Tag Archives: buyer’s perspective

How To Get Top Dollar For Your Home

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How does a seller get top dollar for their home? Every seller wants the assurance that his/her house will sell at the highest price possible. But, real estate, as with most industries, is a highly inexact science. There are many factors at play within rapidly changing market terrain. While there are no concise answers as to how one ensures a house sells for top dollar, there are some important considerations to deliberate as the seller that can help you maximize profits, maintain control and reduce the stress that comes with home-selling.

  • Know why you’re selling and keep it to yourself.

The reasons behind your decision to sell impact the process greatly. Do you already have another house in escrow? Do you need to sell quickly? Or is profit your highest priority? All of these questions will factor into your pricing strategy. However, do not reveal your motivation to anyone else other than your agent or they may use the information against you during negotiations.

  • Set your price appropriately.

Setting the right price is the single most important decision you will make when you decide to sell. Price too high and you will turn off potential buyers. Price too low and you may leave money on the table. Make sure you do your homework by looking at comparable sales in your neighborhood in the last 3-6 months. Visit all the competitive offerings and see how they’ve been priced relative to the condition of the home. It’s always good practice to know your competition. While pricing, stay as objective as possible, and really look at your house from a potential buyer’s perspective. Emotional attachment to the house tends to drive pricing higher than necessary.

  • Maximize your home’s sales potential.

You may not be able to change your home’s floor plan or location, but you can make cosmetic updates that will enhance buyer impression. Assess your home, again, through the eyes of perspective buyers, and determine what can use updating. Fresh carpeting and/or a paint job can transform a space dramatically. If possible, avoid showing the house empty. You want to help potential buyers envision the home as their own, so provide neutral staging or de-personalize your existing décor. Furthermore, make repairs to visible damage. And don’t ignore the exterior. Buyer impression starts upon arrival at the house, so make your home appealing from the curb.

  • Consider a pre-appraisal and a pre-inspection.

A pre-appraisal will provide you with an objective basis for pricing your home. Additionally, a pre-inspection can identify any issues with the house that you can address ahead of time rather than during escrow as re-negotiating during escrow can be more costly since you’ll have less leverage and the transaction can be at stake.

  • Know your buyer.

While you shouldn’t disclose much about your reasons for selling, you should try and find out who your buyers are. Why are they moving? Do they need to move quickly? Are they in good financial standing? Having some information on the buyer’s motivation and personal situation will give you the upper hand in the negotiations process.

  • Time your sale.

If possible, watch market conditions carefully and time your sale. Typically, spring and summer are good times to sell. But specific to your market, be mindful of supply and demand. Are there more buyers than sellers? Are interest rates reasonably low? When there are more buyers in the market, sellers can get better pricing and terms, especially if there are multiple parties interested in your property.

  • Hire the right listing agent to represent you.

Truthfully, nothing is more instrumental to your successful home sale than the right real estate agent for your needs. Not all listing agents are created equal. If you hire an experienced agent, they will perform all the research necessary to advise you on all the points listed above: pricing, home improvements, negotiations, timing of the sale, etc. Get a few quality referrals from friends and interview several agents. As part of the interview, make sure you understand how each agent’s marketing plan for your property differs.

To sell your home for top dollar requires proper positioning of your property to the maximum number of prospective buyers. Educating yourself on market conditions and having an experienced agent as your representation will increase the likelihood of a successful transaction for top dollar.

 

Reasons Homes Don’t Sell

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As a homeowner with a house on the market, your dream scenario is to have the house sell within days and with multiple offers. If you are selling during a housing boom, that can very well be the case.  But under current market conditions, the buying-frenzy scenario isn’t as likely, especially if you are inadvertently making any key selling mistakes.

If you’ve had your home on the market for several months and haven’t seen much activity or any offers, you might want to step back and identify the reasons why the house isn’t selling.

Price is too high

The most common reason for a home not selling is that the list price is too high.  Enthusiastic real estate agents who are eager to win your business may suggest a too high asking price.  Or often times, you as the seller have high expectations given your history with the house.  Whatever the reason, if a house is priced too high, it will limit traffic to the house and hinder buyers from making an offer.  Make sure when selecting an agent to work with, that you don’t necessarily go with the agent that suggests the highest price. Agents wishing to win your trust should have a lengthy comp list of recent sales to justify their suggested price.  The fact is, your home is in competition with other homes in the neighborhood, and what buyers are willing to pay will determine the final sales price.

The condition of your home

If there’s healthy inventory on the market, your home could be in a decent amount of competition.  What sets your home apart from the competition is its condition.  The more you can do to make your house appealing to a broader audience, the better your chances are for a quick sale.  That means de-cluttering the house, de-personalizing the space, and neutralizing the rooms.  If you make upgrades to the house prior to listing, don’t get too personal with finish selections.  Other easy and cost-effective fixes that make a huge impact would be paint, flooring/carpeting and curb appeal enhancements.

Location, location, location

So cliché to say, but so true… location is king.  Buyers want homes zoned for good schools, in a safe neighborhood and have great community amenities.  If your house is in a less than ideal location, your real estate agent might offer up some improvements to minimize the home’s shortcomings.  But the only reliable way to overcome a difficult location is with a lower price that adjusts for the less-than-ideal location.

Soft marketing campaign

With 90% of buyers starting their home search online, you need to make sure that the pictures of your house are appealing.  Online first impressions are very important in this day of age of real estate.  Beautiful pictures lead to appointments with interested buyers.  Flat, lackluster photos will leave your home with few showings.  Additionally, an aggressive listing agent should be touting your home to the greater agent community and running ads in numerous publications.  As the seller, make sure you understand the extent of the marketing campaign and ask for marketing updates from your realtor periodically.

Limited Home Accessibility

To get your home sold quickly, it’s important that the home is widely exposed to other agents and potential buyers.  That means the house needs to be easily and frequently accessible for broker’s open, showings and open houses.  While highly inconvenient for you as the seller, being flexible and making the house accessible for potential buyers can help reduce your days on market.

If your house is languishing on the market, make sure you take a step back and survey your home from a buyer’s perspective.  Ask yourself if your home is priced appropriately amongst the competition.  Verify that your real estate agent has a comprehensive and strategic marketing campaign in place.  And make your home available for as many showings as possible.  If what your home needs is a quality rehab, take it off the market and make some updates to give it a fresh facelift.  A break from the market is often necessary to give a new lease to the listing.