Setting the proper asking price for your home is the single biggest factor that will determine the success or failure of your home sale. The consequences of making the wrong decision are painful. If you price your home to low, you will literally give away thousands of dollars that could have been in your pocket.
Price it too high, and your home will sit for months, developing the reputation of a problem property (everyone will think that there is something wrong with it).
Failure to understand market conditions and properly price your home can cost you a bundle or cause your home not to sell….preventing you from achieving your goal. We Won’t Let This Happen To You!
Utilizing the latest computer technology and our in depth knowledge of the market, we will analyze current market conditions in combination with your personal time requirements to identify the correct price range for your home.
You can’t afford any guesswork in this critical step.
The proper price gets a faster sale, which means you save on mortgage payments, insurance, and other carrying costs.
As you know, it takes a lot of time and energy to prepare your home for showings, keep the property clean, makes arrangements for children, and generally alter your lifestyle. Proper pricing shortens market time.
INCREASED SALESPERSON RESPONSE
When salespeople are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.
EXPOSURE TO MORE PROSPECTS
Pricing at market value will open your home up to more people who can afford it.
BETTER RESPONSE TO ADVERTISING
Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.
When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great deal.
MORE MONEY TO SELLERS
When a property is priced right. The excitement of the market produces a higher sales price in less time. You NET more due to the higher sales price and lower carrying costs.
Incompetent Agents - who will accept a listing at any price the seller puts on it.
Neighbors - who lead the seller to believe they got more for their house than they actually did.
Inflationary Times - that cause prices to go up rapidly because of economic factors.
Recessionary Times - that cause prices to go down because of adverse economic conditions.
The Market - when drastic changes in supply and demand alter a home's worth.
Loss of Perspective - due to the seller being emotionally involved and losing their objectivity.
Need for a Certain Amount of Cash - has nothing to do with value no matter how important the reasons.
Many potential buyers won't even look, thinking it's out of their range.
Those buyers who do look are shopping by comparison, and looking at your home may convince them to make a bid on a different property.
Since an appraisal is often required in financing a property, it's futile to price a property for more than it's worth.
Often the first question buyers ask is, “how long has it been on the market?” Properties left on the market for extended periods of time usually become "shopworn" which causes many to believe something's wrong with it.
Overpricing tends to dampen the other salesperson's attitude, making it less likely to be shown.
Overpricing lengthens marketing time, and invariably results in a lower selling price than would have been otherwise obtained.
A house that "sparkles" on the surface will sell faster than its shabby neighbor, even though both are structurally well maintained.
From experience, REALTORS® also know that a "well-polished" house appeals to more buyers and will sell faster and for a higher price. Additionally, buyers feel more comfortable purchasing a well-cared for home because if what they can see is well maintained, they assume that what they can't see has probably also been well maintained. In readying your house for sale, consider:
Before putting your house on the market, take as much time as necessary (and as little money as possible) to maximize its exterior and interior appeal.
HOW MUCH SHOULD YOU SPEND TO PREPARE YOUR HOUSE FOR SALE?
In preparing your home for the market, spend as little money as possible. Buyers will be impressed by a brand new roof, but they aren't likely to give you enough extra money to pay for it. There is a big difference between making minor and inexpensive polishes and touch-ups to your house, such as putting new knobs on cabinets and a fresh coat of neutral paint in the living room, and doing extensive and costly renovations, like installing a new kitchen.
Your REALTOR® is familiar with buyers' expectations in your neighborhood and can advise you specifically on what improvements need to be made and which improvements are most effective. Don't hesitate to ask for advice.
MAXIMIZING EXTERIOR AND CURB APPEAL
When preparing to put your home up for sale, your first concern is the home's exterior. If the outside, or "curb appeal" looks good, people will more than likely want to see what's on the inside.
