Over the last couple of years, the Houston real estate market — like many others around the country — has been red hot. Homeowners have listed their property and received full price offers within hours. In some cases, bidding wars have even awarded sellers more than their asking price.
In recent months, the larger real estate market has stabilized somewhat. It remains a seller’s market, but homes in many regions are sitting a bit longer than in years past.
If your house has been sitting for weeks or even months without receiving any competitive offers, however, there’s probably a reason. Do some investigation so you can make adjustments, if possible, and smarter decisions in the future.
Every situation is unique, of course, but if you’ve had trouble trying to unload your home in a seller’s market, one or more of the following issues is likely in play:
If your home isn’t selling, you usually have options. Here are a few of them:
If there’s a specific issue that’s preventing you from selling your home, the most obvious solution is to fix it. Whether it’s a tangible concern — such as plumbing problems — or a legal issue, like irregularities with the title, tackling these factors head-on will make your listing more desirable to potential buyers.
Someone will buy your home no matter what’s wrong with it. You might not like what you end up getting for it, but it can be sold.
The key may be to price it below market value and exercise some patience. At some point, a buyer will come along and make you an offer.
Perhaps you don’t have to sell your house right away. If that’s the case, it might be a smart idea to take it off the market for at least a few months and devote your time and energy to other concerns.
Then you can revisit the idea in the future. By that time, it’s possible that various external factors may have shifted. Not only could there be a new crop of buyers on the market, but the market might have improved further.
Sometimes you need the money desperately. In these situations, the second-best option is to apply for a new mortgage.
“If your need to sell is based on financial reasons, it might make sense to take out a home equity loan, providing you can afford to pay a higher monthly payment,” real estate industry expert Elizabeth Weintraub writes
“If your existing loan is an adjustable-rate mortgage, and a higher interest rate has raised your payment to the extent that you can no longer afford to pay it, you might be able to renegotiate a loan modification plan with your lender or convert that ARM into a fixed-rate mortgage at a lower interest rate.”
If your house just won’t sell and you don’t want to lower the price below market value, you could try to rent it out. This would allow you to cover the mortgage (and possibly make some additional cash).
Just make sure you know what you can get for the house before you go this route. “You can get a fairly accurate estimate of potential rent revenues by checking out postings in your neighborhood,” Patricia Poladian writes for Money Crashers.
“The online real estate marketplace Zillow uses MLS data and a proprietary formula to estimate rent values on specific homes. Rentometer provides a similar service. You can also talk to a local real estate agent or property management company or check Craigslist to see the going rate in your area.”
Beyond dollars and cents, you have to think about whether you’re willing to let someone else live in your house. The psychological hurdle can be tough for some, but it may not be a problem for you.
Whether you’re looking to sell your home, rent it out, or buy another one, our friendly and experienced team at Green Residential is here to help. In terms of selling, we operate on a flat-fee rate, which could save you thousands of dollars in commission.
As for renting, our comprehensive property management services will handle all the small details, as well as the big-picture items, so you can rest easy and make better use of your time. For additional information, don’t hesitate to reach out and contact us!
We look forward to the opportunity to serve your needs.
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