Tuesday, May 3, 2011

Money mag says: When Real Estate Gets Tough...

The May issue of Money magazine is out, and it’s all about how to get your house sold in a stubbornly resistant real estate market.

Money’s conclusion:  Yes, of course, your house has to be in top condition. And staged. But guess what works best?

The right price.

Here’s ForSaleByOwner.com’s Matt Brown, director of business development, as quoted in the Money story:

"Incentives can perk buyers' interest just as much as price cuts, says Matt Brown, director of business development at ForSaleByOwner.com. In fact, many buyers will agree to a higher price if their upfront costs are lowered, since they often run short on cash. 

If you can afford it, offer to cover the buyer's closing costs or pay the first year's property taxes or condo or homeowner association dues. However, those freebies may be practically standard, particularly in areas rife with distressed properties. "

Implied: cut your transaction costs so you can free up money for buyer’s incentives. How can you cut your transaction costs? We think we know: the less commission you have to pay, the more negotiating room to play.

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