How to Sell Your Home During a Recession

By: Alicia Schuller, Marketing Coordinator, NHS of Baltimore

If you’re trying to sell your home in this economy, you’ve probably noticed that you have your work cut out for you. It is a buyer’s market folks and you, the homeowner face an uphill battle to ensure that your home sells in a timely manner and at a fair price. There may be some of you out there, still dreaming of more lucrative days- where home prices were dramatically inflated and there was no such thing as an outrageous ask. Times have changed my friends. A recent report out by the Federal Housing Finance Agency (FHFA) shows that the housing market is just beginning to enter the trough of the mortgage crisis and predicts it will take as much as 6 ½ years for it to return to normalcy.

There is hope! Federal, state and local governments are promoting homeownership now more than ever in hopes of revamping the market. There are so many incentives for first time homebuyers available it is only a matter of time before people begin to use them. However, there are a few things you should absolutely know and do before attempting to put your home on the market, in order to ensure a timely sale and a fair price.

1. Pre-Listing Home Inspection- have the home inspected by a professional home inspector before you list it for sale. This will allow you to accurately and realistically price your home. It will also reveal any problems with the home prior to the homebuyer’s inspection so that you may have them repaired before hand. Lastly, it may encourage the homebuyer to waive the inspection contingency all together. Click HUD.gov for more details…

2. De-personalize and Detach Yourself From the Home- About.com recommends that you put away all personal pictures and heirlooms so as not to distract the potential buyer from looking at the home itself. You want to accentuate the space, not photos of your dogs and children. It seems harsh, but you have to think about the home as though it is not yours anymore. You want the potential buyer to be able to picture where they can put their photos and sentiments.

3. Wash and De-Clutter Everything!- Don’t hold back on making your home shine. Make sure you wash every window inside and out, shampoo your carpets, scrub and re-paint your walls, and clean up cluttered rooms and closets. You want the home to look immaculate so as to send a message that you have taken good care of it. Anything you haven’t used in a year should be donated, thrown out or put in a storage unit. Potential homebuyers will look in your closets and cabinets, so you want them neat and tidy. Lastly, put some of your furniture in storage. According to About.com, houses show better with less furniture.

4. Make Minor Repairs and Spruce Up the Outside- if you or the home inspector come across minor repairs, go ahead and nip them in the bud ahead of time. It will make the home more appealing and give you a bargaining chip in price negotiations. However, State Farm Insurance recommends that you should not undertake any major remodeling efforts. The homebuying price rarely ends up covering the cost of such repairs. Also, walk around your home and make sure there is no peeling paint and that all landscaping is trimmed and well kept. Take all necessary steps to make the outside of your home look inviting.

5. Disappear During the Showing- State Farm Insurance also suggests that you not be around during the showing of your house in order to make the setting more comfortable for buyers to ask questions. Preferably, try to keep children and pets away as well.