“I can’t sell my home…”
Published June 14th, 2007 in Birmingham MI Real Estate, Bloomfield Hills MI Real Estate, Metro Detroit, Seller Information.People arrive at miOaklandCounty.com in many different ways. One is by Googling a search phrase and then landing on an article I have written. Recently, a phrase has been popping up sporadically that goes something like, “What if I can’t sell my Michigan home?” I wish it were not popping up at all, but I understand the concern.
Clearly, there is some frustration in the market, particularly for sellers. Personally, our listing inventory hit a record this week with 24 properties that we are marketing and working toward a sale for our sellers. Though we have always been strong listing agents, for the last 6 years or so we have typically held fewer than 10 homes at any one time. Homes would be sold, and new homes would replace those. Now marketing times throughout metro Detroit are growing longer.
More than once this year we have remarked on the strong activity we are seeing in the luxury homes of Birmingham, Bloomfield Hills, Lake Angelus and on the lakes in Oakland County. It is encouraging to see that those with the most discretionary income are now returning to real estate as an investment. Their purchases have a wonderful trickle down impact on the local economy. Not only do Realtors earn commissions when a home is sold, but movers get paid, furniture stores make money and opportunities arise for those in the home improvement sector. We hope that this surge in the luxury market will find its way soon to the rest of the market.
Still, what is a frustrated seller to do?
There are options.
- The first thing I would suggest you do is be frank with your Realtor about your situation. While you may have felt a few months ago that you would “only sell if you got x,” now you might be feeling differently. A price adjustment could be in order. Many sellers are one step behind the market, chasing prices down in a frustrating spiral, always one step behind.
- If your home has been on the market a while, look at the kind of feedback you are getting, and see what you can do to address common objections.
- Offer a bonus to the buyer’s agent. This can help you get a showing that you might have otherwise missed. It is also usually cheaper than a price reduction.
There are actually a whole host of suggestions for sellers in our seller information category and our best seller advice is found in “Dear Mr. and Mrs. Seller.”
If your home is starting to drain on you financially there are options.
- Talk to your mortgage lender and find out your options.
- Consider renting the home and waiting for the market to come back.
- If you are falling behind, you should talk to your lender. Maybe you will need a short sale.
- Ask your Realtor about auctions so that your home can be disposed of quickly. Though you will typically get less, you are guaranteed a sale date in under 2 months.
The worst thing one can do right now is nothing.
Technorati Tags: buyers market, michigan home sales, birmingham mi luxury homes, bloomfield hills luxury homes, oakland county home sales
______________________________________________________________Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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I have just bought a home in Troy, which I am delighted with. I put in my offer the day it came on the market. It was the only house I saw worth buying; neutral paint throughout, smart kitchen, new roof, windows, furnace and a/c, beautiful yard and deck.
After having looked at 40 houses I was despondent. I am not sold on home-staging. I can see past a couch, window treatments and the smell of cookies. Almost all the houses I saw were dated and poorly maintained, and the asking prices did not reflect the cost of having to replace a kitchen, bathrooms, windows, a roof and furnace etc. At the moment the housing market is still uncertain, and potential buyers do not want to run the risk of updating a property which may still further fall in value, or at best not appreciate.
If you cannot afford to update your home before you sell then adjust the price accordingly. However, ask yourself if the cost of a few upgrades, removing wallpaper and cleaning your carpets will be more than the amount you will have to reduce your price to sell.
Samantha,
Congratulations!
Buyers have it tough in SE Michigan right now too. There is a lot to look at in most price ranges. You make good points about condition and price. It is hard for a seller to see that from a buyer’s perspective.
Yes, most people can see through staging. The times I have seen it work most successfully is in non-traditionally conformed rooms. I also have to tell you that people tend to like the builder’s model home better than the vacant home with the same floor plan, next door. So staging does work to some extent.
Hi Maureen - great words, especially for those falling behind in the mortgage.
Step One: Contact your Lender.
The problem is that many people have big companies for lenders.
There is one department that they will want to talk to and that is usually called the “Loss Mitigation Department”. By calling the 800 number on the mortgage statement they can be on hold and shuffled around forever.
I have a list of the major lenders and the direct lines and emails to those departments. I can forward that to you if you like.
Great Blog!
Mike, that would be a wonderful help! I would love it.
Seems to me as if Samantha is representative of buyers everywhere.. this is the same thing I hear in Manhattan Beach CA.. buyers are willing to buy if the property has “value”. Our sellers are getting smarter and realizing that the days of “throw it on the market and sort through tons of offers” is over..
home staging = properties sold… yes it is also a good idea that you just rent your home and wait for a potential buyer to arrive… patience is a virtue.. hahaha…