| Tips For Sellers |
 |
|
 Pricing Your Home What Happens When You List Too High |
Many sellers do not understand the damage that is done when a home is listed too high from the moment it is put on the market. There is a lot of "behind the scenes" action taking place that you may not know about, but which Realtors see every day.
It is a popular opinion that listing agents attempt to sell your home directly to home buyers. This is probably true to an extent; if a listing agent also has buyer clients, it is possible one of them is a perfect fit for your house. However, marketing directly to buyers is not nearly as efficient as marketing to other agents. Promoting your home to the hundreds of agents in the area who, in turn, are working with thousands of buyers, dramatically increases your personal sales force.
So, during the first couple of weeks your home is on the market, there should be a flurry of activity with buyers’ agents coming to preview your home so they can sell it to their clients. But this will only happen if your home is priced correctly for the market.
If you have overpriced your home from the start, fewer agents will preview your home–and possibly none will preview. After all, they are Realtors, and it is their job to know local market conditions and home values. If your house is dramatically above market, they are not going to waste time which would be better spent previewing homes that are priced right.
What happens if you start out with a high sales price, and then drop it later? That may work, but you’ve missed out on the flurry of initial activity you would have had if the price had been right in the beginning, thus it will take at least that much longer to sell.
Let’s say you do successfully sell at an above market price to an uninformed buyer. Your buyer will need a mortgage, and the mortgage lender requires an appraisal. If comparable sales for the last six months and current market conditions do not support your sales price, the house won’t appraise. Your deal falls apart. Of course, you can always attempt to renegotiate the price, but only if the buyer is willing to listen. If not, your house will go back on the market and you’ll have to reduce the price anyway. This increases the times your home sits on the market and makes it harder to get a good offer. Potential buyers might think you’re getting desperate to sell, so they will make increasingly lower offers. Meanwhile, the clock continues ticking.
By overpricing your home in the beginning, you could not only end up settling for a lower price than you would have normally received, but your home is likely to spend weeks if not months longer on the market than you anticipated.
Bottom line: If you want to sell quickly at a fair market value, price it right from the beginning.
|
|
|
|
› Top ‹
|
|
| What To Leave The New Owners |
| |
| Once you’ve sold your home, have you wondered what you should leave in the house for the new owners? Here’s some ideas: |
| |
| » |
Owner’s manuals and warranties for appliances |
| » |
Garage door opener/code |
| » |
Extra sets of house keys |
| » |
A list of local services that you trust — dry cleaner, yard service, plumber, etc. |
| » |
Phone numbers to the local utility companies |
| » |
If it is a condo, you could leave the phone number for the management company |
| » |
Extra cans of paint, cords of wood. or flooring tiles |
| |
|
|
|
› Top ‹
|
|
| How To Give Your Home A Facelift |
| |
One of the great challenges to selling a home can be showing all of its space, decor and natural light potential. For example, every home has crowded closets and dead space. Sellers should be aware that areas such as these are easy to spruce–up with a little elbow grease and old–fashioned innovation.
Begin by evaluating your closet/storage space, determine which areas can cut down in clutter. Go through old clothes, shoes, etc., and get rid of anything that will not be used and in turn create more space. Consider organizing shelves and other areas to make better use of your storage space, including your garage and basement. Also, try to throw out or give away any old furniture that is no longer of use.
Although most sellers keep their homes clean and well–decorated, it can be difficult to convince a buyer of a home’s potential when clutter is noticeable. As brokers, it’s our responsibility to offer any tips that will expedite the sale and make the experience more enjoyable for the seller. So once you’ve eliminated the unwanted items and furniture, you can begin the ’renovation’ process.
For non-storage spaces that could use a little more decor, consider adding a small bookshelf complemented with a cozy reading chair. Always be sure you’re filtering as much light into your property as possible. Open or replace curtains; light from a window offers a room more color, a great view and the illusion of more space. Always maximize the potential of existing décor by washing old curtains, re–staining wood casings, or anything else that refreshes and emphasizes all the potential of the space and decor of the home.
Prospective buyers are often more drawn to homes with clutter–free closets, open sunny rooms, and cozy little corners. To ensure you’ve realized all of the above characteristics, the last step should be to bring in a friend and observe their reaction. Seeing your own home through someone else’s eyes is a great way to make a home optimally attractive and more sellable to prospective buyers. All the hard work will be worth the reward of a successful sale. |
| |
|
|
|
› Top ‹
|
|
| 5 Maintenance Issues You Can’t Ignore |
| |
Sure, times are tough, and money is tight. It may be tempting to put off home repairs. And while it’s okay to rebuild your patio when you get that long–awaited bonus, some repairs can’t be ignored because they can cause thousands of dollars in damage--or worse they might affect your family’s health.
