Across the United States, nationwide home sales reports are showing that the real estate market is picking up. While the Indianapolis real estate market is still struggling somewhat, recent Indianapolis home sales reports are even showing that we are heading in the right direction.
Even though we still may be hurting a bit around Indianapolis, and the rest of Indiana, home sales are picking up in some sectors. Home builders are gaining in their optimism and beginning to buy up land again for development. Prices and home values no longer seem to be plummeting. Homeowners are beginning to breathe a sigh of relief instead of feeling a constant state of panic.
It used to be that just competing against other Indianapolis homes for sale was hard enough. Indianapolis has always had homes in various price ranges, low, mid-range, and luxury. Each price point requires a home selling strategy and at no other time is that more true than in our current real estate climate.
Even though we are seeing some improvement in our climate, some general rules seem to be applying to Indianapolis and other cities around the country. As a rule, the least expensive homes are selling the fastest, properties in the middle sit for a while and luxury homes struggle the most. The high-end homes do not seem to have seen much of a break yet.
For each level, a different home selling strategy is in order.
Least expensive homes:
If you are a buyer interested in a home on the cheaper end, make sure your Indianapolis REALTOR® has you on automatic updates to be notified the minute a house goes on the market and schedule a showing immediately. Don’t wait to make an offer because good deals will likely go quickly. Experts say don’t wait and put down as much cash as possible to compete against investors.
Sellers should adapt a home selling strategy at the lesser expensive end not trying to compete with the foreclosure market. Instead, sell that buyers can move in right away. Since many homes in trouble will end up selling as short sales, this process can take a long time for buyers. Make sure you sell that you can close right away and buyers can take advantage of the $8000 First-time Home Buyer Tax Credit.
If you’re buying a home in the middle range, make sure you sell (or have an accepted offer) on your own home first because you will want to know how much equity you have in your home before buying your next home. Some real estate experts consider a ten percent discount off the asking price to be a realistic request in such a lukewarm atmosphere.
When selling a mid-range home, sweeten the deal as much as possible to compete against the other homes on the market. Make your initial asking price under what is expected (if you can afford to), offer to pay closing costs or make updates.
Buyers at this end have their pick and can usually ask for a lot to get the deal closed. Even if sellers laugh off a low offer, you can usually negotiate rather easily other terms such as closing costs and improvements.
Sellers at this end might be best to hold off until the market improves overall. But if you must sell now, be ready to take less than you expect your home is worth and get a realistic picture of values by looking at recent solds in your area. Also consider offering the buyer’s agent a larger commission to bring you that buyer.