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As an investor type thinker, I was given the opportunity to purchase a rental unit to utilize as a secondary income or to roll over into another investment property. The particular duplex I was interested in had a great rental history, was an all brick exterior (which is a plus with the insurance companies), was currently rented, and was updated with current expected amenities. The duplex was listed at $135,000 and was a great starter duplex and an instant money maker.

I made several inquiries to a realtor to see if I could get through the property and learn more about it. Unfortunately my realtor left on vacation and told me it would “likely” still be around when she got back. Needless to say, it was not.

There were a couple of reasons that I formulated of why this property sold so quickly:

1. The property was fully rented and was instant equity.
2. Great appearance, and cosmetically updated.
3. (most importantly) priced where the market should be.

Number three on this list was the biggest factor of all and could be the sign of good things to come. Homes are currently lowering in price to match the conditions of the market. The homes in the area where I live are still overpriced by 10-12%, but that number is quickly coming down to meet market conditions. This, in my opinion, is the biggest factor to a horrid market that many foresee continuing its crooked path in a downtrend.

What needs to happen to see a quick turnaround?

• Do a little bit more to bring attention to your property.
• Make sure there is something in your home that is memorable to people that visit.
• Price your home at current market conditions, and quit assuming buyers owe you an increased price because of “all you did to the place.”
• Offer special incentives to buyers including paying a month or two of the mortgage or picking up the closing costs.
• If you feel you are being low-balled, offer a higher price but include a home warranty. This gives them the peace of mind that the property will be safe if anything does happen during the first year.
• Don’t list your home with “needs TLC” or quick fixer-upper, this immediately makes people think of foreclosure and low-ball pricing.
• Most importantly, interview or see what your options are with realtors, tell them how you would like your home marketed and bounce ideas before signing a contract. See if they have a guarantee of sale.

Remember like any service, realtor’s commission prices can be negotiated. 7 percent is standard, but most don’t baulk at a 6% or some even lower to get your business. The realtor will likely go lower in commission if you guarantee them the opportunity to purchase your house through them as well.

Although the market isn’t strong by any means, it is us the American Public, that needs to do our part to ensure a quick and timely turn around. Don’t accept sub-prime mortgage offers, (as I found out in selling my home) they tend to fall through and give you a false hope that is just not needed with the market the way it is. Conventional loans are the only way to go. If it sounds fishy, make sure you keep close tabs on the loan process and if possible, bring in some back up offers.

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