The June 2009 issue of Consumer Reports listed five "red flags of home maintenance" that need immediate attention --even in a bad economy.
Keep water away from the house. Gutters, downspouts and leaders collect rainwater and move it away from the house. Check the gutter system seasonally. Also, make sure that soil slopes away from the house.
Inspect the roof. Use binoculars to spot damaged or missing shingles, and check for cracks around chimneys, skylights and roof valleys, all common sources of leaks.
Keep bugs out. Termites and carpenter ants can do major damage, so inspect the exterior of your home for signs of their presence, and keep mulch, firewood and shrubbery away from the foundation.
Avoid mold. Inspect the interior of the house for signs of mold. If indoor mold covers less than 10 square feet, you can treat it yourself with a bleach solution. Professional help is needed for larger areas.
Seal foundation cracks. Hairline cracks can be filled with epoxy. For cracks wider than 3/16", however, consider hiring a structural engineer to inspect. These can be a problem |
| |
|
|
|
› Top ‹
|
|
| Listingbook For Sellers |
| |
| If you are a Seller and are not signed up for this fantastic program, you are missing out!
Listingbook introduces your home to the RIGHT BUYER to help it sell faster! |
| |
| » |
Reach a targeted audience |
| » |
Market your house to real–serious!–buyers searching for a home like yours |
| » |
Price it right–View competitive and recently sold properties in the area to price it right |
| » |
Stay informed–Receive daily reports detailing how many people have viewed and showed interest in your home |
| |
| Do you have questions about how you can get YOUR property sold faster? Call us today at (845) 279-7700. Listingbook is excellent for buyers, too. Ask us how you can search like an agent! |
| |
|
|
|
› Top ‹
|
|
| Getting the Highest Price in the Shortest Time |
In order to get the highest price in the shortest time, you need to know how to market your home. The better you market your home, the more offers you will get. And the more offers you get, the more choices you have to get the price and terms you want.
The most important factor of marketing your home is pricing it right. Your price should be adjusted to reflect the market, and the property's worth. The key is to get many people checking out your property at a fair price instead of having no buyers because your price is set too high.
Another important factor is the condition of your home. Make sure that your home looks ready to be sold. Fix any defects (peeling or faded paint, cracks, stains, etc.) Condition alone can sometimes prompt fast buying decisions. Not only should you fix any defects, but consider upgrading your home by making major repairs and cosmetic improvements before selling. A nice looking home triggers the emotional response that can lead to a financial response.
Learn how to negotiate the best terms for all parties involved. Terms are another factor which may be adjusted to attract buyers. If you insist on getting your asking price, think of what you can offer to the buyers, for example, improvements you've made, or even offering seller financing at a lower than market interest rate on a portion of the sale price. Convince them why they should be paying the price you have set.
Lastly, get the buzz out about your home. List your house with a hot agent that ensures your house is listed on the MLS and on the Internet. On your own, get the word out. It should be visible to passerby’s that your house if for sale, whether it be signs, local advertisements or you telling friends, family, and acquaintances. |
|
|
|
› Top ‹
|
|
| Making a Good First Impression |
If you want buyers to be interested in your home, you need to show it in its best light. A good first impression can influence a buyer into making an offer; it influences a buyer emotionally and visually. In addition, what the buyer first sees is what they think of when they consider the asking price.
A bad first impression can dissuade a potential buyer. Don't show your property until it's all fixed up. You do not want to give buyers the chance to use the negative first impression they have as means of negotiation.
Ask around for the opinions others have of your home. Real estate agents who see houses everyday can give solid advice on what needs to be done. Consider what architects or landscape designers have to say. What you need are objective opinions, and it's sometimes hard to separate the personal and emotional ties you have for the home from the property itself.
Typically, there are some general fix ups that need to be done both outside and on the inside. As a seller, you should consider the following: |
| » |
Landscaping - Has the front yard been maintained? Are areas of the house visible to the street in good condition? |
| » |
Cleaning or Redoing the driveway - Is your driveway cluttered with toys, tools, trash etc.? |
| » |
Painting - Does both the exterior and the interior look like they have been well taken care of? |
| » |
Carpeting - Does the carpet have stains? Or does the carpet look old and dirty? |
|
|
|
|
› Top ‹
|
|
| Know Why You are Selling |
If you know exactly why you are selling, then it is easier for you to set the right plan of action to get what it is that you want.
If you are a seller who needs to close a sale as quickly as possible, then you should know that getting the highest price possible is not one of your priorities. It does not mean that you won't or cannot get the highest price, but it means that the price is not the deciding factor. A buyer who can give you a quick closing time will appeal much more to you than a buyer who can offer you more money but the negotiation and closing time drag on.
