GMA Boot Camp: Sell This House!
More tips for selling your house in a tough real estate market.
— -- Like so many families across the country that are caught in the middle of the credit crisis, the Thiede family has had trouble selling their home. The house has sat on the Michigan housing market for more than a year.
A depressed Michigan economy hasn't helped car dealer Michael Thiede, whose income is based on sales. His income has decreased by 30 percent in the last year. With a new baby, Thiede sees selling the family's house as the only way to avoid financial ruin.
But the task has been more difficult than the family expected.
Watch "Good Morning America" Wednesday
"It's been a real struggle," said Michael, of Macomb Township, Mich. "Foreclosures have really increased dramatically in our area specifically."
Dozens of houses in the Thiedes' neighborhood, including his next-door neighbor's home, are for sale. Even area real estate agents said it's the toughest market they've ever seen.
"I've been in the business 41 years, and this market is probably the worst it's ever been in my career," said one agent.
"Good Morning America" sent in real estate contributor Wendy Bounds to help the Thiedes successfully unload their home. After a telephone conversation with Bounds, the Thiedes were nervous about what was to come.
"I'm definitely scared," Michael said.
Step One: Make Your Home Stand Out
Bounds said an extraordinary market calls for equally extraordinary measures. In such a competitive market, no room exists for imperfection, she said.
"Floors are really important, especially to women," Bounds said. "If they walk in and they're scratched, they immediately think it's a sign you're not taking care of the house."
Step Two: Make a Big Online Push
Michael already had his home posted online with the Multiple Listing Service Web site, but he wasn't using some of the site's potential buyer scouts. Bounds suggested posting the house on sites such as:
She also suggested Michael start his own blog to promote the house and keep track of his progress. Click here to link to Michael's blog.
"I had never really heard of a blog before they had mentioned it," Michael said. "But it's actually turned out to be a pretty fun thing to do on a daily basis -- just to update people and see if we can't market it."
Even using a vehicle like YouTube could help sell the Thiedes' home faster. A growing number of homeowners are turning to the video-sharing sites to sell their homes.
Bounds stressed that photos must be shot well, with no blurs or shadows.
Step Three: Reinvent the Open House
Forget about the traditional open house. Bounds proposed a garage sale/open house combo to bring more people to the house. For a touch of luck, Bounds also brought a statue of St. Joseph, the patron saint of selling, to the garage sale. Sales of the statue are up nationwide -- a sign of the troubled housing market.
In addition, Bounds encouraged Michael to implement some great sales incentives. For example, they could offer $1,000 finders' fee to anyone who found them a buyer. Real estate law regarding finders' fees differs from state to state. Check your state's law before implementing.
In the end, the garage sale was successful and brought dozens of people to the Thiede home who never would have looked at it otherwise. It also made the family some much needed money.
Step Four: Be Prepared to Drop the Price
Michael had his price set at $389,900. But in a tough market, when creative selling tactics don't work, sellers should be prepared to lower their asking price, especially before the holiday season begins.
There are 25 other homes for sale in the Thiedes' neighborhood, and 12 of those are foreclosures. Some of them are priced as much as $50,000 less than the Thiedes' asking price.
Bounds said sellers shouldn't ask questions like, "How much is my house worth?" or "How much profit can I make?" Instead they should think "How much can I afford to lose?" and "How long can I live here and pay the mortgage without risking foreclosure?"
If the answer to that last question is less than one year, sellers have to consider dropping the price before it becomes a crisis.