing the sap to flow to collecting bins.  The sap is then transported, usually by truck, to the sugar house.

The sugar house is a unique structure with a cupula in the roof that opens up to allow the steam of the boiling sap to escape.  The boiler, often wood fired, is specially desiged to evaporate as much water from the sap as possible.  The sap boils in a series of troughs snaking through the boiling pan.  As new sap enters the pan at one end, it pushes the ever thickening sap through the series of troughs to the end where the end product is drawn off.

There are many sugar houses located through the Kearsarge Region.  For a complete list of sugar houses, visit the NH Maple Producers website.  If you are in the area during the month of March, you should make a point to visit one.  There you can see the boiling process, sample some syrup, and purchase freshly made maple products.  This is a truly New England past time and one not to miss.

Hiking in the Kearsarge Region

Trails for Everyone

One of the great resources we have in the Kearsarge Region of NH is a great network of hiking trails.  Whether you are interested in a challenging hike to the top of Mount Kearsarge, or a leasurely cross country ski trail through the winter woods, there are trails for everyone.

The SRK Greenway Coalition

One of the treasures we have for outdoor enthusiasts, is the Sunapee-Ragged-Kearsarge Greenway Coalition (SRKGC).  This is a non-profit organization that creates and maintains over 75 miles of day hiking trails in the Kearsarge Region.  This group of dedicated enthusiasts works with several private and state organizations, as well as local land owners to gain permission for trail placement.  As well, these folks maintain the trails of this network so they can be used by all.

At this point there are 14 trails through the towns of Andover, Danbury, Goshen, Newbury, New London, Springfield, Sunapee, Sutton, Warner and Wilmot.  These trails connect with Chalk Pond, Eagle Pond, Gile Pond, Kezar Lake, Lake Sunapee, Mount Kearsarge, Mount Sunapee, Pleasant Lake, Proctor Academy and Ragged Mountain.  There are trail maps and guides for all of these trails available at the SRKGC website.

The Northern Rail Trail

Another option for those wanting a more “level” experience is to enjoy the Northern Rail Trail.  The Friends of the Northern Rail Trail in Merrimack County have reclaimed the old railroad line from Concord to Lebanon.  They have, or are in the process of, removed the old railroad rails and ties, and have laid down a gravel surface suitable for hiking, biking, and cross country skiing.  This Rail Trail runs through the towns of Andover, Wilmot and Danbury in our area.  There are many accesses to use this trail and is a unique way to enjoy a walk in the country.

Enjoying the Kearsarge Region Trails

When you are out enjoying these trails through the Kearsarge Region, it’s important to follow a few simple rules.  The main rules are:

1. Stay on the trails.
2. No camping or campfires allowed.
3. Carry out what you carry in.

Many of these trails utilize private lands, so we all need to treat them with care.  This is very important for the long term use of these trails.

Hiking, snowshoing and cross country skiing are some of the many outdoor activities availble in the Kearsarge Region.  Having access to so many trails is a special gift to all of us.  If you are an outdoor enthusiast, I highly recommend joining these groups of devoted outdoorsmen and women.

What is the Kearsarge Region?

The Kearsarge Region of NH consists of the towns surrounding Mt Kearsarge.  These towns are Andover, Salisbury, Webster, Warner, Bradford, Sutton, Newbury, New London and Wilmot.  These small towns all have different qualities, but all offer a high quality of life.

New London and Warner are the largest of these towns.  These two have quaint business districts with small independently owned shops with a few well known stores thrown in.  The other towns in this list are predominantly bedroom communities.  These towns range in population from 1200 to 4000 people, with Wilmot being the smallest and New London being the largest.

There is a strong sense of community in all of these towns.  Most have events going on at the town hall or green during the summer months.  There are also festivals going on at different times of the year in this region as well.  I will describe these events in more detail in future articles.

A great way to get the feel for what life is like in this area, watch the following video that we produced for the Mount Kearsarge /Lake Sunapee Region.  In it, we interview people who work and live in this area.  You can watch this video here.

If you wish to discuss the details of any of these towns, please give me a call at any time.

Welcome to the Kearsarge Region Blog!

Welcome to the Kearsarge Region Blog!  In this blog, I will be providing information about the greater Kearsarge region of New Hampshire.  There are many reasons why this is such a special place to live, and I want to use this blog as a way to learn about the area that I live and work.

I will also be offering information on the local Real Estate market for your reading pleasure.  If you wish to learn more about the area or the local real estate market, please feel free to contact me.  I would be glad to help.