It's always good to know how low you will go, in terms of selling price. This will help to eliminate some of the offers that you find simply offensive or ridiculous. Even though you should consider all offers seriously and take into consideration the terms of each offer, sometimes, if you know the bottom line and are strict about it, you can save yourself time.
Once you know what your limits and reasons are, discuss them with your agent so that they can help you set your goals realistically. If you decide to list your home on your own, make sure you do research on the current market, and you get the proper advice you need in terms of legal issues, etc. The key is to be realistic and to know what your goals are so that they can be met. |
|
|
|
› Top ‹
|
|
| Setting the Price |
The price is the first thing buyers notice about your property. If you set your price too high, then the chance of alienating buyers is higher. You want your house to be taken seriously, and the asking price reflects how serious you are about selling your home.
Several factors will contribute to your final decision. First, you should compare your house to others that are in the market. If you use an agent, he/she will provide you with a CMA. The CMA will reflect the following: |
|
| » |
houses in your price range and area sold within the last half-year |
| » |
asking and selling prices of houses |
| » |
current inventory of houses on the market |
| » |
features of each house on the market |
|
|
From the CMA, you will find out the difference between the asking price and selling price for all homes sold, the condition of the market, and other houses comparable to yours.
Also, try to find out what types of houses are selling and see if it applies to your area. Buyers follow trends, and these trends can help you set your price.
Always be realistic. And understand and set your price to reflect the current market situation. |
|
|
|
› Top ‹
|
|
| Plan of Action |
| » |
Analyze why you are selling - If you understand your motives, you will be able to better negotiate and to get what it is that you want, whether it be a quick sale, high price, or somewhere in the middle. |
| » |
Prepare your home for the buyer - Maximize the strengths of your property and fix up it's weaknesses. You want the buyer to walk away from your home with a lasting good impression. |
| » |
Find a good real estate agent that understands your needs - Make sure that your agent is loyal to you, and can negotiate to help you achieve your goals. In addition, they should be assertive and honest with both you and the buyer. |
| » |
Be prepared for negotiation - Learn and understand your buyer's situation; what are their motives? Can you demand a big deposit from them? Try to lock in the buyer so that the deal goes through. |
| » |
Negotiate for the best price and the best terms - Learn how to counter offer to get more from every offer. |
| » |
Make sure the contract is complete - Be honest with your disclosures; you do not want to lose the deal because you were lying or diminishing your home's defects. Insist the buyers get a professional inspection. This will protect both you and the buyer. |
|
|
|
|
› Top ‹
|
|
| Finding the Right Agent |
Not all agents work the same way. The most important attribute of an agent is that he/she is well connected to the real estate industry. He/she should know the market and provide information on past sales, current listings, his or her marketing plan, and at least 4 solid references. In addition, you also want to look for an agent that is honest, assertive, and one that best understands your needs.
Try to go with a local agent. They can better serve your needs; they are familiar with what the local market condition is, the local prices are, and what's hot or not in your community. |
|
|
|
› Top ‹
|
|
| Considering Offers |
When reading an offer, keep in mind that you are out to get the best price AND the best terms for you. If you focus solely on the price, you may overlook terms that could be favorable to you as a buyer.
Some terms that may work in your favor: |
|
| » |
higher-than-market-interest in a second mortgage for your home |
| » |
the buyer will pay for most or all of the closing costs |
| » |
the buyer will take care of any repairs |
| » |
quick close - the buyer is pre-approved and ready to close in a time that best suits you |
| » |
all-cash deal |
|
|
| When reading through offers, remember to look at the whole package. Take the time that you need to assess what is being offered and if it meets your needs. |
|
|
|
› Top ‹
|
|
| Insist on a Home Inspection |
A professional home inspection protects both you and the buyer. It allows both you and the buyer the opportunity to learn about the property's defects.
A home inspection usually covers the following: |
|
| » |
Plumbing conditions - if there is leakage or clogging |
| » |
Roofing conditions - the extent of deterioration, if there is leakage |
| » |
Electrical conditions - if there are inadequate circuits or potential fire hazards |
| » |
Structural problems - if there are problems with the underlying foundation of your home |
|
|
| As a seller, the home inspection reports protect you because it establishes the actual condition of the property at the time of sale. |
|
|
|
› Top ‹
|
|
|
|
|
|
|
|
|
| |
| |
© 2009 Century 21 Real Estate LLC. CENTURY 21® is a registered trademark licensed to Century 21 Real Estate LLC. Equal Housing Opportunity.
Each office is Independently Owned and Operated. |
|
| |
|
|
