Competing With Distressed Properties
If your financial situation is ok, and you would like to sell your Las Vegas home and buy a new one in today’s marketplace, can you still make a decent profit on the sale, despite the competition from short sales, foreclosures and the like?
In your case, if your Las Vegas home and property are in good shape and up to par, pricing will be the critical key that will establish your market presence.
Once you have chosen an agent to list your property, your agent will be an invaluable aid in helping you to establish an asking price that will attract buyers, leave you some maneuvering room during negotiations, and ultimately allow you to profit from the sale.
In order to arrive at that magical number that will both attract buyers and allow you to profit from the sale, your agent must do a comparative market analysis (CMA) of the homes for sale in your area.
Depending upon its complexity, a CMA can vary in detail from a couple of pages to several pages or more. A properly done comparative market analysis will take into consideration the following:
- Pending Listings: This is an analysis of former actively listed homes that are currently under contract. These homes have not as yet closed, and so final pricing details may not be known until closing. The listed price of pending homes, however, can provide a guideline for arriving at a competitive price for your home.
- Sold Homes: Your agent will list comparable homes in your area that have been sold over the past six months. This information is vitally important, because these are the figures that will enable you and your agent to arrive at a competitive and yet profitable asking price for your property. These are also the figures that will be used for appraisal purposes when your home has attracted a buyer.
- Your agent will also take note of homes that were taken off the market for various reasons, often because of an unrealistic asking price –seller’s greed.
The bottom line is this: If your home is in move-in condition, attractively “staged” and landscaped and most important, competitively priced and effectively marketed, most distressed properties will be no competition at all.
Think about it, if the buyer is comfortable with the price and likes the home, wouldn’t he/she rather buy a home in move-in condition than buy a lower-priced home that is in need of repair, particularly if the repairs, as could be the case, would cost the buyer more in the long run than the lower selling price would indicate?
Besides, many REO homes are being listed at market or close to market price anyway, so your agent’s marketing strategy should include the advantages to the buyer that a well-cared for home has over most distressed properties.
If you are planning to sell your home in Las Vegas, we can help. Call us for a free no obligation consultation at 702-376-0088.
Tony Sena is a Las Vegas Real Estate Broker/Salesperson and Designated Property Manager with North American Realty of Nevada. He currently oversees a team of 10 real estate agents and manages the Property Management Division. He can be reached at 702.376.0088.