Here are some tips to enhance your home’s exterior and curb appeal to buyers:
MAXIMIZING INTERIOR APPEAL
You want your home to look as spacious, bright and clean as possible. Also the home should look neutral – without a lot of your personal and sentimental objects - so buyers can begin to imagine living there.
Here are some tips to enhance your home’s interior appeal to buyers:
Give every room in the house a thorough cleaning and remove all clutter. This alone will make your house appear bigger and brighter. Some homeowners with crowded rooms actually rent storage garages and move half their furniture out, creating a sleeker, more spacious look.
These are the Steps we will take for you to help you achieve your goals. We look forward to serving you.
In order to sell your property for the most amount of money in the least amount of time you must have maximum exposure of your home/land to the marketplace. Below is a list of 11 key services that agents should use to provide you with maximum exposure. The marketing plan should include:
These are not the only marketing strategies but these are some of the most important ones. If you have chosen a REALTOR® that utilizes these strategies, you can feel confident s/he will most likely do a good job for you.
It is important for sellers to understand certain strategies and formulas in the listing and selling process to net you the most money.
First, make sure you know your REALTOR®’S List-to-Sell Price ratio. The final sale price (what a buyer pays for the home) divided by the last list price expressed as a percentage. If it's above 100%, the home sold for more than the list price. If it's less than 100%, the home sold for less than the list price. Looking at sale-to-list percentages can help buyers and sellers get a sense of how to negotiate on pricing.
Let’s say a REALTOR®’s List-to-Sell Ratio is 93%. That means if you list your property with this REALTOR® you should expect to net 93% or better of your listing price. (This is provided that you will list your home within 5% of the Comparable Market Analysis suggested list price.)
Before you list with a REALTOR that offers you a lower fee rate, make sure you have done the math to know if in fact a lower commission will net you more. If the REALTOR has a lower list-to-sell ratio you may find out that you actually net less. Do the math: Take the list price X the list-to-sell ratio – the commission = probable net amount you will walk away with. Check it out.
Knowing the area absorption rate is important for you as a seller to know to give you some idea of how long it might take to sell your home.
The absorption rate is the rate at which available homes are sold in a specific real estate market during a given time period. It is calculated by dividing the total number of available homes by the average number of sales per month. The figure shows how many months it will take to exhaust the supply of homes on the market. A high absorption rate may indicate that the supply of available homes will shrink rapidly, increasing the odds that a homeowner will sell a piece of property in a shorter period of time.
Example of Absorption Rate Calculation - Let's say that we take the number of settled sales for the last six months in a certain area, and it is 120. We then check the current number of active listings, and it is 520 in that area. First, divide the 120 sales by 6 months, to get a rate of 20 closings per month. Then, divide the 520 active listings by 20 to arrive at 26 months to move that inventory; that's the absorption rate
Knowing the average days on the market for all properties sold in a given time period is helpful information to you as a seller to know what to expect for the time frame to get your home/land sold. If the average days on the market is 129 days (which it was in this area for October, 2013) and your home has a contract on it in 90 days – you and your REALTOR® are ahead of the averages! On the other hand, if your home has been on the market for 150 days and you have not had an offer, it is time to talk with your REALTOR® about what you can do to spruce up the property, lower the price and/or talk about the marketing plan. Remember, homes do not sell for two reasons – priced incorrectly or poor marketing.
When an offer is presented on your home, you will have three basic choices in deciding how to respond:
Together we will thoroughly analyze the offer. We will discuss its strengths and weaknesses and determine whether or not it meets your primary goals. After scrutinizing the entire contract, we will share our recommendations, and then you will decide how to respond.
This is where a professional, competent agent can be worth their weight in gold, because having the right wording or contingency clause in the contract can mean the difference between a smooth transaction and a messy process.
Being intricately familiar with real estate contracts, we know how to protect your best interests. Our experience in negotiations will benefit you.
If you would like to preview the contract and supporting documents you will need to sign once we find a buyer, just ask. We will be glad to forward you a sample.