What is the best way to sell your home? Should I use a traditional method of listing my home with a realtor for six months or more, or should I consider an auction?
I cannot tell you how many times I have been asked that question? I remember one person telling me she had asked that same question to a realtor and the realtor said a traditional listing agreement was her best option. She then went on to say that she supposed I would say an auction was the best method since I was a professional auctioneer. I think I surprised her when I said, “It depends.” She responded, “Depends on what?”
I can remember the days when a property was listed in the morning and an offer was made a few hours later after being listed. I have in mind two locations: Virginia Beach, Virginia and Las Vegas, Nevada. I am sure it has happened in other parts of the country back then in the “good ole days” when everyone wanted to be a realtor, but I had realtors friends living in these areas and they didn’t think it was bragging to let me know when this was happening.
I don’t think I need to tell you how property values have fallen in these areas since 2008. And I don’t think I need to tell you that we are not in a hot real estate market in the Raleigh-Durham-Chapel Hill area of North Carolina. Oh sure, some property values are up in these areas, but we don’t see people standing in line to scoop them up as soon as they come on-line.
So, let’s get back to the question, “Depends on what?” Before making a decision as to what is the best method to sell your home, you may want to do a little homework. For example: what are homes in your area selling for currently in comparison to six months or a year ago. You may want to even go back further to get a better picture of the history of home values in your area.
How many homes are currently for sale in your area? How many days or months on an average have the homes been on the market? Is you neighborhood transient or stable? Are there young people or older people living in the area. How old is the neighborhood? Does your home need repairing in any area, viz., plumbing, roof, painting, bathroom/kitchen needs updating, etc.? How convenient are the schools and shopping centers? These are just a few of the questions you need to answer.
And I suppose the $64,000 question is “Why are you selling and how soon do you need the home sold?” If you need cash in hand as soon as possible, you may want to consider an auction.
If you are under water with your mortgage, meaning you owe more than what the home is worth, you may need to work out a “short sale” with the lender before an auction or traditional listing is considered. (A short sale is where the lender is willing to accept less than what is owed on the property. However, under certain conditions, you could still be responsible for the balance due.)
But a short sale can takes months to work out and a buyer is not going to hang around to see if the lender will accept the offer or not. Plus, most realtors hate short sales because of the time involved to get lender approval.
What is the best way to sell my home? Well… it depends. It depends on more information than I can write about in this article. Why don’t you give us a call at 252-257-4822 and we can discuss the best option for you.